CRN 17420 202010 Risk Management

CRN 17420 202010 Risk Management Assignment Sample 2022

1. Introduction

Name of the committee chair: CEO of the corporation

Names of committee members: Marketing chief, financial supervisor, administrative board personalities, organizational assistant, and risk management team

The intention of the committee: The principal objective of the committees is to develop a board report describing the risk management of the global economic situation. Primarily the key risk arising due to Covid-19 is mentioned. Thereafter the obstacles in the path of the activities of the organization are defined. An appropriate mitigation strategy has been developed to overcome the consequences of the risks. Finally, the recommendation is provided to all the board of directors including the CEO to improve the working strategies.

Summary of present achievement and recent actions: ASDA is known to be delivering the best quality products for which it was awarded more than 92 awards and in the year 2019 it was declared as the best retailer. In the previous year, it was run as the second-best retailer and at present, they are working hard to produce the best meat and vegan products in all the nations of the world. ASDA has been awarded specifically for many of the food products as they are mostly liked by their customers. At present, the head of ASDA is planning to sell the petrol station owned by ASDA along with some of the dispensation stores.

List of activities in progress and upcoming events: Recently the chief executive of ASDA has announced that they are going to provide work from home facilities to their employees post Covid-19 situation to decrease the unemployment rate. Employees can choose according to their flexibility as they have permission to work from the office as well. The vice president of ASDA claimed that to increase the productivity of ASDA, a hybrid working model is implemented according to the requirement.

2. Key Risks Affecting ASDA from Covid 19

The worldwide spread of the corona virus pandemic has obstructed the growth of the UK retail market brand ASDA. The retail supermarket is facing some serious issues related to its operational management as the normal life of people as well regular operation of the company is hampered. Risk disturbing the operational management has created serious implications for the company (Moazzam et al. 2018).

The people coming to shop in ASDA supermarkets are required to be restricted as overcrowding of the supermarket may cause the spread of the disease. One of the major risks for the retail brand is to restrict the shoppers and regulate them so that they remain safe. Earlier the supermarkets had a lower amount of space which was causing problems for control the flow of shoppers as well mandatory social distancing guidelines were not becoming possible.

The stores had problems in installing display screens in crucial areas of the supermarkets. The screens were supposed to help the customers in finding their desired products as well assisting the customers with directions. As per the studies done by Zhao et al. (2017), people are afraid to come outside of the house for shopping and are even unwilling to buy food items from stores.

More preference for online retail delivery services is the key trend in the market which the retail brand is required to follow. The existing model of business of ASDA was more of a traditional concept and transformation to a contemporary formation required massive changes within the organization. Only a small number of people are now reaching the stores looking for products while they can purchase similar products through online based retail services.

Barriers in key areas in the stores are affecting the flow of customers in the supermarkets. According to the study of Jones and Comfort (2020), the strong regulations over maintaining the social distancing within the market are strictly maintained causing disruption in the operational management of the retail brand. Cleaning of the floors and the whole stores is mandatory in this pandemic situation which has caused an increase in operating costs for the company.

On the other hand, increasing cleansing regimes for the payment desks was instructed and dedicated workers for cleaning was fixed. These situations generate the most vulnerable workers who are required to pay more and many workers getting affected due to the virus generated shortages of workers for the company. On the other hand, shortages of workers hampered the business operation of the company, restricting its growth of the company.

The retail supermarket brand ASDA is required to cut off its employees due to getting affected by Covid 19 has forced the company to run with the existing company. Operational efficiency as well the overall productivity of the company was found to be lower as compared to earlier times.

The company was unable to reduce the salary due to humanitarian grounds as the workers provided leave with wages during this time. As per the studies done by Zhao et al. (2020), the recessionary impact on the economy generated by the unprecedented pandemic situation has disrupted the business operations of the company. Financial operations of the UK retail supermarket were disrupted causing funding challenges as well accountability problems.

Reduced capacity of retail outlets lowered the productivity of the company, and training programs for the workers were required to employees to carry out effective service to its customers.

