Stakeholders of the Company Essay
The stakeholders of a company are the people, companies or entities that affect or are affected by the company. The stakeholders of Albertsons are the customers, suppliers, consumer groups, shareholders, government and different retail stores operating in the country. Global Business Environment Effects on the Company The globalization phenomenon has affected many businesses in recent times and the retail business has specially been affected as the retail companies purchase a lot of their merchandise from the international market.
The political, social and ethical environments of different countries directly affect the companies buying merchandise from these companies. Albertson is one of the biggest companies in the retail industry with a diversified supplier base. The political and social unrest and the laws prevalent in the countries where Albertson’s suppliers are situated directly influence the overall business. The management of Albertsons has to plan the levels of inventory and purchasing based on the suppliers’ countries.
Another area affected y international business is that of international benchmarks for different products and procedures such as the quality of products or the way financial statements are prepared and interpreted. Factors Determining the Appropriate Product Mix The marketing mix includes the product, price, place and promotion. The marketing mix
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The company ensures that the environment within the stores is appropriate, friendly and attractive to the customers. Products have competitive and suitable prices in order to meet the demand of customers. Assessment of Demand for Products The future demand for products is predicted through the previous trend in sales of different time periods and locations. This assessment is done in order to keep the inventory levels at an optimum point. Another tool which is used for the assessment of this demand is the overall demand of various products in the retail market.
Identification of Changing Customer Preferences The changing customer preferences are identified through different surveys and different feedback programs. Surveys are usually conducted at store locations but general surveys are also conducted from time to time. Protection of Raw Material Supply Chain As the retail industry purchases finished goods and no raw materials are purchased, Albertsons only has to protect the supply chain of perishable goods it deals with. Measures are taken to ensure the safe delivery, storage and preservation of these goods. Distribution System
The distribution channel used by Albertson is the same as SUPERVALU, which means it is an effective system of distribution through the company’s own logistic services coupled with third party logistics. Strategic Planning The company is well aware of the high competition in the retail business and must remain ahead of the competing companies. In order o achieve this goal the company formulates strategies with respect to products, prices and sales management. Research surveys are also conducted to remain updated on the changing trends in consumer behavior.
Social Responsibility The company sets very high standards for ethics and social responsibility. Many initiatives have been taken by the organization in the fields of environment preservation, hunger alleviation and nutrition. Management Style The management style being followed at the company is participative management which retains some authority to the superior and some authority is delegated to the subordinates. As the size of the organization is very large it is quite difficult to evaluate the management style being followed in different stores.
Human Resources The personnel and employees of the company are given much importance and are motivated through various incentive programs. The employees are given appropriate training and an opportunity to learn and grow personally. Some of the benefits offered to employees at Albertsons are medical and dental insurance, disability and retirement benefits, prescription drug coverage, holidays and vacations (Albertsons, 2009). Financial Management The Albertson Company faced dire financial conditions during 1999-2001 and it had nearly declared bankruptcy.
The company was too much focused on quality of products and customer services and the financial metrics were not given due attention, the result was a financial crisis. Even though the company was financing in positive NPV projects, it could not keep up with the intense competition and was eventually acquired by SUPERVALU and the New SUPERVALU was formed. SUPERVALU faced some financial pressure right after acquisition but the financial condition has improved considerably in recent times. Conclusion After the evaluation of all the components we find that the Albertsons Company faced a lot of challenges before the SUPERVALU arrangement.
The challenges were quite intense and the financial condition worsened in 2005. It has only been four years since the acquisition but the turnaround of the company is quite effective as SUPERVALU has revamped the structure and strategy of the company. The recent financial crisis has also affected the company but the overall financial position is much better than previous years. Although the company is one of the biggest retail businesses there is still room for improvement and the company needs to get ahead of the competing companies like Wal-Mart, Kroger and Safeway if it wants to achieve long term success.
Albertsons. (2009). Careers. Retrieved May 21, 2009, from Shop. albertsons. com: https://shop. albertsons. com/eCommerceWeb/CareersAction. do? action=getRetail&target=getWhyWorkAtAlbertsons Progressive Grocer. (2004, February 23). Albertsons Announces Major Operational Changes. Retrieved May 21, 2009, from Allbusiness. com: http://www. allbusiness. com/retail-trade/food-stores/4256323-1. html Zoominfo. com. (2009). SUPERVALU – Albertsons. Retrieved May 21, 2009, from Zoominfo. com: http://www. zoominfo. com/Search/CompanyDetail. aspx? CompanyID=1114181&cs=QCEQBFik&pc=indeed