Customers
are one of the most direct external stakeholders that a company must reflect.
Attracting and retaining the loyalty from core consumer markets it’s the
long-term financial success of the business. The trade resellers sell the
products directly to the suppliers of the supermarket business ASDA or they can
sell the products straight to the traders, but the business ASDA also need to
consider the customers as part of their stakeholders. If consumers don’t buy the
industrial goods, for instance. An example of this would be that nobody in the
distribution network prospers, another reason why they have a massive influence
is because they can decide to continue to purchase goods and services from the
organisation they can also choose to take their business somewhere else. This would therefore have
an impact on the business because if the customers decide to take their
business somewhere else the chain would not succeed.

Another important stakeholder for the
business ASDA would be the owner which is an internal stakeholder. The reason why this would have an
influence on the business is because they have a
big say in how the aims of the business are decided, but other groups in the
supermarket also have an influence over the decision
making. For example, the directors who manage the affairs of a company may decide to
make the higher sales a top priority rather than the profits. Managers is an internal stakeholder but they are the same as
the owners of the supermarket since they have control over the business
including the staff. Both of these stakeholders have an influence in a business
everyday by the decisions they make. This could include what products and
services to offer and who to hire or fire. Managers/owners implement company
policy and formulate strategy which affects the running and profit making
ability of a business. This would affect the business because if the
managers/owners sack employees then there’s less staff to keep the store tidy
and operated appropriately. If the superiors/owners hire new employees they may
not know the terms and conditions (rules) or what job they need to do and
complete this therefore will affect the other worker’s job routine.

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Another stakeholder for this supermarket
business would have to be the suppliers which is an external
stakeholder. The reason why suppliers would influence the business ASDA is
because they can raise the prices for of the
products that they sell to the supermarket business ASDA. This can affect the
supplier’s orders which can obviously affect a firm’s profits. If the suppliers
consistency is also not up to the standard ASDA would like it to be this could
affect production of the business. If the orders from the suppliers to the
supermarket business ASDA do not arrive on time or the production has been
badly damaged finished goods may not be ready for shipping to customers.
Suppliers can also change the credit relations of the business which may result
in cash flow issues for the supermarket company. The suppliers of ASDA can also
decide whether or not to allow discounts for bulk orders to loyal customers.
This would have a massive impact on the business because without the suppliers
the supermarket business ASDA cannot sell the products such as meat and poultry
as well as dairy. The supermarket businesses
very large provider are the suppliers as they want to sell goods in volume at a
reasonable good price. The supermarket business ASDA have worked very very hard
at building up a connection with the local suppliers of the company, this will
hopefully result in the business having a very respectable and robust
relationship with them. It works with small and medium-sized businesses that
are able to provide products for groups of stores at terms that suit them. This
would therefore help ASDA and the suppliers communicate well.

Another important stakeholder
that would have a massive impact to the business of ASDA would be the employees
also known as the staff
which is an internal stakeholder.
The reason why this would have a massive influence on the supermarket ASDA is
because they can influence the success of the business by their yield and effectiveness
in the job, duties and tasks that the workforce are completed. If this happens
it is known as a strike. This would have a massive impact on the business
because if the employees known as staff go on strike for a day or more, It
might make a difference from the supermarket chain earning 2billion to just earning
less that 1billion due to the strike which may cause redundancy.

A fifth important stakeholder would be the government which is an external stakeholder in this case. The reason why this
stakeholder has an influence in the business is because the government can introduce innovative regulations that will therefore
shake procedures such as the National Minimum Wage, they can even raise the Corporation
Tax of the business, this will therefore result in the firm’s profits been
reduced. This would make a huge impact on the business because if the
government raise tax it might make it harder for the staff to pay. This
therefore means that the business stakeholders are affected to from the staff
and the owners and managers and it would also affect the suppliers as well.

A sixth important
stakeholder for the business ASDA is the external stakeholder bank. The reason why this would influence the supermarket
is because the bank can allow or disagree loans as well as overdrafts to
companies. They can also control different interest rates on borrowings. This
would have an impact on the business because without the bank then the chain
may not be able to handle their money meaning it may go bust.

A seventh important
stakeholder for the nationwide supermarket ADSA is the local community which is an external stakeholder. The reason why it
has a massive influence in the business is because they can do an online
petition that goes against the businesses building or planning permissions for
new developments to the business to make it better. This therefore has a
massive impact to the customers and the employees as they may not be able to
work anymore due to the backlog of jobs that needs to be done.  This would have a massive impact to the
business because ASDA may want to expand their stores and make them super
stores and the community may not want that this is also classed as a pressure
group as well. The reason why this is because ASDA may want to expand but their
having the pressure off the community plus there against petitions not to let
this happen.

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