ASDA is facing issues related to reverse logistics that the company is witnessing during the last few years and that has been engraved in recent times. The retail market brand deals with a variety of consumable products and the moderate guidelines of return of the product facilitate the consumer to return the defective product to the supplier or manufacturers.

The imposition of lockdown has lowered the sales of the consumer products that caused issues regarding the completion of manufacturing products as well returning defective items to the suppliers. According to the study of Ying and O’Clery (2021), carrying out reverse logistics is a complex procedure and it is found to be tricky in the pandemic situation as direct customer interaction is reduced. Furthermore, a huge number of electronic products and appliances constitutes a huge amount of reverse logistics for ASDA, which can be found bigger in this situation.

The products returned from the customer for repair or exchange, and in some cases, ASDA is required to take complete responsibility for the products. Developing contact with the manufacturers or suppliers of the returned items demands a serious amount of time as well as adequate management procedure.

Failing the process through chaotic management in the process of the reverse of procedures impacts in costing millions of pounds to ASDA every year. As per the studies were done by Power et al. (2020), the reputation of the company is massively hurt in case of delay in reverse logistics as customers value the exchange or repairing of the products highly.

Customer retention of a company depends on these aspects as it impacts the satisfaction level of the consumers. ASDA is working in these areas to bring effective changes that will help in smoothing the process. According to the study of Oyeagu et al. (2021), the customer retention service of a company is crucial as it helps in repeated transactions from the same consumers helping in the growth of the company.

Furthermore, ASDA is finding issues promoting more customer interaction in this situation as customers are less frequent in visiting the stores. The retail supermarket brand is finding new possibilities to reach out to the customers generating more footfalls in the stores as well in the online website of the company for product shopping. Furthermore, it decreases the efficiency of the company towards the delivery of repaired or exchanged products to the customers.

The administrative process of the UK retail brand has been stalled in recent years that caused the stagnation of growth in the business. As per the studies done by Safa et al. (2021), the administrative process overlooks every aspect of business operation for a company so that centralized instructions can be provided.

However, the prevalence of corona virus pandemic situations has raised different situations in the different locations so that central instructions are not that effective for the stores. The need for individual concentration on separate stores along with specific instructions is required in this process and the inability to provide such guidance in creating instability in the organization.

On the other hand, the retail market brand is securing a few of the stores that perform well in the market and maintaining a separate administrative team that emphasizes the issues and challenges faced by the supermarket outlets.

The retail market brand of the UK is building a road map that ensures the standard operating procedures of the organization adhered to with each investigation. Implementation of this system will enable any person who takes over a specific case to review the designed road map and identify the exact stage in which the investigation has remained.

The main intention is to ensure the security of the business operations of the company which will be going through increased scrutiny for effective continuation of operational management. According to the study of Leung et al. (2021), risk analysis management of an organization is capable of providing efficient assurance to the operational management through identifying the future risks and enabling the organization to assess the situation from beforehand.

A data analytics team has been formed that has focused on accurate data collection and identifying the future trends that will pose a threat to the retail brand.

ASDA deals with the online sale of consumer products, and the returned products from the consumer side were seen to be increased, which further makes the process complex within the reverse logistics. Maintaining and processing reverse logistics has become an operational issue for ASDA which requires consistent concentration to improve the scenario.

As per the studies done by Boons et al. (2021), operational management requires a consistent effort in a sufficient manner that maximizes the potential of the company. On the other hand, thousands of products are disposed of or dumped in warehouses of ASDA due to the absence of systematic and effective processes of reverse logistics.

This is further creating trouble for the company as it is increasing the cost heavily on the finances of the company. This improvement is required to avoid loss in this depression condition in the economy.

Lack of operational effectiveness within ASDA has failed to follow the Grocery Supply Code of Practice of the UK. Delayed payments from the retail supermarket giant of the UK have generated a serious issue for small suppliers in the UK market of UK.

