Part I. Use the stakeholder model of business environments to critically examine the external environment of Asda Wal-Mart as outlined in the case study that follows. Each organisation has a unique external and internal environment that has unique impacts on the organisation. A stakeholder’s analysis categorises that environment determining whether an organisation or a person has any low or high interest and power over the business. Based on The Asda Wal-Mart case study, stakeholders are consecutive: HIGH INTEREST LOW INTEREST H I G H POWER
Category D Sam Walton and family: Rob Walton; CEOs and executives: Andy Bond, Archie Norman, Lee Scot, David Glass. Special interest groups: Consumer and community groups, anti – globalisation campaigners and trade unions Category C Customers, L O W POWER Category B Employees, Competitors, Suppliers – China, South East Asia Category A Not identified Figure1 – Stakeholder matrix for Asda Wal-Mart’s Category D stakeholders The main stakeholders identified in case study are Walton’s Family, shareholders, such as CEOs and special interest groups.
However, the key player in the organisation was Sam Walton, which exerts a powerful influence over the company’s behaviour and established organisational values. Moreover, Sam Walton pioneered the concept of self-service and central billing, making the Wal-Mart ‘Everyday low prices’ shopping and the largest company in the world. The CEOs make the decisions and introduce the strategies that drive the organisation, such as Archie Norman that restored Asda’s fortunes by concentrating on low prices strategy. It was a good marketing, which matched with Wal-Mart marketing strategy, and it came with a huge result of sales growth.
The power and influence of CEOs within Asda Wal-Mart is seen in an example of David Glass, which took a massive risk with the company money budget in pioneering IT and distribution systems through technology’s development. Special interest groups have a significant power to influence customers and employees to change their mind, by informing them about the business behaviour. For instance, the case study refers a Consumer and Community groups that claimed about supermarkets, which have been driven out of business by Wal-Mart.
In the other time, the Asda Wal-Mart has come under oppression from trade unions for implement a strategy to improvement of staff working conditions. Because of it, Wal-Mart slashed the prices down. Category B stakeholders The group of employees have a low power and it can be argued, that hey cannot influence where and how Asda Wal-Mart does business. However, their interest is high as Asda Wal-Mart drives out competition diminishing and an employee’s options regarding alternative employment. The case study shows that the company was hailed as a job-creator.
Wal-Mart’s actions affect employees massively and whilst individually employees cannot influence Wal–Marts actions. If employees would band together, they can affect Wal-Mart financially, such as then, when Wal-Mart’s employees refused lunch breaks in California and then received financial compensation. The case study highlights Wal-Mart’s demand for low prices and increased outsourcing to suppliers in South East Asia. It is mean, that suppliers have a little influence over the Asda Wal-Mart’s business, as Asda Wal-Mart could simply change suppliers or slashed the price, if unhappy with it’s.
However, their interest is high, as they want a profitable relationship with the company. For instance, Wal-Mart’s trade with China outstrips that of the UK. Competitors while unable to exert much power over Wal-Mart, have a high degree of interest in them. Wal-Mart’s aggressive undercutting and successful expansion massively affect the competitors. The power of competitors is low, as they cannot stop Asda Wal-Mart from moving into competitor’s area or under-cutting them. Category C stakeholders The retail industry of Asda Wal-Mart’s is heavily customer focused and closely considers the needs of its customers.
Customers can be seen, as having significant influence on Wal-Mart, because if the critical mass of customers would stop shopping a Wal-Mart, the business would cease. Customer’s interest could also change in dependence on decisions made by company. The case study describes an example, when Wal-Mart drove smaller competitors out of business and then moved their own premises out of town meaning that customers were required to travel further for their shopping. However, customers do not have influence on the daily running of Asda Wal-Mart, unless they are mobilised in large numbers.
To conclude, the analysis has shown that the long-term successful external expansion strategy of Asda Wal-Mart depended on the rise in sales growth, on the history of buy-outs and joint ventures, ability to managing company’s budget and on the level of the decisions and strategies made by stakeholders. Asda Wal-Mart is the number one retailer in the United States and is at the top of the Fortune 500 listing. This business is able to operate in many countries worldwide, just because of its aggressive growth targets. Word count Part I: 773 words
Part II. Reflection on the process of writing the stakeholders analysis in Part I of the eTMA. The Institutional mapping followed my stakeholder analysis. The process of writing the stakeholder analysis has started from identifying what is the analysis and created the key concepts. Then I could identify the main stakeholders and classify them into groups by using Matrix diagram. To facilitate the work I created the many notes and I had highlighted more important sentence or idea in the book and producing some drafts as well.
After these steps, I tried to understand stakeholder’s needs and integrate them into the strategies of the organization and into its actions. The next step which I took as a priority one, it was my ability to recognising influences and impacts, such as identifying causes and effects in case study and cause-effect relationships. Finally, I have identified problems by using SWOT analyse within a case study text and organising business problems. After when my assignment was ready to develop, it was easy to come for the proper conclusions and designing analysis to fit the assignment title and expectations.
Finally, I have done vocabulary and grammatical correctness. All of those steps were very helpful and effective as well, because of the clean up after themselves following paragraphs. Writing by specific procedures and agreed to develop a plan, makes it understandable and logical in its structure. A resources as used to compile, review and analyse data and information I collected from the Resource Book ‘Analysing Business Cases’ and from the case study containing data and informations. Moreover, the feedbacks for eTMA 01 were important to develop my current assignment as the main cause of my progress.
The advice received helped to understand the errors I have committed my work, improve the structure and material contained therein, and formalize the development of language. Thanks to the remarks and advices, I hope was able to avoid committing the same error. The most important things I learned during writing were how to be the critical when analysing cases and how to making mind maps for further analysis. Finally, I am richer for a new vocabulary of business areas and learned how to properly making analysis of the business case, step by step. Word count Part II: 357 words