Asda Mart Stakeholder Analysis

Asda Mart

The model which we will use in this essay is called a stakeholder model and it helps us to identify the external influences on a business and analyse their effects on the behaviour of the business. When considering the Asda-Wal-Mart environment and the way in which they influence each other, it is very useful to have a model which is a simplified picture of the context in which events are taking place.
Matrix diagram for classifying STAKEHOLDERS:


Sam Walton             Shareholders  
              Lee Scott                 Chambers of Commerce
      HIGH         Archie Norman      
                Andy Bond
      LOW Competitors

Wal-Mart was founded by Sam Walton in 1962, in Arkansas USA, with one self-service store. He was a category D stakeholder with high power and interest.   He improved on all the previous systems of payment by introducing central billing.

The company expanded in its home territory until the 1980s, but outside the immediate area it had a low profile.
To the Chamber of Commerce, a Stakeholder category C with high power and low interest, Wal-Mart was a job creator and regenerator, which kept them satisfied.
Competitors, category A, usually smaller businesses, with no interest in the company and little or no power over Wal-Mart, were driven out of business by Wal-Mart’s capacity to undercut prices.
The global growth of the company was achieved by the use of a combination of buy-outs and joint ventures.

Asda was founded in 1965 as supermarket chain in the UK. In 1989 it found itself overstressed, as it was trying to sell too broad a product-range and twice had to ask shareholders for money to stave of insolvency. Shareholders, stakeholders category C, are in a position to affect the future of a company, but generally have very little interest in the company, and that which they do have is solely concerned with the...