According to the study of Westcott et al. (2021), inconsistency in operational management leads to burdening the cost structure of a company and the effectiveness of the organization is massively hampered. Ineffective supplier connectivity was seen in recent times that lowered the competitive advantage of the company in the market.

3. Impact of the Risks on Activities Performed in ASDA

Low improvement in reverse logistics

ASDA is counted to be one of the most efficient relations in the UK along with the capability to maintain its huge position in the market. As stated by Buica et al. (2017), the retailer is known to be able to satisfy their customers according to their needs in a short period and is facing issues in recent times. In addition, the implementation of online trends has increased its business and made most retail shops in the UK, yet not able to improve the reverse logistics (Hilorme et al. 2019).

To maintain their reputation among the customers ASDA has been noticed trying hard to sustain their business. Both the new and the present customers’ involvement in the business cannot be increased accordingly.

Customers are found to be giving back the products that are defective to the retail company. Electric-powered devices are the main part of reverse logistics and are mostly noticed to be having defects. As mentioned by Tsintsadze et al. (2019), the products are returned by the customers either for repair or exchange and ASDA has to perform reverse logistics complicated methods.

Due to the increase in defective consumable products the reputation of the companies is decreasing continuously. As a result, the effectiveness of ASDA is reducing at a noticeable rate along with the increase in the maintenance cost.

Poor association with the suppliers

The association between ASDA and the product suppliers is not appropriate and results in a decrease in the quality of the products. According to Monteiro et al. (2020), many suppliers are working for ASDA and hence they are not able to maintain proper connectivity with all of them.

The negative impact of unhealthy communication with the suppliers is the delay in delivering the products to ASDA which harms the image of the company to the customers. The complication in the management system of ASDA does not allow it to provide remittances to the suppliers within proper time. Small suppliers in the UK market face maximum problems due to the delay in paying their salary.

The retardation in payment of the distributors minimizes the working attitude of the suppliers towards ASDA and therefore is not able to deliver the products within the required time. Similarly, the retailers fail to meet the demand of the customers which forces them to switch to other retailers present in the UK market.

Although the company has been customer-friendly, yet it is not reminded by the suppliers due to their poor behaviour towards the suppliers. As stated by Mohamed (2017), they do not prioritize the suppliers as one of the main assets of their company and thus are not supported by the suppliers. It has been claimed by main suppliers that the grocery supply code of service is not followed by ASDA.

Increase in wastes

The business of ASDA is seen to be increasing for a longer period which gave rise to the problems in the operational management of ASDA. They are not able to have control over the depository and directory and have to face the consequences of failing to fulfil the requirement of the stores of the UK. As urged by Kaut et al. (2018), they do not have the proper maintenance of the list of items needed to be delivered to the particular stores; there is a huge waste of food which is still not solved by ASDA.

They do not have enough capability to provide space to the endangered food items and have to face huge amounts of loss. The dedication of ASDA towards its business is miss conceptualized by the customers and may give rise to company’s loyalty. In the present competitive market, ASDA has the risk of losing its position and provisioning other retailers to pursue its business in a better way.

Less availability of fresh products

The change in the climate of the UK has affected ASDA badly as there are difficulties in preparing, delivering, and acquiring. More than 94% of the ASDA fresh products are at risk and the issues are noticed to be increasing continuously (Edie.net, 2020). The increase in global warming puts ASDA at risk for their business due to the unavailability of fresh products.

ASDA promises their existing customers to deliver fresh products as they claim to believe in providing healthy foods. The trust of the customers is directly affected as the company fails to produce and deliver fresh items.  As per the view of Nurgaliev et al. (2019), the company is not able to cope up with the changes and is simultaneously affecting the relationship with the shareholders such as distributors and customers. In addition, ASDA has been trying for many years to decrease the rate of emission of carbon and is not able to evaluate any actions.

Employee cut off

The Covid-19 has made a negative influence on the operational management of ASDA which forced them to decrease the number of workers. To stop the spread of the life-taking virus the higher administration of different nations throughout the world has taken initiatives to maintain lockdown.

