Teh_Chin_Lee Case Study (Final)

8/18/2019 Teh_Chin_Lee Case Study (Final)

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CASE STUDY

Internal Marketing the Asda Way

Lee Pei Ru (8!8""#

Teh Thean Li$ (8!8"%#

Chin Mei &iun (8!8"'#

)*t+,er -!'


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.uesti+n

)utline the $e*hanis$s ,y /hi*h ASDA seeks t+ in0luen*e the ,eha1i+ur +0 its

e$2l+yees3

The present of share value of culture in Asda has influences the behaviour of employee.

Organizational share value and culture is a system of shared values, assumptions and belief

that lead employees to achieve company’s ultimate mission and vision. Asda has a very

strong organization share value and culture which focus on commitment to provide a level of

service which exceeding customer’s expectations. The organization culture affects the way of

managerial functions of planning, organizing, staff, leading and controlling is carried out.

Asda has a strong corporate culture which enables employees understand the goals of the

organization in order to work towards organizational goals and increase their level of

commitment. Organizations culture in Asda provides guidance and influence all employee

behaviour, thinking and behaviour pattern in the working environment. All employees in

Asda are compromising with three basic beliefs which involved respect for the individual,

service to the customer and strive for excellent. esides that, employees are always being

motivated with positive share value and culture. !ach employee at different level has the

correct channel to communicate and feedback their own opinions. Asda employees are happy

and satisfied with the working environment. "ence, the turnover staff rate in Asda is very

low.

#n additions, Asda empowered their employees by creating nurturing environment

where they can learn, develop, improve and perform efficiently. !mpowerment employee is a

process of encouraging and motivating an employee to have positive thinking, positive

behavior and effective decision making process in autonomous ways. Asda has established a

positive environment in order to encourage and inspire all employees a sense of trust, build

up positive attitude and increase working capability. Asda believes that employee

empowerment is the key to staff satisfaction. Top management is entitled to help and

stimulate employees’ capabilities where they are encouraging $ way communications with

employees, respect and recognized employees contributions. Apart from this, Asda employee

likely feels to be empowered when they believe that their performance review fairly evaluates

of their entire working efforts and contributions. Asda believes that empowerment employee

is important due to employees are the main assets to drive company businesses further.

!mployees are unable to perform well if they are not satisfied of the working environments.


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Apart from that, Asda believes that developing employee with %uality skills creates win&win

situation where the company benefits from having skilful, well performed and productivity

employees whereas employees gain addition skills or %ualifications which will increase their

career satisfactions, motivation and creativity. All Asda employees are train to work smarter

with minimum waste and maximize customer value. They are cultivated with Asda

philosophy and personal responsibility for the success of the corporations. 'eveloping

employees by establishing %uality trainings is essential to motivate employees to increases

employee confidence and increase overall working performance in a positive environment.

.uesti+n -

Where d+es ASDA4s a22r+a*h t+ internal $arketing (IM# lie +n the *+ntinuu$ ,et/een

transa*ti+n5,ased IM and IRM 6

#n A('A, the transactional&base approaches for internal marketing include the use of staff

manual for training and information, and two&day induction program to educate new staffs

about the philosophy and mission statement of A('A. The procedures in the staff manuals

showed ways to minimize waste and maximize customer value. #n addition to this, there are

three approaches serve as the continuum to internal )* in A('A.

+irstly, there is some form of daily routines, weekly huddle’, and monthly meetings

to facilitate the communication between employees. These meetings allow employees to get

together and discuss about operation issues, as well as exchange ideas about the work. +or

example, the colleague circles, monthly store meetings, and the listening groups.

-evertheless, there is lack of evidence that a routine meeting is held between the

management and employees on operational issues or improvement on work related matters.

(econdly, the employees are encouraged to communicate new business ideas directly

to the chief executive through Tell Archie’s +orm/. This approach is to improve the

weaknesses in colleague circles discussion and small group meetings. The feedback from the

management, however, is not clear if the new ideas are being considered or re0ected. This

approach is therefore considered as a continuum between transaction&based and relationship&

based internal marketing.


