To a
business a local community is people who live in the same locality, moderate
distance away from their location and under the same local government.
An example
of a local community to an Asda store could be Dudley, as one of their larger
stores is situated there.
This is the
same for Kellogg’s too, their local community would be their local customers
that buy their products off them.
Internal or
External?
Local community
is classed as an external stakeholder as they do not work directly within the
business. I.e. Asda or Kellogg’s.
However, the
local community are an important stakeholder as they too determine the profit
levels of both businesses. Without the local community, the businesses would
not have any customers.
Asda and
Kellogg’s have to remind the local community as to why they will benefit them
as a business and what positive aspects they will bring to the community.
What do the
local community want from Asda and Kellogg’s?
Quality –
The local community want good quality products from a business otherwise they
are unlikely to purchase anything; this will affect the business as their
profits will be deteriorating. Also, good quality products lead to repeat
customers as they are likely to be satisfied with what they have brought. For
example, Kellogg’s are based around food products, if they were to produce a
high quality snack bar then customers are more likely to buy it again. These
are also a part of both Asda and Kellogg’s aims, they shouldn’t fail to live up
to their aims as it will lead to unsatisfied customers.
Recognition/
value – The local community want to be taken into account by businesses as they
are the main reason for their success, as without the community, there would
not be any customers, therefore, no profits. Being recognised means to be
involved in events and asked for their opinions and suggestions. This will help
the local community and the businesses build a better relationship together,
this will lead to loyal customers and an ongoing relationship which will
benefit each other as the community get to voice their opinions and be heard
and valued and the businesses can take the improvements into consideration and
hopefully make the business better.
An example
of this is Asda asking the local community of what they thought about their
shopping experience, this was done by filling out a simple questionnaire which
could be completed in store or at home and given back the next time they
visited, these opinions were put into consideration and helped develop the
customers shopping experience by addressing the issues.
How do the
local community influence the aims of Asda and Kellogg’s?
The local community
are important when it comes to the aims of a business, this is because the aims
have to revolve around the business community, they have to match the
characteristics of the community to their business in order for it to succeed.
Kellogg’s
aim to reduce obesity within the community, this is mainly focused towards
children who may not have the correct facilities to match their needs, this is
why Kellogg’s have developed a swimming scheme since 2009, this is where they
invest over £200,000 to help provide transport to local swimming pools for
children, swimming sessions for people with weight issues and cultural closed
sessions for women or children who may have religious reasons which prevent
them from swimming in a public area.
This brings Kellogg’s and the community together as they will be meeting new
people and bring along new potential customers, which will help generate
profits.
Also Asda do
a lot of fundraising and charity events to raise money to develop the local
community. There is an article below which explains how they want to play a
leading part in the local community.
An example
of local community work from Asda is in the South Harrow store, this is where Tai
Chi master Arthur Leong has been giving free Tai Chi lessons for local people
every morning for the past three years to promote health and fitness.
Below is an advert which shows the London 2012 Olympic games featuring Rebecca Soni
How do the
Local Community conflict with other stakeholders of Asda and Kellogg’s?
Example 1 –
(Local community and owners) If a store or factory was planning to redevelop
their stores then they would have to get planning permission from the local
council. However, the local community may object to the planning permission as
they believe it will be creating an eye saw in the area or that there will be
too much noise and disruption being caused. This issue can be resolved by
asking the community why they do not agree to the plans and see if there could
be a solution or the store could relocate their store to another place so that
the other communities can have the opportunity of having their services.
Businesses
can be owners by and individual, a group of people or an who operate a business
and have full authority of running the business, their main interests of a
business is to make profit and turnover
at the end of each month.
Asda’s
Owners
ASDA became
a part of the Walmart Family in 1999; Walmart is an American company, however,
the company, ASDA, is national as it is a British chain of supermarket stores.
It's headed
by the Walton family in the USA who own the public company Wal-Mart who own
ASDA.
A subsidiary
is a business entity that is controlled by a parent corporation, in this case
Walmart. This is usually done whereby the parent organisation has the majority
shares in the subsidiary, in this case ASDA.
Kellogg’s
Owners
The official founder
of the Kellogg’s company is Will Keith Kellogg and there is James M. Jenness who is the Chairman
and John A. Bryant who is the President and CEO of the company.
