Use the stakeholder model of business environments to critically examine the external environment of USDA Wall-Mart as outlined in the case study.

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No business can operate in isolation. All businesses operate in the wider business environment, which is described as ‘the external context in which organizations find themselves undertaking their activities’ [ (Capon, 2000, p. 8) J. This essay will use the stakeholder model to examine the external factors effecting USDA Wall-Mart. It is recognized that there are many internal stakeholders this essay will concentrate on the external stakeholders.

Essay Example on Asda Swot Analysis

Wall-Mart is the largest retail chain in the world, and the second biggest parakeet chain in the UK. The retail industry is heavily customer focused and as such USDA Wall-Mart should closely consider the needs of its customers. This is shown by the fall in market share in 2005 when competitors will have offered customers a better reason to shop with them rather than USDA. Low Power / High Interest Competitors while unable to exert much power over Wall-Mart have a high degree of interest in them.

The case study indicates that USDA concentrates on building market share on the back of low prices, any competitor in the low rice segment of the market would have a high degree of interest in USDA. The rise in sales growth in non-food lines of 25% also shows that other retailers, not just supermarkets should also be interested in USDA Wall-Mart. Competitors could use their buying power to influence Sodas suppliers but there is little evidence Of this in the case study. Competitors should also be interested in Wall-Mart due to history of buy-outs and joint ventures as well as the claim of USDA being the most affordable supermarket in the KICK.

The items USDA Wall-Mart sells can be sourced from many different suppliers, which would indicate that suppliers compete with themselves and as such are not in a high influence position. The case study shows that USDA is able to leverage the huge buying power of Wall-Mart to source items as prices not matched in the UK market. This is also shown in the fact that Wall-Marts trade with China outstrips that of the KICK. Low Power / Low Interest Communities are not immune to the USDA Wall-Mart effect. The case study highlights that while welcomed by some, they heavily affect others in a community.

This has lead to smaller competitors being driven out of equines causing some communities to have to travel greater distances to shop. Conclusion The case study shows that while there are many external stakeholders customers have the highest power and interest out of the external stakeholders.

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Asda Swot Analysis
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