At this point, there was nearly no transaction of products between the distributors, company, and their customers. As mentioned by Vornicova (2018), ASDA has to face huge losses and is not in the position to afford many numbers employees and has to cut off some.

The employees who were still there for ASDA were not paid completely according to their hard work as the company sales rate has decreased accordingly. According to the view of Yu et al. (2020), the maintenance cost of ASDA has increased as they have to sanitize all the surfaces present in the stores multiple times as well as maintain hygiene in both the internal and external environment of the company.

The unemployment rate increased in the UK which has a direct influence on the economic status of the country. Despite having effective skills, the employees were unemployed and it became difficult for them to live a healthy and panic-free livelihood.

Shorter technological improvement

Implementation and management of online trends play an effective role for retail businesses like ASDA. According to Zakharchenko et al. (2019), the online technological advancement of ASDA is not updated in comparison to other retailers such as Sainsbury which affects their selling rates. Customers in recent times mostly prefer to buy consumer goods online as it provides them more advantages.

In the case of ASDA, the customers do not get the complete opportunity to order online food products due to unavailability. The respective retailer does not provide all food options on online sites which are counted to be a drawback of the company.

The implementation of radio frequency identification (RFID) has not been able to improve the digital service of ASDA. The scanning technology of ASDA is yet to be implemented in all the stores. As stated by Poberezhny et al. (2021), the productivity of the business is hampered as the company is heard to be not familiar with the recent technological machinery.

The official websites of ASDA are not on good terms which create difficulties for the clients to operate their sites properly. Diversification in the outlets that do contain non-food items is not done by ASDA as well as they do not have the technological improvement of tracking the delivery system.

4. Financial Risks

Financial risks in ASDA cater for the possibility of losing money on investment or ventures including credit risk, liquidity as well as operational risk. The risks assessed by the firm can be identified as:

  • Market Risk:

ASDA has a weakness in limited global presence as compared to its competitors in the retail industry. However, the restricted business entry has catered for the inability of ASDA to enter various countries due to high competition from local vendors. As per the views made by Daghar et al. (2020), the oligopolistic marketing structure followed by the retail company has provided dominating competitors in the retail market.

However, ASDA produces homogenous goods in comparison to its rivals; with the decline in in-store baked bread having declined 1,200 jobs have been axed. This has not only caused the loss of employees but the loss of revenues for the company. This has catered for the operational behavior of the firm carried out by promotional activities and advertisements.

  • Credit Risk:

As ASDA tightens the term loan pricings and accelerates syndication, it has reverse-flexed by backing out from the buyout. The competitive nature of ASDA on the completion of the deal had planned to sell the forecourt business subject to clearance from the competition and market authority.

As per the opinions made by Guo and Wang (2019), the transitions made by the authorities on the regulatory takeover of ASDA have enabled ASDA to continue the distributional assets and have no impact on the supply chain or workforce. Automation of the credit risk workflow has been important for the system as a prerequisite for credit departments.

  • Liquidity Risk:

Funding liquidity risk and market liquidity risk both types of liquidity risk are faced by ASDA. As per the view of Negara et al. (2020), the liabilities of ASDA are seen to be not funded by the corporation. In case of market liquidity risk ASDA is not noticed to be not able to recover their position in the financial risk.

One of the main reasons for such risk is the unavailability of proper structure of ASDA. There is less presence of interested buyers parallel those buyers are noted to want to decrease the price of the market making liquidity risk for ASDA.

  • Operational Risk:

ASDA is noticed to be not emphasizing the local small businesses which are increasing in demand in recent times. As stated by Boons et al. (2021), shoppers are found to be purchasing the products that are needed to meet the demand of their customers. Due to the pandemic situation, the shoppers have shifted to small businesses which decrease the sales rate of ASDA.

Being one of the ‘Big Four’ supermarkets in the UK, ASDA still has to face financial risks. Despite facing an economic crisis during the pandemic period ASDA is noticed to be keeping all the promises which did not allow them to gain profit. The operational management system of ASDA is found to be working hard to minimize the maintenance cost of the company yet have not been able to succeed completely.