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Thirdly, A('A adopted mystery shopper to evaluate the %uality of service,

cleanliness, product availability, and other aspects of store provision of the outlets in order to

gauge the performance of each outlet and store manager. Then the management will reward

base on the point attained from the evaluation. There is no interaction between employees and

management on ways to improve service %uality, cleanliness, product availability and others

in the store. Also, the results of checking by mystery shopper were not shared by top

management with employees and store managers for further improvement.

.uesti+n -

T+ /hat e7tent d+ y+u think that the $e*hanis$s +utlined in the *ase su22+rts the

de1el+2$ent +0 l+ng5ter$ ,ased relati+nshi2s /ith *ust+$ers6

(hared value means explicit or implicit fundamental beliefs, concepts, goals or principles that

motivate the culture of a company and which will give a guide or correct path for all the

employees, management and member when they make decision or behave some action. +or a

company to success, it should presence a set of shared value which is pervading in all levels

of the company. The shared value of one’s company must include a commitment to %uality

and customer service. A('A’s mission statement is to be ritain’s best value retailer

exceeding local customer needs1 Always/ and the purpose are to make goods and service

more affordable for everyone/. y using this strong commitment style mission statement,

A('A management try to affect and align staff to embrace the company’s shared value.

2hen the employees have this clear mission, they will perform correctly and motivated

which will satisfy or delight the customers.

#n order for a company to have a well relationship with customer, ones’ company

must consist of skill’s staff with capabilities or distinctive competencies. "ence, A('A’s

store will be visited regularly by a team or mystery customers to evaluate the %uality of

service, cleanliness, product availability and others. This will alert and remind the employees

always stand by to satisfy the customer’s re%uirement. +rom this the product value will

always delivered in good and satisfied condition.

+or the A('A 3alues, they respect their employees by listening and respecting their

ideas. !mployee satisfaction can be arise when they feel that company is respecting them and

appreciate the ideas they give. These called 0ob satisfactions which can drive one’s employees

http://www.businessdictionary.com/definition/fundamental.htmlhttp://www.businessdictionary.com/definition/fundamental.htmlhttp://www.businessdictionary.com/definition/beliefs.htmlhttp://www.businessdictionary.com/definition/beliefs.htmlhttp://www.businessdictionary.com/definition/concept.htmlhttp://www.businessdictionary.com/definition/concept.htmlhttp://www.businessdictionary.com/definition/principles.htmlhttp://www.businessdictionary.com/definition/principles.htmlhttp://www.businessdictionary.com/definition/beliefs.htmlhttp://www.businessdictionary.com/definition/concept.htmlhttp://www.businessdictionary.com/definition/principles.htmlhttp://www.businessdictionary.com/definition/fundamental.html


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continue to serve for the company. !mpowerment activities such as weekly huddle’ time to

discuss the operational issues among the department and exchange ideas will minimize the

staff turnover rate for all levels. Apart from that, A('A also re%uest their employees to have

passion for product knowledge with up to date information and always react %uickly to

customer’s re%uirement which these all will facilitate the employees to take ownership of

relationship %uality. "igh motivated and satisfied employees will deliver high product value

which will satisfy customer and strengthen the customer’s loyalty towards the company’s

product. And on top of that will consolidate the long&term relationship with customer.

.uesti+n "

Suggest i$2r+1e$ents t+ ASDA4s IM syste$s3

The internal marketing system of A('A should consider improvement in the empowerment

of staff in creating and implementing programs that aligned with A('A mission and values.

The deployment of policy within A('A was found to be top&down method with the

introduction of staff manual during orientation for new staffs, and the verification of

employee competency by manager through regular appraisals. There is limited information

sharing in the organization which allows the employees to see the big picture of the company

mission and values in addressing waste reduction and maximizing customer value. Therefore

it is recommended to improve the sharing of information such as the customer survey

feedback, daily best&selling items summary, and other relevant information concerning

customer behaviour among the employees during the daily or weekly review meetings. 2ith

appropriate information given to the employees to see the big picture, A('A management

can empower its staff members to give suggestion during discussion on topics that are related

to policy decisions. (uch move will improve the sharing of corporate vision in the

organization as well as providing a chance for the staffs to share their individual vision with

the management. #nformation sharing can become one of the key success factors for A('A to

improve the internal marketing systems.

