Exploiting planning loopholes Quickly followed by other large supermarkets, Asda is aiming for a massive expansion of several of its stores without having to go through the usual construction application process. To do this, they place an additional mezzanine in the supermarket, doubling the size of the retail space. Since there is no visible change from the exterior of the building, there is no legal requirement for the company to apply for a building permit, although the development often has a major impact on local retail models, i.e. it pushes many small retailers into bankruptcy. A February 2004 Guardian article reported that Asda plans to install a mezzanine in 40 of its stores. In most cases, the extra space is used to expand the store`s non-food products, putting it in direct competition with the main street. The same article reports that between 1997 and 2002, 13,000 specialty stores were closed.  ASDA is one of the largest supermarket chains in the UK. It deals with all kinds of products, starting with food clothing, lifestyle, children`s department, general goods, etc.
It is one of the uk`s top four supermarkets along with Tesco, Sainsbury and Morrison. The company was founded in 1949 and has experienced strong growth over the past 65 years. With 175,000 employees, ASDA is the third largest retail chain in the UK. ASDA underwent a major structural change when it was acquired by Wal-Mart in 1999. However, the company`s success is due to the good employer-employee relationship and the different practices adopted by ASDA`s human resources team. This report will focus on the organisational structure and culture adopted by ASDA, and a comparison will be made with British Airways to distinguish the two airlines. The report will also highlight the difference in leadership style between the two companies. The report then focuses on the different organizational and motivational theories used by ASDA management for its practices. In the final section, the report will highlight the importance of teamwork and how ASDA has benefited from teamwork. The importance of the technology and how it has become an integral part of ASDA`s day-to-day functionality is also highlighted in this report. 8 www.grocertoday.co.uk/gra_article.aspx?articleid=76031&wordstohighlight=asda 9 www.grocertoday.co.uk/gra_article.aspx?articleid=76058&wordstohighlight=asda 10 ibid.
Asda planned to cover 60% of the food market on the Internet in the United Kingdom by asda@home 2003. However, Asda`s internet plans never went as planned. He first talked about e-commerce in June 1999, but only grew slowly to an extent comparable to Tesco. His first project, “Captain Value Mad” (valuemad.com), was abandoned after less than a year when the company realized it was damaging its brand, Value Mad has since been launched in ShopSmart, in which Asda recently acquired a strategic stake. Through a joint venture with America Online, they distribute hard drives for Internet service provider AOL (renamed for the UK market to avoid the word “America”). The treatment of our members there is absolutely appalling. This is an exploitation of British citizens simply because English is not their mother tongue and some of them do not speak much English at all. Well, if what is being said about the reception of asylum seekers is true, it is a whole new ball game. It is highly illegal and dangerous for these people, and supermarkets. must be aware of these circumstances as soon as possible.  The program examines the lives of immigrants, many of whom come from Eastern Europe, who cannot legally enter the country, pay gang leaders large sums of money for false documents, and then be paid for unreliable irregular work well below minimum wage and have almost nothing to live on.
Illegal work In 2000, Asda was exposed in a Panorama documentary as a buyer of products from a supplier using illegal and exploitative labor. Fenmarc is Asda`s largest potato supplier. Due to “just-in-time” production methods, the demand for labor can fluctuate depending on demand, and for this reason, many use temporary workers – in this case, an agency called FP Personnel. When presented with falsified documents, suppliers do not ask too many questions with deadlines to be respected. 10 www.brc.org.uk/defaultnew.asp 11 www.dti.gov.uk/retaildoc/exec.pdf.