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ASDA

(Weber and Beer, 1998a: p. 1). That was precisely the state of affairs at Asda when Archie Norman entered into the scene as Chief Executive Officer (CEO).
The main reasons of the problems that Asda and Archie Norman had to face were due to complex organizational inefficiencies that they had to solve as soon as possible, right away, in order to survive, and at the same time Asda had to become an efficient organization once again. Among the different reasons behind Asda's failures by mid-1991 were the following: Asda as an organization with its own culture had become a bureaucratic and hierarchical institution beginning in the 1980s. As a direct result of this rigid functioning structure in the company any kind of innovation was stopped from being encouraged or implemented. Without any innovation Asda was unable to keep its competitive advantages in the retail market in the United Kingdom. (Weber and Beer, 1998a: p. 6). So Asda and Archie Norman had to face the challenge of transforming the superstore in relation to its management style of doing things as well as implementing a sense of culture based on the core values of Asda. Management and leadership had to change significantly in order to create a new productive and efficient organization.
Norman was clear about the fact that beyond the immediate financial c...
11). When he met on his first day at Asda with the Management Team he told them right away that "incremental change is not enough." (Weber and Beer, 1998b: p. 1). Right from the beginning Norman knew that drastic changes were needed in order to bring change and transformation into Asda. During his first day at Asda, Norman met with the Management Team, replaced the Chief Financial Officer (CFO), and met with the Financial Team. All along the next days he met individually with the Directors, visited stores in a random and non-official spontaneous way, and created a new Top Team that included Allan Leighton as a main figure due to his plural and multi-tasking abilities.

3.- What changes should Norman make, when, and in what order should they be made
The following are some of the most important things for Archie Norman to do:
1.- Make an accurate diagnosis of Asda's situation.
2.- Choose the right strategy..
3.- Make a drastic decision regarding the rights issue for raising fresh capital..
4.- Decide about the Asda's focus in terms of priorities in relation to stores, trading, finance, and logistics..
5.- Decide what to do regarding the nonfood businesses belonged by Asda.
6.- Decide on building a new team of managers as well as a new organization structure.
7.- Find relevant help from consultants in different areas of expertise.
8.- Decide about bringing new efficient employees, as well as deciding on how many, at what levels, and the ways of attracting them.
9.- Decide what to communicate to the shareholders and the employees about his plans for the near future..
10.- Decide what to do right away in order to make quick and results-oriented decisions by meeting with the Asda people at the very beginning of his arrival at Asda. (Weber and ...Show more

Summary

The overall chaotic situation of Asda by mid-1991 is described in detail by a research study conducted by James Weber and Michael Beer published by the Harvard Business School in 1998. Before 1991, Asda was one of the most successful retail businesses in the United Kingdom It had a competitive advantage due to its unique superstore structure and its low price leadership in the market…
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ASDA Essay essay example
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