Meeting stakeholder needs through community involvement
An Asda case study

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Page 3: Stakeholders

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Any individual, group or organisation that is affected by the actions of a business is a stakeholder.

Internal stakeholders may be within an organisation, such as the directors, managers and colleagues who are colleagues of each other.

External stakeholders exist outside an organisation and some of these will be customers, suppliers and shareholders. Each of these groups of stakeholders is affected by the actions of ASDA. They have a real interest in the nature and types of decisions that the company's managers take.

For example:

  • Customers want low-priced, good products. Modern customers also have high expectations of organisations. They will want them to get involved in the local community. They will then want to know about them. ASDA stores and depots have community noticeboards and a monthly magazine is produced which features community events.
  • Colleagues like to serve the community. The retail industry is not highly paid - customers demand low prices and operations require a large number of colleagues. So working with the community helps to motivate colleagues. All the events that ASDA holds are shared in an inhouse monthly newsletter.
  • Shareholders want a good return on their investment. They also believe in community interest, as they like to see the company they have invested in acting positively in its environment.
  • Suppliers at a national level are the very large providers to ASDA. They will want to sell goods in volume at good prices. This gives them economies of scale. ASDA has worked hard at building up links with local suppliers. It works with small and medium-sized businesses that are able to provide products for groups of stores at terms that suit them.

Asda | Meeting stakeholder needs through community involvement