+urther, the structure of routine meeting like daily meetings, weekly huddle, and

monthly store meetings should be modified to allow the involvement of employees to

comment on policy suggestion and raise issues concern. The employees understand the needs

and concern of customers because they spent most of their time interacting with customers at

the store areas. Therefore the involvement of employees in the discussion concerning policy


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decisions will allow the management to understand first&hand information about the needs of

consumers. #t is important to create a healthy meeting environment where every employee

has a chance to raise his or her concern on issues encountered during the work. The feedback

from the management concerning the suggestion made through Tell Archie’ +orm/ should

be held in one of the meetings so that there is a two&way communications between the

employees and the management. 2hen the meeting structure allows all sides of the issue to

be heard and taken note, it helps to encourage consensus among the staffs to support for any

policy changes. !ven though there may have dissenters who disagree with certain policy, the

chances of disruption or sabotage can be reduced as their concerns and comments were heard

and addressed. This will encourage the implementation of share decision making process

within A('A that enable the organization to achieve its goal in minimizes waste and

maximizes customer value.

Another suggestion to improve Asdas #* system is establish a reward systems in an

organizations. An effective reward system supports an organization to be more competitive,

enhance employee motivations, retain key employees and reduce staff turnover. #t plays an

important role to help an organization boost up employee satisfaction and leading employee

loyal to the organization. As results, an employee potentially performs good services and

increases the level of customer satisfaction. )eward system is a key of recognition which

makes employee feels appreciated and valued. !mployees who rewarded with gratitude are

tend to be have higher self&esteem, increase confident level and willing to adopt new

challenges and innovative. "ence, it is important for management to concern about welfare

and well&being of their employee by developing a monetary or non &monetary reward system.

Top management may develop a strategic reward system for employee by providing

promotion, compensation, medical benefits, glamour recognitions and appreciation awards

when employee achieve companies ob0ectives or targets. ased on the *aslow’s theory,

employees are motivated when their needs are satisfied. There are five levels of needs which

include physiological, safety, love, esteem and self&actualizations. A lower need of the

employee has to satisfy before goes to the next higher needs to motivate employees. #t is

highly recommended to establish a reward system by referring *aslow’s theory in order to

satisfy all employees at different level in an organization.

+rom the case study, actually we can see that A('A is lack of the training assessment

for the workers, to identify what skills is needed for each employee. +irstly, A('A should


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categorise the employee according responsibilities individual and what role should be

performed by each categories. Appropriate individual training will motivate and empower

staffs which directly improve the internal relationship and ultimately benefiting the external

customers. The training must be follow a correct path to execute which large scale or

intensive training is cannot afford by many people. "owever, it has to depend on the

condition of every people. +rom my point of view, intensive and on 0ob training is very

effective to level up an employees who is capable to learn very fast and can develop own

knowledge thru the try and error practice in on 0ob training.

A('A need a proper training process which stress on the cycle of reviewing,

planning, implementation and evaluation in the business level activities. esides that, A('A

also can coordinate a suggestion system for the employees to propose what training is needed

to improve their working skills or competitiveness. (uch type of suggestion is %uite

effectiveness because is based on the employee’s demands to create a customized training.

"owever, after review and plan for the training, when the training been proceed, A('A

training team should monitor the whole training process in order to identify the factor to

affect the usefulness of the training. 4ast but not least, the evaluation of the training is it

assists the employees to improve their skill or not5

An effective training system or program can assist the company to be more

competitive and as a result an outstanding performance can be demonstrated which will

indirectly improve the customer’s satisfaction.

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Teh_Chin_Lee Case Study (Final)