Overview of ASDA’s Stakeholders, Customers and Employees
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Published: Wed, 13 Sep 2017
Key Stake Holders:
ASDA relies on customers to gain profit every year. Customers are also massive influence because it shows the company what item/items is wanted more. This will mean that the company will have to provide for the customer demands. It is key for the company to keep customers going to their shop because they do not want them to switch.
Customers may conflict with Suppliers due to the fact that customers would want the good supplied to be cheaper. Some suppliers may refuse to sell their products cheaper due to the fact that the goods and the ingredients may have cost them a lot to make the product. This may cause the customers to move to a different brand/company (Tesco). This will affect the company with it’s profits. This shows clearly that the costumers have a key influence on an organization such as ASDA .
Also if a company does not take in some sort of community activity it can cause some backlash from the public. ASDA sometimes do coupons for shoppers that are usable once collected enough for schools. The schools can use these coupons to help bring in equipment for the children to use in school which will help them improve their teaching.
Employees are the most important asset of a company. Allowing employees in the say in some important decisions is vital due to the fact that they have face-to-face communication with customers. Which can help them make decisions that will help the improvement of the company and gain more customers.
If the company motivates the employees and gives them appropriate training for their job, this can improve the efficiency of the employees work which will help them to respond to customers with better customer service.
Allowing employees to have some power at making decisions and take on more responsibilities will help improve the amount of work given by the employees which may increase profits for the company’s.
ASDA offer the customers many products and items. To get these items that they can sell. This is where suppliers become a massive influence. They provide all the products for ASDA as they want to help the business sell the products and in return to get some of the profit made from the company. ASDA tend to go for the more popular supplier as it is what the customers demand. If they did not do this, it can lead to the company losing out on profit.
Suppliers can heavily influence on how much ASDA profit each year. This can be broke down to a few categories such as;
Quality of the products –
If the quality of the product is good then ASDA will gain customers satisfaction and this will mean that less customers will return the products. This will gain ASDA profit because the customers are happy with the product and will spend their money. However, if the supplier supplies ASDA with low quality products then it can cause the profits to decline.
Time to move the products –
The time it takes to move the products can cause customers to change organization. If ASDA are unable to get products to their stores on time it can cause the customers to think that the company is not reliable to get products from.
This means that Suppliers have a massive influence on ASDA by the quality and price of the products they sell to ASDA along with the movement of the products can cause problems too. If some products are not popular, the supplier can control ASDA by making them pay more than the usual rate just because the productivity of the product is lowering.
However, ASDA has been able to control this by making their own products which can pass the time for the wanted products. They also want suppliers to work together in order to reduce the cost of products, the amount of waste created by making the products and the risk of making the products.
Owners have the most influence on how ASDA influence on other stakeholders that help ASDA make a profit.
There was an incident where the owners were not paying the employees or giving them bargaining rights. This caused for the employees to go on a strike, this can lead to stores being closed down for a certain amount of time and products being delivered to customers to take longer then expected. This may cause some products to lose its quality and customers to switch to a different organization because they were more stable than ASDA
Another incident with owners decisions was that they got rid of quite a lot of employees. Which caused many problems, it made the employees to lose their jobs. Who also may be customers at ASDA, they will move to a different company. It can also cause mass protest against ASDA which will cause Customers to stop shopping at ASDA.
However, Owners can influence ASDA in a better way like trying to make certain products which are in demand cheaper. This will bring in customers that normally shop at other places to go to ASDA due to the impressive prices of products.
They try to join in local activities or supply the activities with goods or money, this will spread a good word around communities that ASDA is a good shop and their products are at a good quality.
Trade Unions –
Trade unions are organizations that are formed, financed and run by their members in their own interest. A union must be independent which means that it must not rely on an employer for funds and facilities for the organization. It must show that I can provide for its members and is able to sustain itself during disputes.
The main trade union for ASDA that is promoting itself in and around the internet seems to GMB Union. The Union is the most recognised to ASDA this allows members and representatives to have a say on their workplace issues. This allows the employees to raise both local and national level.
Trade unions can influence certain other stakeholders (Employers) to take a strike. Which can cause a massive effect on ASDA as seen above on (Owners). This is because the union has discussed about the way the employees are being treated and decided to take action. Strikes are a good way to gain the owners attention.
Trade Unions are the most effective way to stop an organisation. So ASDA make sure they keep their employees happy otherwise it can cause them to lose massive profits.
Employers Association –
This is similar to Trade unions but for employers, representing the interests of employers in specific industries.
Employers association is an organisation for the employers which seek to coordinate the behaviours of their member companies during negotiations with trade unions or government bodies.
Therefore, if can influence employers to try and stop trade unions doing strikes which will affect the business. By asking the association for help and guidance before make an appropriate decision which may affect the profits of the company.
Local Community –
Local communities are internal stakeholders for ASDA. This is so that people who live in the community can work for ASDA. Also if ASDA is going to cause problems to the communities then they can have a say in what is happening.
Local Community may be influenced by ASDA because they open up new stores regularly as seen above which will create many more jobs in the local area, this will lower the unemployment in the area. Additionally, it can also be a bad idea opening up more stores because it can cause more congestion on the road and people could buy products from ASDA and then litter.
This can conflict with customers because if ASDA plan to put a store in the community and the community does not want a new store. This can make ASDA lose customers in that area.
National Community –
ASDA does not have a National Community, this means that it has no influence or interest and will not conflict with ASDA
Governments (Local and National)
The Governments each have an Influence on ASDA because as an organisation they need the Government’s permission to build their stores on certain bits of land. The Governments have no authority over the business as it is an external shareholder.
The Local governments are important as they allow ASDA to build their stores. Both Local and National are interested in ASDA building stores because it will lower the rate of unemployment.
Customers of Autism Hampshire have a massive influence. This is the customers rely on the services that Autism Hampshire provide, this means that both the organization and the customers are important to each over.
If their was no customers that used the services which Autism Hampshire provide then the charity will disband because it has no use to the public. Therefore, this means that the company rely heavily on customers. Customers do not pay for the services, as it is a non-profit organisation.
The employees are a massive influence for the organisation because as a charity it needs workers with skill because otherwise people would not use the charity because it would not be helping their needs. They are devoted to helping people in need. As a charity the employees are the face of the charity and they promote the charity as they work.
There isn’t a certain supplier for this charity organization. This is because suppliers for charities can be people who donate money and equipment. So their isn’t a specific supplier for Autism Hampshire.
With Autism Hampshire there is only one owner with many people that work under the charity. The owner is normally the person that created the charity or if the charity has been passed down.
The owners have a massive influence because they created the sole purpose to help people. This means that they have all the say in what happens within the organization.
Trade Unions –
This link above is a Trade union for not for profit workers (charity).
Trade unions for non for profit organizations normal do campaigns around the country trying to promote their services to people that are unaware. The union can get their members to post advertisements such as leaflets and ads in newspapers about their charity.
Trade Unions can influence the purpose of Autism Hampshire to provide their services more because the unions have helped them gain interest with people that did not know what the charity does and how the charity can help them.
Employer Associations –
There is no employer association that is related to Autism Hampshire.
Local Communities –
Local communities influence a charity a lot this because Autism Hampshire is a local charity. Therefore, if the community offers the charity money or equipment to keep the organization going.
National Communities –
National communities have no relevance to Autism Hampshire.
Governments wouldn’t have much influence on charities.
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