Archie Norman discovered that greater than the financial crisis that ASDA was going through, the organizational and cultural aspect of the company was another issue. ASDA was a bureaucratic company and the lack of communication between the employees and top executives was causing a problem of motivation. In addition, there was no incentive for the employees to advance in their careers. The financial crisis stopped the innovation within the company because people feared losing their jobs and they did not want any attention to themselves. There was almost no integration between the classes. Most of the executives came from high class society while the regular employees came from the working class. The communication was a problem since the subordinates were limited by their superiors because they felt afraid of saying anything else than what they wanted to hear. Absence of communication between the different departments such as marketing, sales, and finance created a problem with integration of every activity. The lack of motivation between the ASDA employees was increasing since they were not allowed to express themselves and felt afraid towards the executives.
2- What do you think Archie Norman should have done on his first day on the job ?
I think that the most important thing Archie Norman should have done on his first day at ASDA was convene a meeting with all the executives to gather ideas and present the improvements he was planning. Taking into consideration the employees input is also the next thing he should have done at the beginning because you are letting them know that they are a very important piece in the company and is also a crucial part for the restructuring of ASDA. In addition he should worked with an incentive plan were the employees can grow in their careers and received benefits.
3- What is the financial status of ASDA ? How should the company be re-structured ?