What is meant by local community?
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.
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