Internal or
External?
Owners are the
most important internal stakeholders within a business because they are the
people who delegate positions to other employees, they decide how profits can
be made and they run the entire business with the help of their managers.
Owners are
the most responsible for the businesses failure or success.
What do
owners hope to gain from Asda and Kellogg’s?
Business
growth – This is the most important aspect that an owner wishes to receive from
its business, owners want their business to continuously develop because it
will generate more profit. However, it is up to the owners individually to make
this happen, they are the people responsible for success.
Hard workers
– Owners want to have hard working employees to ensure that their business can
run smoothly without any hassle. The harder the employees work, the more
customers will return therefore, more profits will be made.
Good
reputation – Owners want a good reputation in order to increase the chance of
new opportunities, such as business deals with new companies, this too will
help increase profit rates.
How do
Owners influence the aims of Asda and Kellogg’s?
Owners have
the most influence on the aims of a business, this is because they are the last
people to decide what is going to happen, suggestions may be made by other
people, however, they have to be run past the owners for a final decision.
An example
of an owner influencing the aims of Asda is shown in an article below.
In the
article above, the Owner of Asda has decided to create over 50,000 new jobs
worldwide, this will benefit the aims as the production and rate of work
completed will increase.
How do
Owners interests conflict with other stakeholders of Asda and Kellogg’s?
Example 1 –
(Owners and customers) The main conflict between owners and customers is prices
and costs of products. As mentioned before, these issues have to be balanced or
resolved in order to keep customers happy and profits maintained.
An example
of conflict between customers and owners is shown in the article below.
The article
shows that customers will not pay more than 133.7p per litre of petrol, they
argue that the prices are too high. This issue was resolved by cutting the
price by 2p per litre. This was done to avoid losing customers which could
affect profit levels.
A supplier
is usually a large business that manufactures materials into good which can
then be sold onto stores such as Asda. Suppliers are important to a business
because, without them, the business would not have any products to sell to the
general public, meaning they will not generate any profits. However, suppliers
rely on businesses to buy their products, meaning it is a two way relationship.
Businesses
rely greatly on suppliers as they help their businesses run efficiently by
providing goods on time, this is important as suppliers could lose custom if
they weren’t punctual enough towards their buyers.
Examples of
common suppliers are; Kellogg’s – they are a snack based company which
manufacture and sell on food such as cereals and snack bars.
Also,
Walkers is another common supplier who are a snack based company which modify
raw materials into crisps, which are then sold onto supermarket stores.
Internal or
External?
Suppliers
are external stakeholders because they do not work directly within a business,
they are an organisation or small company which has an interest in another
business and they’re also affected by the activities of that business.
For example,
a supplier of Asda is Kellogg’s they provide them with snack based foods which
can then be sold in their stores across the UK.
Suppliers of
Asda
Asda have a supplier’s
website where they allow the general public to know what they expect to gain
from having a relationship with a supplier. www.asdasupplier.com
This is
taken directly off the website: These are the things Asda expect off suppliers.
In order for our business to work, we need a
healthy relationship with our supplier base. The way we want to work with you
is set out below.
We break our business down into four
key supplier facing areas:
Food, Household, Health & Beauty
- this area covers off the key FMCG core of our business.
H&L - Home & Leisure offers a
breadth of non-food range that few of our competitors can equal, and
contributes to our vision of delivering “everything under one roof”
Clothing - Our George clothing
business is one of the largest clothing retailers in the UK by volume, and has
a trusted heritage stretching back almost 20 years.
Central Buying - This is the team who
makes purchasing decisions on goods not for resale (GNFR) – from capital
expenditure on contracts for building, through to carrier bags and colleague
uniforms.
Kellogg’s
suppliers
Delivering Success
“To keep our company and communities
growing strong, we source from the widest and the best base of suppliers. It’s
all part of our Supplier Diversity Program.
By strengthening our diverse
procurement relationships with W/MBE-owned, -controlled and -operated
businesses, we can help each other achieve long-term success. So together we
can all keep going — above, beyond.”
This is what Kellogg’s believe when
it comes to the supplier’s diversity aspect of their business. It has been
taken directly off their website.
