Saturday, 27 October 2012

Owners; stakeholders of Asda and Kellogg's


What is meant by an owner?


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.

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