5. Mitigation Strategies for the Risks

Covid-19 has left the retail stores closed except for their online services provided to the consumers to continue to adapt to the new normal. Risks after the disruption of the covid-19 pandemic have taken over the advancements made in the firm of ASDA, not completely yet the organisation tries to thrive in the market. The risks that have been identified as the key drivers of disintegration in the organisation can be mitigated by the following:

  • Consultations from all Stakeholders

Consultations from all the stakeholders starting from their own employees will cater for the assessment of risks depending upon the feedback received. Consulting and communicating with stakeholders help changes in the maximisation of success for a firm or management group (Moazzam et al. 2018).

Effective communication with stakeholders being crucial in assessing and monitoring risks will keep ASDA informed with relevant information to help in the progress. This will help in overcoming unexpected challenges other than the disruptions caused by the pandemic such as different other vulnerabilities the firm is exposed to.

  • Consultations from Health Department

Consultations from the public health department, NHS and other public authorities of food and union partners will allow ASDA to gain a competitive edge. As per the views made by Xiong et al. (2021), consultations from various public departments cater for the affairs maintained regarding public health and safety as well as management of regulatory bodies.

These consultations will help ASDA in understanding the risk of the post-pandemic situation to build sustainability for both the future and the present. The consultations will eventually cater for a better understanding of risks in the community and their prevention.

  • Resilience in Managing Trade and Industry Bodies

The flexibility gained from being resilient should be maintained in managing trading and industrial bodies improvising ASDA’s teamwork and creating a positive approach. Resilience in the management improves problem-solving capabilities as well as innovation in the firm decreasing risk.

As per the depictions made by Jones and Comfort (2020), the maintenance is complemented by business continuity to ensure organisations plan to inhibit the performance of the employees and their ability to innovate. The fusion of resilience in maintaining sustainability can build stronger risk management forces for customers, investors, the supply chain and society.

  • Implementing Social Distancing Guidelines

Implementing social distancing guidelines in supermarkets have catered for the avoidance of crowd to prevent the further spread of corona virus in the United Kingdom. As per the views opinionated by Ali et al. (2021), with enhanced safety measures while people are trying to adapt to the new normal it is necessary to have protection maintained.

This may help ASDA in becoming safer for people to visit without the fear of getting infected by the virus. However, the use of checkout screens and aware shields have benefited people to maintain distancing. This will help ASDA in engaging existing as well as new customers helping with their revenues.

  • Maintaining Hygiene in the Workplace

The maintenance of hygiene in the workplace of ASDA will ensure the customers as well as employees their safety there. The implementation of social distancing, aware shields, and checkout screens has helped the firm to gain the trust of employees and customers after being named as the safest place to shop during the pandemic.

As per the views made by Jones and Comfort (2020), the one-way systems in the firm had enabled the store to provide a safe haven during times of crisis. The same should be maintained post-pandemic to stop the spread of the virus new strains being found recently.

  • Managing Oversight with Monitoring Programs

The oversight management of the store will help ASDA in making sure that the employees and customers are safe from each other. The regular supervision of the employees with control measures to their health conditions will help the firm in maintaining a hygienic environment.

However, the management teams should be guided more than before with relevant guidelines to ensure compliance from underlying risks (Mawdsley et al. 2018). The firm should reduce the capacity at the super marts to create a barrier between human contacts to enable staggered work patterns for the employees. The firm should provide work from home to employees whose work can be done remotely.

  • Evaluating Risks in Workplace

The evaluation of risks in the workplace should be done to stay aware of the underlying risks other than the pandemic. As per the depictions made by Behzadi et al. (2017), the risk assessment plays a very important role in the formation of an integral part of the firm and occupational health.

The identification and assessment of the risks determine the controls needed for a hazard to reduce the severity of the risk. This will help ASDA in gaining control over the unidentified risks in the organisation associated with cost, innovation and quality control. The productivity of work increases as well by the advent of innovation and health parameters among the employees (Sacks et al. 2019).