Kellogg’s
suppliers provide them with the raw ingredients and packaging to make their
products which can then be sold onto the tertiary sector business, such as
Asda.
What do
suppliers hope to gain from Asda and Kellogg’s?
Business
growth – This is one of the main interests that Suppliers have for a business,
this is because if the business keep on growing and developing, then they are
more likely to want or need a larger volume of products from their suppliers,
this means that suppliers will be generating a higher profit.
Loyalty –
Suppliers have to develop a good relationship between Asda and Kellogg’s in
order to keep them as loyal customers, this means that they voluntarily want to
come back to their suppliers for repeat custom. This also means that the
suppliers will be continuously maintaining their profit levels as they haven’t
lost any business.
Suppliers
also want to be heard by their customers, this is because suppliers are always
thinking of new ways to develop and improve their products which then have to
be sold onto stores such as Asda or Kellogg’s, this can either be a good or bad
thing as some customers may or may not like the changes to the products.
An example
of this is, Kellogg’s developing different models to their cereals. Such as
Coco Pops being changed in to different shapes such as Moons and Stars.
How do
suppliers influence the aims of Asda and Kellogg’s?
Suppliers
have a huge influence on Asda and Kellogg’s as they are the reason for why
customers return to their business to buy more products.
Quality –
Suppliers influence the aims of Asda and Kellogg’s in terms of quality, this is
because one of their main aims is to provide their customers with the best
quality products. Now, this is all down to the suppliers as they are the people
who provide the products which have to be sold to the general public. If the
products aren’t of their highest quality, then customers will become
dis-satisfied and highly unlikely to return back to buy more, this will affect
profits in a negative way as there will be fewer customers.
An example
of this could be Kellogg’s providing Asda with cereal bars which weren’t
produced properly as customers were coming back to complain that they were too
hard to eat.
Reliability –
The reliabilitycould
affect production. If orders do not arrive on time finished goods may not be
ready for shipping to customers. Also, it would affect the likelihood of the
repeat custom as Asda and Kellogg’s want to run an efficient business and
suppliers are a big part of efficiency. This would affect both suppliers and
the two businesses profits as they will be losing customer and wasting time
finding new suppliers.
Credit Terms
– Suppliers could change the way that they operate financially which means that
Asda and Kellogg’s could be affected as they may have to pay higher prices than
what they usually do for bulk orders.
Pricing –
Good pricing is vital for both the suppliers and two businesses as they both
want to generate profits at the end. If the suppliers pricing is too high then
they aren’t likely to have much custom, also, if Asda’s pricing is too high
then they aren’t likely to have customers as they would go elsewhere. This is
where both the suppliers and two businesses have to stay on top of their
competitors in order to make profits and maintain customers.
How the supplier’s
interests conflict with other stakeholders of Asda and Kellogg’s?
Example 1 –
(Suppliers and Customers) Customers are always looking for cheaper priced good,
this means that the suppliers would have to lower their prices, however, they
cannot afford to do this, which means that the customers would be dis-satisfied
and possibly go elsewhere to find cheaper products. This will affect both
businesses and the suppliers as they will lose out on profit.
A customer
is an individual which buys products and services created by another person or
organisation, in this case Asda and Kellogg’s.
Customers
are the most important component of a business because, without them the
business would not be able to sell goods/ services therefore they are unable to
generate any profits.
Two
different sections of the market:
·Mass
market is when a product or services is aimed at a huge population of people.
·Niche
market is when a product or service is aimed at a smaller population of people.
There are
different types of customers which can be broken down into different groups.
These groups are used to identify which products would work better and sell to
almost every different customer type.
Typical
customer groups rely on; Age, Gender, Socio- economic group, hobbies and
culture.
EXAMPLES:
Age – under
16, 16-24, 25-35, 36-50, 50+
Gender –
male or female.
Socio economic group -
Class 1, Group A, Higher Professional,
Class 2, Group B, Lower professional, Class 3. Group C1, Non – Manual,
Class 3, Group C2, Skilled Manual,
Class 4, Group D, Semi Skilled, Class 5, Group E, Unskilled/ unemployed.
Hobbies – Sports, science, reading, outdoorsy people etc.
