Briefing notes by considering economy, ethical, legal issue on Asda Retails Limited


I consider myself as a research analyst of a famous company of UK named Asda Stores Limited. IT is a British super market retailer which is a subsidiary of a famous American retail giant company named Walmart.  A business may have many factors in which it will have an impact upon. Asda company also have  many factors that impact upon like political, economic, legal, technological, social, ethical etc. I do my analysis by considering single economic, ethical, legal issue Asda Stores Limited.

-  Economic analysis focus on  the nature of the competition faced by the company and its service. Asda has a great economic impact for brexit issue which lead a recession to the economy of UK.

- Business may face multitude of ethical issues. Supplier issue is most fundamental ethical issue. So, Asda must maintain relationship with the supplier in a way that is comply with the Walmart high standard of business practice to ensure ethical trading.

- Asda must be comply with laws and regulation of the UK and the supplier’s country which provide as an evidence that it do better than that of its competitors in the industry. 


Briefing note 1:  Focus on an economic issue that learned about in class.

ASDA will continue to face many trends in which it will have an impact upon. Recently a matter happened in the UK named ‘brexit’  has a great impact on retail store economy like ASDA. ‘Brexit’ stands for a situation where voters decide to leave the European union (Ponzano).United Kingdom find economic slowdown after the decision to leave European union and that possibly leads to recession.  The question of how brexit will affect the economy is one of the crucial issues now( financial times)

 Leaving EU has a consequence that lead to a unprecedented situation to the British retailers and consumers undoubtedly . According to a survey published on July 11 there were also a fresh  symbol of fall of consumers spending in Lndon. AT the very immediate aftermath, bexit vote dumping the confidence of the consumers  which lowers the economic spending and lowers the number of sells. Thus Asda was affected in short-run for the decision to leave EU and posted slowdown in quarterly and also mention that consumers spending was at the lowest level from two years.

In the medium-term of the effect of brexit, the cost of goods purchased was become very costly .So, then  a debate may rise among retail the companies weather to increase price of their product or to absorb loss into marine.. So, many customers can not afford to be choosy anymore.It may lead success to ASDA as it is the subsidiary of Wallmart  which has a motto of save money, live better. Cut-price policy of  the company helps to pick the customers from its rivals.

In the long-run, it will lead a positive signal for ASDA in the long run. In the long run the key considerations will be: the retail sector dependent on non UK workers and retailers will find potential business opportunities in business.

 When times get tough, Asda which is a subsidiary company of world toughest discounter company Wal-Mart, remind us that even a recessions have winner as it did a great job by cutting price policy which attract more customers than its competitors.

Briefing note 2:  Focus on an ethical issue that learned about in class.

Ethics includes a brunch of philosophy that consist many things which have a great impact in everyday life. Business have the responsibility to establish  codes of conduct and ethics that  every member of the organization must be abide by and put into actions (Carter 191-208). In the complex world of 21st century, like other business Asda face a multitude of ethical issue. The  common and fundamental ethical issue and challenge that faced by the companies and their employees is supplier issues(Supplier relationship on the business of UK; ethical practice in business), (IBE, (2006)

Ethics at Asda

Asda Policy on ethical trading is to ensure that customers are satisfied with their products and services. Thus when  customers buy from their shop it must be ensured their customers that they are buying the goods from their store without exploitations and in sustainable and acceptable working conditions and through this believe customers will satisfy with the company. 

The goal of this policy is that all the suppliers of the company should manufactured the products that they provide under areas covered in the standard with the minimum set of internationally acceptable conditions for employment.  This policy is known as a ethical, universal and auditable policy at a time . Suppliers of the company must follow this law to consistent with the Walmart standard of business policy and to comply with the  laws and regulations applicable in the supplier’s country.

Another thing that is concerned with the supplier issue is that ASDA need a healthy relationship with their supplier base to in order for their business to work and to accordance with the policy on ethical trading. Higher level of challenges and higher level of collaboration of  the companies helps to form the healthier relationship with the suppliers and the company. Company believes in effective supplier base that means expecting a lot from their customers. The company has a  aim to treat the suppliers with respect whilst maintaining their goals as a champion of the customers, the company challenge the suppliers to support the purpose of making goods and services affordable for everyone.

