CONTEMPORARY BUSINESS ISSUES Essay Example | Topics and Well Written Essays - 2500 words

CONTEMPORARY BUSINESS ISSUES - Essay Example ASDA is a supermarket chain with direct focus on its customers and suppliers. It purchases goods from its suppliers and sells them to its customers. It does not have direct influence on its profitability by any other stakeholders. Although customers and suppliers are the main components of ASDA’s profitability, various other stakeholders also have to be considered and taken into account before arriving into any decision. These variables have an indirect effect on the working and profitability of the company. a) Shareholders: The aim of the company should be to maximise the return of the shareholder as they have invested their wealth and time in ASDA. Company should decide that whether the decision taken by the company would be right for the shareholders and their wealth or not. b) Customers: Customers are another important component which should be considered before arriving at any decision. Customers basically want good quality products at the lowest possible price. Company must see that they generate profit meeting the needs and wants of its customer at the most efficient price. Profit should be generated from customer satisfaction and not by their exploitation. ASDA assured its customers regarding the products it made was not an outcome of exploitation but behind the scene its workers were even not getting enough wages. c) Management and employees: These are the pillars of any organisation or company. In ASDA the condition of its employees was worst. If worker’s interest is not checked by the company, they will not work to the best of their capability making the company incompetent. No proper attention was provided to the needs and comforts of the workers. ASDA must check that their profitability motive does not overlook their employees. d) Government: Government is another party who does affect the profitability of the company. Many a times, government intervenes into the working of the business through the formulation of new