TRADE UNIONS AT CADBURYS & ASDA

Trade Unions 

A trade union is an organisation of workers who have banded together to achieve common goals such as protecting the integrity of its trade, achieving higher pay, increasing the number of employees an employer hires, and better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts (collective bargaining) with employers. The most common purpose of these associations or unions is "maintaining or improving the conditions of their employment" - http://en.wikipedia.org/wiki/Trade_union 

NATIONAL GOVERNMENT AT CADBURYS & ASDA

LOCAL GOVERNMENT AT CADBURYS & ASDA

Local Government  

Local government are external stakeholders. This is because they have an interest outside of the business, meaning they don’t work within the company yet still have an influence. The local government are the people who pass legislations which affects the business. They also collect taxes from the business and from the employees too. Finally, they give planning permission to the business if they want to re-develop or even re-locate. 

All businesses are affected by laws and legislation, and therefore governmental decisions impact on business functions. The government has an interest in businesses doing well as this helps to keep employment high and contributes to the gross national product. 

Cadbury local government

This is what a member of the Cadburys local government might say: 

I am a member of Her Majesty’s Government. It is very important to us that Cadbury is an effective business. After all, if it is successful it will be employing lots of people which is good for the country.

Cadbury also pays us tax on its profits. This helps us to pay for the things that everyone benefits from such as health care and education.

We also need to make sure that our population is being protected from being harmed or exploited. Two of the ways we do this is through:

• Consumer Legislation: Trading Standards Officers will want to know whether Cadbury meets its obligations in terms of consumer rights. Is it describing its products accurately in advertisements? Is the weight of a chocolate bar as given on the wrapper?
• Employment Rights: The Government will want to know, for example, that Cadbury is giving its employees contracts of employment and is not making them work too many hours. - http://www.skillsspace.co.uk/business_studies/16to19/stakeholders/government.asp?read=yes

NATIONAL COMMUNITY AT CADBURYS & ASDA

National community 

National communities are 



Cadbury national community 

Below is a person who works for Cadburys and gives their opinion on the national community: http://www.skillsspace.co.uk/business_studies/16to19/human_resources/staff_development.asp#cheryl

Cheryl – Community Affairs 

How long have you been working at Cadbury?I joined the company in May 2006. Previously, I worked for Business in the Community as the National Development Manager for Business Action on Homelessness. I worked with both business and charity partners in 26 cities. Prior to that, I worked in Marketing. I graduated from the University of Aston in 2007 with a combined honours degree in Business and Social Studies.

What is your job title and what does your job involve? My job title is Community Affairs Manager UK & Ireland. My role is to support Cadbury sites to engage with Cadbury’s national community partners, including Young Enterprise, Business Action on Homelessness, the Youth Sport Trust etc. My role directly supports a network of over 30 Community Champions who implement local community engagement activity at their Cadbury site.

How does Cadbury develop you?My role enables me to influence and work with the most senior people within the organisation for the benefit of the communities in which we operate, our employees and our business. Employees often find that their involvement in the community is a life-changing experience for them – this is fantastic to see and be part of.

What do you enjoy about your jobCadbury is very good at developing people. When I first joined the business I was sent immediately on a management training programme which supported me to become a Cadbury manager. I have also attended specialist training courses within the field of CSR (corporate social responsibility) to enhance and update my knowledge and skills. Every employee also has regular one-to-one meeting with their line manager as well as half-year and end-of-year reviews. This process of continuous assessment enables you to reflect upon your own style and continuously grow and improve your skills set.

LOCAL COMMUNITY AT CADBURYS & ASDA

Local Community 

Local communities are the people providing the business or company with employees and customer. Therefore they are very important people. The community gains employment and also benefit from the services provided. Local communities are external stakeholder. This is because they are a group outside the business yet they have an influence on the business’ aims and objectives. Firms and the communities they exist in
are also in a two-way relationship. The local community may often provide many of the firm’s staff and customers. The business often supplies goods
and services vital to the local area. But at times the community can feel aggrieved by some aspects of what a firm does.  All businesses must appreciate the role of the local community as a stakeholder. In order to operate effectively and be well accepted in the area, the organisation should be valued by the local community and help local people to understand why the company is beneficial to them.