  • Advancing the Supply Chain Management

Disruptions caused due to the pandemic adversely affected the supply chain management especially the reverse logistics of the company. As reverse logistics is a vital part of the e-commerce sector often used by ASDA to deliver products online can be advanced to cater for the issues in their supply chain. As mentioned by Naidoo and Gasparatos (2018), the reverse supply chain or logistics can be advanced with the advent of technology and globalisation.

Safety measures alongside the technology of artificial intelligence, IoT, machine learning and others have provided the deployment for business continuity. The influx of equipment manufacturers has been advanced from their previous versions. As the lockdown in the United Kingdom eases, tech-driven scanners have catered for the assessment of technology and practices.

  • Better Inventory Management

The pandemic stressed the supply chain despite the planning on the inventories to hold the network levels for its management. Better inventory management can be done with the help of fulfilling short-term demand data first, adjusting the slotting by gaining accuracy through WMS processes.

This can help ASDA in capturing and verifying the processes to gain better control of the inventories from rush-buying and excessive ordering of products. Making one-time adjustments has been beyond the reach of companies to ensure accuracy in the warehouses with forward-pick areas slotted for better efficiency (Shi et al. 2018).

This can help ASDA in monthly planning of their inventories based o their weekly sell-outs depending on the demands.

  • Appraising the Net Present Value

ASDA follows the appraisal method of calculating the net present values based on the company’s cash flows excluding the initial layout. The company can increase their net value by the factors of the timing of their expenditure ad discount rates. They can achieve a higher net value by lowering the discount rates than the expenditure rates at specified timings.

As mentioned by Naidoo and Gasparatos (2018), gaining a higher NPV cause the company to gain a higher cash flow making higher revenues than the expenditure made. This will help ASDA in gaining an unambiguous measure of revenue and investment size with a competitive edge against its competitors as well as ease of calculation.

  • Increasing Profitability by Payback and Internal Return Rate

The financial risks can be overcome by the help of gaining a higher net present value and increasing the profitability of the company with the help of payback methods. In addition, an increased internal return rate will help ASDA in making positive investments.

As per the views of Alimohammadlou and Bonyani (2018), the considerations of the increased value of profitability takes the cost capital and risk inherency into consideration. This will help ASDA in looking out for risk assessment while increasing their payback methods in recovering the original amount invested (Hecht et al. 2018). This is done by calculating the internal return rate to find the ratio of the present value of the cash inflows in the company.

6. Recommendation to the Executive Director

Certain recommendations for the Executive director of ASDA are given below:

  • Appreciating customers purchasing pattern

Customers’ buying behaviour depends on the latest trends; in the case of ASDA, it is dependent on the health of an individual. According to the view of Faubion et al. (2018), the executive director of ASDA needs to target the customers and produce the products accordingly.

Different groups of people prefer different kinds of food such as Childers prefer chocolates more than middle-aged ones. The purchasing pattern of the locality depends accordingly for which the director needs to take initiatives of making market surveys to understand the purchasing pattern of their clients.

  • Maximizing the sales

Different types of latest trends, as well as innovative market strategies, are to be discussed among all the directors of ASDA in such a way it can increase the sales of the retail. As urged by Grundy et al. (2019), the stores, as well as the online sites, are to be designed in such a way that it attracts the customers and make them stay engaged with the business.

Marketing needs to be done appropriately with the help of both online and offline media. Discounts and offers are required to be declared by the company heads such that they can increase their sales. Marketing needs to be performed daily in different online media such as Facebook and Instagram as there are more customers under a single roof (Grundy et al. 2019).

Advertisements are to be made in such a technique that the buyers find it essential to purchase it and needs to be based on the target customers.

  • Enhancing customer service

One of the most recommended suggestions to the executive director is to enhance the customer service for the welfare of the business. As mentioned by Brauer and Wiersema (2018), the approaches are to be made by ASDA in such a way that customers do not find it difficult to follow them.