Culture – Christian, Indian, Muslim, Jamaican, Jewish etc.
As well as
the above divisions, there are 8 other categories that customers can be divided
into, for example, these can be used by businesses to determine the different
number of each customer type visits their business.
Individuals –
People who visit alone.
Groups - A
group of people.
People of
different ages – 2 or more people who aren’t the same age.
Young
children – People below the age of 12.
Business men
and women - People that are associated in a business.
People with
specific needs - People who aren’t full able. i.e. partially sighted
Non-English
speakers – People who are unable to speak English or use another language.
People from
different cultures - People from different countries and have different
lifestyles to the local community.
Internal or
External?
Customers
are external stakeholders of a business as they aren’t a part of the business
in terms of working. They only have interests in buying products from the
business and receiving high quality services. They too have an influence on the
activity of a company as they determine their profit levels.
What do
customers hope to gain from Asda and Kellogg’s?
Involvement –
customers want to feel as though a company values their feelings and takes them
into consideration, this can be done in many ways by both Asda and Kellogg’s,
for example, asking their opinions on how a particular Asda store could develop
further to make it an all around better shopping experience or for Kellogg’s,
they could undergo a survey asking customers what they feel could be added onto
their line of snack bars.
Speed – A customer
is highly likely to return back to your company if your customer service is
efficient, for example, with Asda they have now developed self service
checkouts, where people with fewer items can process and pay for their products
a lot quicker which means they do not have to waste time waiting in a queue.
Also, for both Asda and Kellogg’s if deliveries are quicker than their
competitors then a customer is likely to be satisfied and undoubtedly will
return to business to purchase additional products.
Friendly
staff – Customers love having friendly, helpful employees around them if they
are in need of help, for example, a customer isn’t very likely to spend money
in a business where the staff are rude, and they are more likely to go to their
competitors or another place where the staff are friendlier. As Kellogg’s do
not have stores, this would not apply to them. However, over the phone services
could relate to this, as customers want to experience friendly staff on the
phone too.
Skilled
services – Customers view the employees to be skilled, this is also a part of
the experience which they pay for as they almost idolise the employees in terms
of knowledge about products. For example, an Asda employee working in the
electronic department is highly likely to know a lot more about technology in
comparison to the customer; it also allows the customer to learn new things at
the same time of buying products.
Good quality
products – Customers want good quality products from a business otherwise they
are unlikely to purchase anything; this will affect the business as their
profits will be deteriorating. Also, good quality products lead to repeat
customers as they are likely to be satisfied with what they have brought. For
example, Kellogg’s are based around food products, if they were to produce a
high quality snack bar then customers are more likely to buy it again. These
are also a part of both Asda and Kellogg’s aims, they shouldn’t fail to live up
to their aims as it will lead to unsatisfied customers.
Cheap prices
– Customers rely on cheap prices from both Kellogg’s and Asda, this is also a
part of the companies aims as they have to stay on top of their competitors.
Especially in the current economy, every customer is finding it hard to afford
products of a higher price, however, Asda and Kellogg’s both have reasonably
priced products as they want to keep their customers happy but they cannot put
them too low as they will be losing out on profit. However, if a product is
priced too low, then a customer is likely to recognise that the product may be
inferior to products of a higher price range, this may lead to the business
losing out on profits too.
Customers
have a major impact on the aims of Asda, this is because they are the reason
for why the company creates profits in the first place.
One of Asda’s
main aims is to provide good quality products, this is why they have developed
a “Chosen by You” brand for customers. This is where customers have input on
the products that Asda’s provide by tasting and testing products, such as cakes
or drinks, and giving their opinion on them.
These
processes will help boost the profit of Asda as they know that their customers
will purchase these goods as they have been tried and approved by them.
Examples of
products from the “Chosen by You” range are shown below.
Here is an
article which explains the development of Asdas “Chosen by You” brand.
Here is an
advert below which shows you some of the products available from the “Chosen by
You” range.
How do customers influence the aims of Kellogg’s?
Customers
also have a large impact on the influence of Kellogg’s as they are the
businesses source of profits.
One of the
main aims of Kellogg’s is to increase the relationship of fitness and the
business, this is done by including the customers as they are asked to take
part in a variety of activities and competitions.
