Use the Stakeholder Model of Business Environments to Critically Examine the External Environment of Asda Wal – Mart as Outlined in the Case of Study.

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Magdalena Herod B2108632 LB160 eTMA02 PART I Use the stakeholder model of business environments to critically examine the external environment of Asda Wal – Mart as outlined in the case of study. The stakeholder is a person, group or organisation who affects or can be affected by organisation’s actions. “The stakeholder analysis is a way of organising these people and groups into stakeholder’s categories according to the level of their interest in the organisation and their power to influence it.” (LB160 course glossary p.23) Very common method to indentify stakeholders is creating stakeholder matrix (Figure 1). It illustrates the relevant stakeholders and shows theirs power and interest in the organisation. | | Interest | | | | High | Low | Power | High | (stakeholder(s)) Sam Walton customers | (stakeholder(s)) | | Low | (stakeholder(s)) competitors employees suppliers trade unions | (stakeholder(s)) Chambers of Commerce | Figure 1. Stakeholder’s matrix diagram of Asda Wal – Mart. High interest / High power That group of stakeholders have a high level of interest and high level of power to influence Asda Wal – Mart. To that category of stakeholders belongs Sam Walton, founder of Wal – Mart. He pioneered the concept of self – service and central billing. His marketing strategy was focusing on low prices and one – stop family shopping. “He established three core organisational values: respect, service and excellence”. When the supermarket chain Asda was taken over by Wal – Mart in 1990, it was not in good condition. It was overstretched, selling to wide product range and was not offering “anything unusual” to their competitors or

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