The employees are to be educated and trained after a certain period to upgrade their skills to attend to the customers in the best possible way. The new employees are to be trained such that they can behave properly as well as help them according to their requirements.

  • Introducing authority of new products

Continuous up-gradation in old products is not always sufficient enough to maintain a strong number of customers. Initiatives need to be taken by the head authority of ASDA to try to enter into the new market together with the addition of new products in the old one.

According to the view of Erdelj et al. (2017), the new products need to be based on the feedback of the customers and are not found in the competitors’ list. This makes the customer revisit the stores along with an increase of profit in the business. There is a requirement of the appreciation of the customers for the new products.

7. Recommendation to the Board of Directors

The advent of corona virus and its different other variants in the whole of the United Kingdom and the organisation of ASDA. As per the views made by Alimohammadlou and Bonyani (2018), the framework of Board Directors being behind the efforts of connecting, owning, rewarding as well as exemplifying will cater for the durable value of a firm.

However, with the risks assessed, the following can be recommended to the Board of Directors:

  • Emphasising the Corporate Governance

The well-functioning Board of Directors are in need of foresightedness and seasoned judgement to incorporate with the balance provided to the groups in supporting the management. This can be achieved throughout the crisis with the help of renovating the corporate governance of ASDA across the stages of resolve, resilience, return, reimaging and reform (Umar et al. 2017).

Focusing on the needs and demands of customers, employees, stakeholders can be challenging to balance in the scarcity of time without resolving and being resilient. The notion of being resilient towards the present global norms should be the priority of the board members to support the crisis in the management team.

  • Better Communications with Stakeholders

Communication gaps with stakeholders create risks within employee’s safety, shoring the balance sheets as well as impacts the interaction with suppliers and customers. Gaining an understanding of the objectives and goals of the stakeholders for the organisation is a necessity for the board members to support their delivery for the firm.

As per the analyses done by Shin and Park (2019), good communication with stakeholders is important to put a positive impact on the success factors of the company ensuring relevant needs and demands. The initiative changes are necessary to be informed and discussed with stakeholders to cater for the resilient changes in corporate governance.

  • Catering for the New Social Norms

The board members should cater for the new social norms of social distancing and lockdowns to prevent losses of lives and livelihoods. However, with augmented leadership capacity of the members can strengthen the decisions made in crisis management.

As per the opinions made by Trafialek et al. (2017), the external shocks of the pandemic, as well as financial risks in the firm, has affected the supply chain systems. The new social norms should be practised with the incorporation of promotes for all executives to make reliable guides ensuring their decisions weigh the relevant factors affecting the efficiency of the firm.

  • Betterment of the Supply Chain System

The board members should look out for advancements in the supply chain system that has been disrupted due to the outbreak of the corona virus pandemic. As per the studies made by Shahbaz et al. (2020), the supply chain of the firm is crucial despite the reverse logistics of ASDA being not up to the mark.

It may be recommended that the significant losses and shocks to the supply chain system can be advanced with new trends by localising stocks, visibility in real-time, optimising the stocks and being diligent against the disruption.

8. Conclusion

The above report is based on operational management risks of the company ASDA, affecting its economy. However, the notion of the emergence of the global economy from the biggest disruptions as the pandemic of corona virus. Regardless of the pandemic, the innovations in the retail industries catering for the gaps in the supply chain incorporating with new business transformational plans.

The focus on shrinkage of revenues of ASDA has been consistent due to the changed social norms of social distancing, lockdowns as well as risk management systems in providing real-time data. The above study has concluded on the notion of key risk activities and their impact on the organisation.

As jobs are at risk in the new transformational plans, the report has found the key risks of online investment drive, major restructuring in the organisation. These risks have been consistent with the organisation due to worldwide outbreaks of different variants of the corona virus.

The report has analysed the financial risks to the organisation to cater for mitigation to develop business plans without risking jobs. Moreover, recommendations for the Executive director as well as the Board of Directors have been included for maintaining the sustainability of ASDA by mitigating the underlying risks.

References

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