Cadbury local community: 

The Local Area -  Cadbury World is located in Birmingham in the Heart of England. As you would expect from the UK’s second city, there is something for everyone to see and do; from an unrivalled mix of shopping experiences to a world class arts scene and a variety of fun family attractions, all easily accessible by road or rail from Cadbury World.

Bournville and the Surrounding Area

Cadbury World is situated in the historic Bournville village - site of the original 'Factory in a Garden'. In 1879, Richard and George Cadbury decided to move their expanding business from Birmingham's City Centre into the countryside four and a half miles away.  http://www.cadburyworld.co.uk/cadburyworld/plan/pages/localarea.aspx 

Asda local community 

http://your.asda.com/community - Asda have their own website for their local community. 'We’re going to be stepping up our work in the community in 2012 with a big new initiative called Community Life. Each store will have a Community Life Champion to work one day a week with community groups and local organisations.

They will arrange events in store and inspire colleagues and customers to get involved in local community work.'  

How local community influences aims: 

Local communities affect the aims of businesses as they are like the customers for the business as the people from that particular area shop at the business, therefore they influence the aims on things such as cheap prices on goods as this is what customers want and need. 
Also, the local community influence a business' aims on employment opportunities. This is because a business wants to thrive and be successful however with people working within the workforce there will be no business running, therefore the local community are the people who also work within the business as they live near to where they work and they new employment chances. 

How local community interests may conflict with other stakeholders: 

The local community can often suffer at the hands of a large company through the negative externalities of pollution, noise, congestion and the building of new factories in areas of outstanding beauty. However, if the business faces strong protests from residents and from pressure groups concerned about its actions, then it may decide to relocate to another area, causing much unemployment and a fall in investment in the community it leaves behind.

OWNERS AT CADBURYS & ASDA

Owners

Owners are people who own and have invested money in to the business.  The number of owners and the roles they carry out differ according to the size of the firm. In small businesses there may be only one owner (sole trader) or perhaps a small number of partners (partnership). In large firms there are often thousands of shareholders, who each own a small part of the business. Owners are internal stakeholders. This is because they work within the business and have an influence. Similar to those interests expressed by employees, the persons who run the business will have similar concerns. Depending of the liability status of the entity, the owners might have risk to their personal wealth and would therefore have this additional concept to consider. Owners are the most important stakeholders. They decide what happens to the business.They're the ones who make a profit is the business is successful. In a sole trader or a partnership, they are the owners. In a limited company, they are the shareholders.

Cadbury owners

Cadbury is owned by Kraft Foods. Cadburys is subsidiary of Kraft foods. This means that a subsidiary company subsidiary, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock. Kraft Foods Inc is an American multinational confectionery, food and beverage company. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide, for example: Cadbury. Kraft Foods is a public company. A public company or pubic liability company is a limited liability company that offers its securities (stock/bonds/loads, etc.) for sale to the general public, typically through a stock exchange, or through market makers. Public companies, including public limited companies, can be either unlisted or listed on a stock exchange depending on their size and local legislation. Which means that Cadburys is a PLC (Public Limited Company) that means they allow shareholders from the public.

Shareholders are another very important stakeholder group. They should be kept well informed of the financial state of the organisation, so as to encourage them to keep investing in the company. If they are not confident that they will get a good return on their investment, they may sell their shares and there won’t be enough money invested in the company. Shareholders want the company to do well – the better it does, the more money they stand to make.

What a Cadbury owner might say: ‘I am a shareholder in Cadbury. That means I own part of the company. I get a share of the profit, called a dividend, every six months. I want Cadbury to do really well because if they do it will make a good profit. Which means my share will be good too. It is also important to me to know that the company is behaving ethically. I like to know, for example that they treat their staff and their suppliers in the third world properly.’

How Cadbury owners influence aims:

Owners influence business decisions, as they desire a return from the company in the form of profits so owners make decisions to make this possible. Owners have a big say in how the aims of the business are decided, but other groups also have an influence over decision-making. For example, the directors who manage the day-to-day affairs of a company may decide to make higher sales a top priority rather than profits.