An example
of an event that took place was called the Swim-tastic award. This was to help younger
children develop their swimming skills and it also helped Kellogg’s as they
will be eating their branded products to help their fitness levels increase for
swimming, therefore, increasing profits.
Below is an
article which explains the different awards available for people to win.
How the will
the customers interests conflict with other stakeholder at Asda and Kellogg’s?
Example 1 –
(Customers and shareholders) This one mainly relates to Kellogg’s, there could
be conflict due to the fact that customers want to purchase their products at
lower prices, whereas shareholders want to make a better profit on their
investments, these both have to be balanced in order to keep them all
satisfied.
Employees
as Stakeholders in relation to; Asda and Kellogg’s
What
is meant by an employee?
Employees
are people that work for a business as they are providing their customer
service skills to the public.
They
are the people who have been selected to work for a company by the managers,
this is done by a recruitment process, where the potential employees undergo
several tasks to prove their ability to work in a specific department within a
business.
E.g.
– A person working inside the Asda store or Kellogg’s factory, working in tills
or packaging products.
Asda
employs around 143,126, whereas, Kellogg’s employ 30,600 as of 2010.
Internal
or External?
Employees
are internal stakeholders for both businesses as they have a huge influence on
the activity which occurs within the business and they are also affected by
what goes on in the business. For example, the employee’s rate of work will
help the business to run efficiently, increasing profits meaning they will receive
wages each month. Also, they work inside of Asda and Kellogg’s whether it is in
store or factories, also they are under the managers supervision and they receive
wages from the company.
What
is involved in being an employee at Asda?
A
quote from an actual colleague who works for Asda said, “Most of the time, you’ll
find friends through work aswell. In the past I guess I’ve only every worked
with really small teams, here its always working with other people. That’s big
teams, lots of people you’ve got to know and get along with. Everyday is
different at Asda, so every day I might be spotting things out of place,
putting things back on the shelf, looking after colleagues, looking after
customers, tidying the tills, cleaning up mess and organising colleague breaks.”
As
you can see from the quote above an employee is not restricted to just one job,
they may be asked, over time, to vary their responsibility across the store.
What
is involved in being an employee at Kellogg’s?
What
do employee’s hope to gain from Asda and Kellogg’s?
A
purpose – They want to know that the jobs that they complete each day have a
purpose or reason behind it as it will help them to put more effort into what
they do.
For
example, if an employee at Asda was to organise an event for children, they
would have to know the purpose behind their event as it will motivate them to
make the it best they possibly can and it also allows them to know they aren’t
wasting their time doing unnecessary work.
Experience/
opportunity – Experience is essential for developing further into other careers
in an individuals life. Having a job can create opportunity for people as it
could help them develop their knowledge further in specific areas, such as
customer service or finance.
For
example, If an employee at Kellogg’s wanted to work up to becoming a factory
worker, then they could start their career by working in a Kellogg’s factory
doing basic jobs which would help them to progress and develop the required
skills that they need to become a higher level factory worker.
Also,
experience in factories could lead them to having additional employment for
other businesses, which will help to widen their career path. This will benefit
Kellogg’s as other companies will recognise their high standard of employee’s.
Wages/
pay – This may not be the first thing that comes into an employees mind,
however, it is essential to know that they will be receiving pay for the work
that they do in order to lead a healthy life and to earn a living in order for
them to survive in the real world. I.e. – pay bills.
A
Successful business – Employee’s want to be a part or help to develop a
successful business as it will determinate them to maintain their standard of
work or will help to push their skills further as they feel they want to reach
the level of standard that the company has, this could also increase the chance
of promotion for the employee. They also want a successful business as it will
provide them with wages each month.
If
Kellogg’s or Asda weren’t successful businesses, then their employees performance
levels would drop due to the fact that the companies profits aren’t well which
means that their wages will be affected, this will increase the chance of
employee’s losing interest in their work which will have a repetitive effect on
the business.
Below
are approximate profits for both Kellogg’s and Asda.
KELLOGG’S ASDA
Secure
job – Employee’s want a secure job as it will determine their level of work
within the business, a person with a secure job is more likely to perform
better as they know they will be a part of the business for a long time and
they do not want to let the business down, whereas, a person with an unsecure
job is more likely to have a lower standard of performance as they know they
will not be a part of the business for much longer.
