Evaluation of the stakeholder’s exerts in the organization

It is very difficult for organisation to meet every stakeholder’s needs. Businesses should respond to their stakeholders according to their power, importance and influence. A business should not only care about only one stakeholder because winning one stakeholder means losing others. So every business should give varied importance to different stakeholders keeping in mind what is their role for the organisation.

In this essay I will discuss about the ASDA’s stakeholders influence and power in ASDA:

These are the main stakeholders of the ASDA;

Stakeholders	Interest
Shareholders	Shareholders have interest in profit growth and get share of profit growth as a dividend.
Employees	Employees have interest in job to get salaries and bonuses at the end the month from employers.
Managers	Managers have interest in improving ASDA sales to get paid at the end of month.
Government	Government have interest in ASDA to reduce the unemployment and to collect taxes.
Supplies	Suppliers have interest to sell goods in bulk and to receive profit after delivery of goods.
Customers	Customers have interest in buying quality goods and services to use them for their own purpose.

ASDA is trying to offer prices as cheap as they can of their own manufactured products. It means ASDA want a good relationship with its customers, who are their biggest stakeholder. More customers mean more profit. ASDA has very much interest in its customers. While employee can be bored of working continuous hours but ASDA can’t avoid sell goods to customers. Customers may be the most powerful stakeholder of the ASDA. Because ASDA is nothing without customers and everything ASDA does is to attract customers, impress customers, and to make loyal customers.  I think customers are the king for ASDA because ASDA does everything to keep their satisfied. For ASDA customers are the main stakeholder.     

  

Next, Shareholders have interest in ASDA’s growth. If ASDA grows and make high profit it will increase its shareholders. More shareholders will bring more investment in the ASDA. Then ASDA can invest the amount where they can generate more profits.  So shareholders are important for ASDA because they help ASDA to increase their profits. Shareholders and employees have common interest in the success and growth of ASDA. ASDA considered them key stakeholders because both help ASDA to improve the profit. However they have different task to do. Shareholders have to invest their own money while employees work internally and deal with customers. Then at the end both stakeholders will be rewarded shareholders with dividend (share of profit) and employees with salaries. They will help ASDA equally if ASDA maintained wages of the employees because a rise in wages may reduce shareholder dividend as high wages will reduce ASDA’s profit. Employees are important than shareholders for ASDA because employee deliver their best service to customers to make them satisfied and happy. Employee and are the playing a high role in making customer loyal and attract them to come to ASDA again and again. Then in return ASDA try to give their employee best pay and impress bonuses.     

             

Government has interest in ASDA because it provides number jobs to the people of the UK. Workers get salaries and wages and government obtain the taxes. ASDA also have to look at law and regulation which are set by government before making any decision. Government is pretty much involved in ASDA’s decision. So government is very powerful stakeholder of the ASDA. If ASDA don’t follow the government law and regulation like Employee safety, minimum wage and etc may end up paying high fines. Government law can affect ASDA cost and profit for example increase in minimum wage may increase ASDA expenses and reduce their profits it also affects shareholders too. So government is more important than employees and shareholders.