Stakeholders of Asda (An analysis of Asda’s stakeholders)
This detailed analysis of the stakeholders of Asda aims to examine both the internal and the external stakeholders of Asda. It also aims to identify how Asda communicates with its stakeholders. Asda is one of the biggest supermarket retailers in the UK. It is headquartered in Leeds, West Yorkshire.
Internal stakeholders of Asda
The main internal stakeholders of Asda are the Executive Board, employees, managers, and shareholders. Asda is owned by the US retail giant Walmart. Its Executive Board consists of six leaders i.e. President and CEO, Chief Customer Officer, Chief Financial Officer, SVP-People (SVP-Senior Vice President), SVP-Operations, and SVP-Commercial. More than 140,000 people work in Asda. The company has recently decided to raise the hourly pay rate of its supermarket staff by 18p to be effective from 2020 (Wood, 2019). However, a dispute over new contracts concerning approximately 12,000 employees has drawn a lot of criticism.
External stakeholders of Asda
The main external stakeholders of Asda are customers, suppliers, creditors, competitors, pressure groups, local communities, and the government. Asda serves more than 19 million customers every week (Asda, 2019). However, it is worth noting that Asda needs to improve on customer satisfaction as it was rated the worst supermarket for online deliveries in a Which? survey (Morley, 2019).
Asda faces a number of big competitors in the UK grocery market. Tesco is the market leader and well ahead of Asda in terms of market share. However, the competition between Asda and Sainsbury’s to occupy the 2nd position in the market is absolutely fierce. Other big competitors are Morrisons, Co-op, Waitrose, Lidl, Aldi, and Iceland.
Asda works with a good number of suppliers; however, its treatment of suppliers has drawn criticisms. In fact, it was accused of never or rarely complying with the Grocery Supply Code of Practice (Butler, 2017). On the contrary, Asda (Through Asda Foundation) funds a number of projects to transform the lives of local people in the UK.
How does Asda communicate with its stakeholders?
Asda uses different communication methods to keep in touch with its stakeholders. For instance, the official website of the company (www.asda.com) contains detailed information about its history, products and services, career opportunities and many more. Likewise, it issues regular press releases to keep the stakeholders informed of any updates and developments. It also carries out extensive advertising campaigns to reach out to both existing and potential customers. If stakeholders have any complaints, they can email or phone the company. The email address and the phone number are available on the official website. Similarly, they can join online conversation through social media and the company website and leave any feedback they wish.
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Last update: 19 November 2019
Asda (2019) Company Facts, available at: https://corporate.asda.com/our-story/company-facts (accessed 18 November 2019)
Butler, S. (2017) Asda is named worst supermarket in treatment of suppliers, available at: https://www.theguardian.com/business/2017/jun/26/asda-supermarket-suppliers-walmart-morrisons (accessed 18 November 2019)
Morley, K. (2019) Asda rated worst supermarket for online deliveries in Which? Survey, available at: https://www.telegraph.co.uk/news/2019/02/22/asda-rated-worst-supermarket-online-deliveries-survey/ (accessed 17 November 2019)
Wood, Z. (2019) Asda announces pay rise as contract row continues, available at: https://www.theguardian.com/business/2019/oct/29/asda-announces-pay-rise-as-contract-row-continues (accessed 18 November 2019)
Photo credit: ASDA Corporate
Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He is a graduate of Leeds Metropolitan University and London South Bank University.