For
example, if an employee, who worked for Kellogg’s, was told that they were
going to be made redundant in 3 months time, then their rate of work may drop
as they may feel less valued by the company, losing motivation or they know
that they will not be a part of the company much longer so they feel as though
they do not have to maintain their standard of work.
Employee’s
want to know whether their job is secure as it could be their only way of
earning money which is needed to help them live a healthy life.
Responsibility
– Employee’s want responsibility within a company as it shows that they are
trusted by their managers to complete certain jobs. It will also motivate them
to work alot harder as having responsibility relies on the individual only, and
if they weren’t to fulfil their responsibility then it could increase the
chances of losing their job.
For
example, If an employee, who worked for Asda, was told that they have to manage
the deli department for a temporary time of 3 weeks, it could motivate them to
work harder as they have been given the trust to carry out such an important
role.
All
of the above factors will help an employee work harder, which will benefit the
company as their levels of work will affect the businesses profits.
How do
employees influence the aims of Asda?
Employee’s
have a huge impact on influencing the aims of Asda. One of the main aims of
asda is to recycle as much waste as possible.
The employee’s
can help work towards Asda’s aims by creating events, this is up to the events
co ordinator to organise events for the community to participate in.
In the past
an event has been carried out in one of the Asda stores in Hampshire. This
event consisted of joining forces with Jamies Computer company in order to
maximise the rate of recycling old, unused computer machines. The local
community had the opportunity to give in their old computers to be recycled.
The whole
purpose of the event was because Jamie’s Computers is the computer recycling
social enterprise arm of The Society of St James; Southampton’s largest homeless
charity, providing housing, care and support to homeless and vulnerable people.
It also gave
the local community a chance to receive computer training to develop their
knowledge of technology even further.
Below is an
article which explains all the details of the event.
This is one
of many events that employees have put together to help increase the chances of
the businesses aims being achieved.
There is
also another recycling event which has been completed in one of the Asda stores
in the UK. There is a video below which shows what went on:
How do employees
influence the aims of Kellogg’s?
As mentioned
previously, Employee’s have a huge impact on influencing the aims of Kellogg’s.
One of the main aims of Kellogg’s is to increase physical activity for children
as much as possible.
The employee’s
can help work towards Kellogg’s aims by creating events, this is up to the
events co ordinator to organise events for the community to participate in. For
Kellogg’s this may be up to the office based employees to create events.
Below is an
article which shows an example of a swimming event created by the Kellogg’s
employees.
Basically,
the local children were asked to participate in a competition which the winner
and 9 of its friends would be able to meet a celebrity swimming champion and
have a swimming session with her at their local swimming pool.
This event
would contribute towards one of Kellogg’s aims as they would be increasing the
levels of fitness within children by encouraging them to swim better.
How may the
employees interests conflict with other stakeholders of Asda and Kellogg's?
Example 1 –
(Employees and Owners conflicting with Government)
This issue
revolves around tax, this is where the government takes around 40% of Asda’s
profits and Asda’s employees have to pay 20% of their wages as tax too. The
owners and employees do not want to give cuts of their profit or wages away as
tax.
However, the
government have a different perspective as the money goes towards ‘better
causes’ such as people who need financial help, i.e. poorer countries.
Example 2 –
(Employees conflicting with owners)
This is
where employees may want a pay rise as they feel as though they are working
harder more than they should yet they are still receiving a basic wage,
however, owners of Asda are focusing on reducing the prices of products to keep
customers happy, they cannot increase wages and decrease prices of products as
they cannot afford to do this. However, a way of resolving this is offering
occasional bonuses or overtime to employees at seasonal times such as Christmas. Example 3 - (Employees conflicting with owners) This is related to Kellogg's factory workers more than Asda employees. If a factory was to have poor working conditions, such as dim light, this could cause disruption or danger within the workplace for employees as their work will be affected. An employee may demand for better lighting but it could be the only affordable lighting for the owners to have as they are also concentrating on reducing costs of their goods.
Kellogg’s is
a cereal and snack based food processing company founded in February 19, 1906
by Will Keith Kellogg, hence where the company name came from, however it was
previously names The Battle Creek Toasted Corn Flake Company.
