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.

Topics: Wal-Mart, S. Robson Walton, Stakeholder Pages: 5 (1230 words) Published: September 14, 2011
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:



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



Category B

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...
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