Briefing 3: Focus on legal issue that learned about in the class.

With Asda they must follow with the laws. According to the employment protection act, Asda must make sure their employees information and security details are safe only manager can  access the information by maintaining proper precautions  and it is also applicable for payment detail questions . If not with the employee protection act, this would be bad things for their business and would also cause a bad reputation to their partners and customers.

A legal battle was happened in 1968 as men work in the factory considered to do more skillful job where women are considered to unskilled labour. Thus men should paid more for this thinking.

The women are then took the action and went through a process which led to equal payment by the Equal Payment Act of 1970 led by a woman named Elieen Pulle. Under equal employment law, payment for the staff  should be equal for employment of equivalence job.

Though women got victory of establishment of Equal Payment Act, there still remain a problem of gender gap. Many business are concerned as they think it may lead extra costs . Recently BBC news reveals a news that ASDA, the second largest retailer of UK, is facing a mass legal action by women who work in their stores. Women work in the company claim that though their jobs being of equivalent value, they are not given the same payment that male workers are paid for their working in the distribution warehouse. According to a store worker the works are the same for the shop and the warehouse like put stock on shelf and work such as packing and unpacking of foods, cloths etc. Thus, women consider they deserve the same payment as the man work in warehouse.


Asda has signaled that it will fight the claim strongly as well as vigorously and it also mention that that it does not discriminate the women work in company as it has a strong  policies to treat  all the staff work in the company equally.  It is  sometimes very difficult to compare the earning of the employees if the employees undertake the worker which is very different.  The legal authority also investigate how the retailers of the company decide what should be the payment of their staff for involving with different parts of works. The work in the distribution warehouse  sometimes harder not only physically but also often from the outside- found by a source.

Sometimes it is think that payment for equivalent value is a matter of judgment, so, that is where the battle lies. But, to survive in a competitive market, in making sure that, Asda is better than that of their current competitors must always do better( their price, their profit and sells) then them by abiding laws and regulations.


Where all retail company has greatly affected by brexit event, Asda serves a purpose when consumers can not to be afford to be choosy. Here is an important information to mention that recently a resesrch find  Asda increasing its sales faster than its main competitor from the past three months. Asda maintains a healthier relationship with their suppliers to ensure the quality of the product that helps for the ethical trading. Supplier issue that means maintaining supplier relationship in business ethics is one the crucial issue In UK business company. For the success of the business, Asda must give the high priority that it is comply with the law. Debate may lies over with the validity of laws on various unprecedented dituation. But, company should try its best o comply with the law.

Asda is one of the leading retail company in UK.  Though Asda is even a large and leading company in UK, it must be both very vigilant and conscious about the activity of competitors, prices they set, technology they use, productivity as well as ethical and economical issues and the impact of government regulations. Asda works hard to comply with the situation that arise by ensuring profits so that they can survive as a leading company in future. 


Basta, L. (2004). Ethical Issues in the Management of Geriatric Cardiac Patients. Ethical Issue: A terminally ill colleague asks for a prescription for barbiturates to commit suicide at the time of need. The American Journal of Geriatric Cardiology, 13(2), pp.92-94.

Carter, C. (2014). Ethical issues in international buyer–supplier relationships: a dyadic examination. Journal of Operations Management, 18(2), pp.191-208.

Fredrick, R. (1973). The Equal Employment Opportunity Act of 1972. Stanford Law Review, 26(1), p.240.

Matti, J. and Zhou, Y. (2016). The political economy of Brexit: explaining the vote. Applied Economics Letters, pp.1-4.

McCrudden, C. (2011). Equal Pay for Work of Equal Value: the Equal Pay (Amendment) Regulations. Industrial Law Journal, 12(1), pp.197-219.

Ponzano, P. (2016). Borderless Debate: After Brexit, What Will Happen? After Brexit, What Should the European Union Do?. The Federalist Debate, 29(3).

Regan, K. (2016). Modern law: the law transmission system and equal employment opportunity. Choice Reviews Online, 31(07), pp.31-4057-31-4057.

SELLING, J. (2012). In Search of a Fundamental Basis for Ethical Reflection. Ethical Perspectives, 1(1), pp.13-21.


Get an Instant Free Quote Today