Kellogg’s
has developed into producing Cookies, Crackers, Toaster pastries, Cereal bars, Fruit-flavored
snacks, Frozen waffles and Vegetarian foods.
The main aims/ values
of Kellogg’s are as follows.
·We are passionate about our business, our brands and our food
·We have the humility and hunger to learn
·We love success
·We
strive for simplicity
Kellogg's objectives
were to:
·encourage and support physical activity among all sectors of the
population
·use resources to sponsor activities and run physical activity focused
community programmes for its consumers and the public in general
·increase the association between Kellogg and physical activity
·use the cereal packs to communicate the 'balance' message to consumers
·Introduce food labelling that would enable consumers to make decisions
about the right balance of food.
Businesses
are split into three types of sectors primary, secondary and tertiary. The secondary sector this is the
manufacturing and assembling process. It involves converting raw materials into
usable products, such as food, which is then sold to the tertiary sector. Kellogg’s is a company situated within
the secondary sector; this is because it obtains its raw materials of wheat,
corn, cocoa, rice and sugar from primary suppliers around the world. These
materials help make different breakfast cereals and snacks to sell to customers
through the tertiary sector, such as ASDA.
ASDA is a
chain of British supermarket stores which sells food, clothes, electrical
appliances, toys and financial services. They have also recently developed a
mobile telephone network which was launched in 2007 and it is known as ASDA
mobile and it works via the Vodafone Network. Another major development of ASDA
is the Opticians, Pharmacy and Cafes.
ASDA became
a part of the Walmart Family in 1999; Walmart is an American company, however,
the company, ASDA, is national as it is a British chain of supermarket stores.
It's headed
by the Walton family in the USA who own the public company Wal-Mart who own
ASDA.
The three
main focuses of ASDA are as follows: (They have been taken directly from the
website)
·Our Mission - To be Britain’s best value
retailer exceeding customer needs, every day.
·Our Purpose - To save everyone money, every day
·Our Values - We put our customers first, every
day. We care for our colleagues, every day.
We strive to be the best we can be, every day.
ASDA is in
the tertiary sector simply because it purchases materials, i.e. Food and many
more products from businesses within the secondary sector and then goes on to
sell them to customers. However, Asda could be classed as a part of the secondary
sector as they do have their own brand of products known as “chosen by you”.
Products made within the secondary sector by Asda are things such as organic
products and children’s “great stuff” products.
Asda is
important to all sectors, but mainly the tertiary sector as they are the 2nd
largest supermarket retailer. This means that they are more likely to buy more
products due to the number of stores that they have. They help out the
secondary and primary sectors due as they buy products and materials from both.
This keeps a healthy cycle of the 3 sectors when it comes to Asda alone.
The main
aims of ASDA are listed below:
·Reducing
the cost objectives of their items/products
·Recycling
their waste
·Reducing
energy consumption and being environment friendly
·Surviving
as a business
·Improving
quality of the products
·Providing
a highly competitive service
As
with any supermarket company, its main aim is to make a profit through the
process of buying products and selling them at the lowest prices possible in
competition with its competitors. Competitors of ASDA maybe other supermarkets
such as Tesco.
However,
ways of improving their rate of profit is by expansion, expansion of stores and
the number of stores around the UK. This is because more customers are likely
to go to stores that are very local to them, therefore, increasing profit.
A stakeholder is someone who may be interested in a
particular business, e.g. Asda or Kellogg’s.
Stakeholders are individuals, groups or organisations that
are affected by the activity of the business. They have an interest and
influence on the business.
There are two types of stakeholders
Internal – A person
or group within the actual business that have an influence on the company.
These may involve:
·Owners – People who have invested shares /money
into the business.
·Managers – People who organise and help to run
the business.
·Employees – People who work for the business,
i.e. – stores/ shop floors.
External – A person
or group outside the actual business that have an influence on the company.
These may involve:
·Community – People who are viewed to be around
the business, providing custom and employment.
·Government – People who deal with the legal side
to the business, i.e. – taxes or health and safety.
·Suppliers – People who sell goods directly to
the business.
·Customers – People who purchase products from
the business causing profits.
