Asda Case

914 Words Aug 13th, 2012 4 Pages
ASDA Case
Stephany Mejia

1. What problems of motivation did Archie Norman discover at ASDA? Archie discovered that beyond the immediate financial crisis ASDA had organizational and cultural issues. These issues created a problem of motivation. ASDA’s top executives had offices in a separate part of the headquarters and were isolated from the rest of the company, one manager explained that executives seemed more interested in “hunting and partying” than in addressing serious issues faced by the company. ASDA had become more bureaucratic and hierarchical. The bureaucracy had reached a point that made it difficult to get anything done. With the financial crisis people feared losing their jobs, so they didn’t want any attention to
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3. What is the financial status of ASDA? How should the company be re-structured? What changes would you make? ASDA went thru a financial crisis in mid 1991 where their debt was over 1 billion pounds and stock prices had fallen substantially. They were well on their way to bankruptcy until Archie Norman arrived as the new chief executive. During Archie’s five-year tenure as chief executive he managed to turn ASDA around and get the company out of the financial crisis it was in. He implemented many strategic, organizational and cultural changes to restructure the company. The focus was on restoring value to the heart of the ASDA brand, revolutionizing internal communications and promoting colleague involvement. In 1999 ASDA was bought out by Wal-Mart and became part of the worlds largest retailer, currently as of today ASDA is financially stable and continues to grow. Archie’s restructuring plan was effective in improving ASDA. Some of the most important changes he made that helped save this company were the changes to the management structure, their new low value strategy mimicking that of Wal-Mart’s, the development of a new culture, the renewal program, and the communication and continuous improvement methods such as the different styles of group meetings, Tell Archie which was a means for direct communication for colleagues with him and the employee and