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  • Posted By: jkl24jkl
  • Date Posted: 07/12/2011
  • Category: Business
  • Words: 900
  • Pages: 4
  • Views: 1089
  • Rank: 763

Use The Stakeholder Model Of Business Environments To Critically Examine The External Environment Of Asda Wal-Mart As Outlined In The Case Study That Follows

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Use The Stakeholder Model Of Business Environments To Critically Examine The External Environment Of Asda Wal-Mart As Outlined In The Case Study That Follows

Use the stakeholder model of business environments to critically examine the external environment of Asda Wal-Mart as outlined in the case study that follows.


The Asda Wal-Mart case study begins by highlighting the success of Wal-Mart and critiquing its business approach. The study moves on to Wal-Mart’s take over of Asda, its values and finishes with criticisms of its business practices. Based on this case study, I will critically examine Asda Wal-Mart’s external environment using the stakeholder analysis.


A stakeholder’s analysis of a business’s external environment categorises the organizations and persons in that environment determining whether that organisation or person, the stakeholder, has any interest or any power over that business. A stakeholder’s analysis further identifies that interest or power as high or low.


There are four categories of stakeholder including, stakeholders with low power and low interest, stakeholders with low power and high interest, stakeholders with high power and low interest and stakeholders with high power and high interest.


The main stakeholders identified in the Asda Wal-Mart case study are Sam Walton and family, shareholders, CEOs and executives, employees, consumers, special interest groups, suppliers and competitors.


Stakeholders with Low Power High Interest


Employees seem to be in a position of low power and high interest. Employees can notcannot influence where and how Wal-Mart does business. howeverHowever, their interest is high as their job security and alternative employment options depend on Wal-Mart. Wal-Mart drives out competition diminishing and an employee’s options regarding alternative employment. If employees band together they can affect Wal-Mart somewhat. The case study highlights that when Wal-Mart employees were denied their lunch breaks in California, they filed a law suite against Wal-Mart and then won receiving financial compensation. Wal-Mart’s actions impact employees massively and whilst individually employees cannot influence Wal–Marts actions, collectively with court action, they ...

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