This news article shows that the Cadbury Owners, Kraft Foods have made new job vacancies. This will influence aims and objectives of the business as there will be a better production line which will benefit the owners and shareholders as they are looking for return on what they have invested in the business. - http://www.bbc.co.uk/news/uk-england-birmingham-14946665

How Cadbury owners interests may conflict with other stakeholders: 

http://www.dailymail.co.uk/news/article-1249728/Cadbury-sacks-400-workers-Kraft-breaks-promise-shut-factory.html - This article shows conflict between employees and owners as the owners of Cadburys (Kraft Foods) have sacked 400 employees which means that employees will not be pleased and happy therefore it created conflict between the employees and the owners of Cadburys. 

Asda owners 

Asda became a subsidiary of the American retail giant Wal-Mart, the world’s largest retailer, in 1999. Walmart branded as Walmart since 2008 and is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. The company is the world's third largest public corporation. It is also the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart remains a family - owned business, as the company is controlled by the Walton Family who own a 48% stake in Walmart. Therefore, Walmart is the parent and Asda is the subsidiary. This means that subsidiary, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that

owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company.  

Shareholders are another very important stakeholder group. They should be kept well informed of the financial state of the organisation, so as to encourage them to keep investing in the company. If they are not confident that they will get a good return on their investment, they may sell their shares and there won’t be enough money invested in the company. Shareholders want the company to do well – the better it does, the more money they stand to make.

How Asda owners influence aims:

Owners influence business decisions, as they desire a return from the company in the form of profits so owners make decisions to make this possible. Owners have a big say in how the aims of the business are decided, but other groups also have an influence over decision-making. For example, the directors who manage the day-to-day affairs of a company may decide to make higher sales a top priority rather than profits. 

How Asda owners interests may conflict with other stakeholders: 

http://www.guardian.co.uk/commentisfree/2009/oct/12/bananas-supermarkets-asda-price-war - This shows that there is conflict between the owners and the customers. This is because the owners have increased the price of bananas and the customers are used to cheaper prices, therefore this is conflict. Also, there would be conflict between shareholders and customers because the owners and shareholders want good return on their investment however the customers want cheap prices. This means that the shareholders will only be getting a good return on investment if the prices are slightly higher. However customers will disagree due to them wanting cheaper prices and they want to save money. 

SUPPLIERS AT CADBURYS & ASDA

Suppliers

Suppliers are people who sell products, raw materials or give a service to a business.  Good relationships with this stakeholder group can help a company’s operations run smoothly. By working well with suppliers, businesses can encourage suppliers to prioritise their account, deliver services and products on time and be as efficient as possible. Suppliers have an interest in the company they supply doing well – if the company does badly they could lose a customer. A supplier is an external stakeholder. The reason why suppliers are an external stakeholder is because they are group outside of the business who have an influence.

Cadbury suppliers

This is what a Cadbury supplier might say:  We are a group of Cadbury’s suppliers. Some of us supply Cadbury with the ingredients to make its products. This lady here sends Cadbury its cardboard boxes to pack all the products into. This guy here prints the wrappers. And this chap here supplies Cadbury with spare parts for the machines when they break down. Some of us are highly dependent on business from Cadbury. If Cadbury stopped buying from us we could be in trouble. We also expect Cadbury to be efficient when dealing with us. We like them to pay us on time because some of us are only small businesses and could have cash flow problems if the company was a slow payer.

The Cadbury supplier would be supplying the business with the ingredients to make the chocolate such as: milk, cocoa beans, sugar etc.. Firms get the resources they need to produce goods and services from suppliers. Businesses should have effective relationships with their suppliers in order to get good quality resources at reasonable prices. This is a two-way process as suppliers depend on the firms they supply.   
       

How suppliers influence Cadbury aims:

Suppliers can affect your availability of product based on their inventory or delivery time. Suppliers can affect your costs based on their prices changing, their credit terms, etc.

•  Quality: Supplier components can positively or negatively affect the quality of your product. Higher quality increases customer satisfaction and decreases returns, which adds cash to the bottom line.
• Timeliness: Their timely deliveries are crucial to how customers view your reliability. A quick turnaround can become the key to minimizing your inventory, which in turn translates to less risk of inventory obsolescence and lower cash needs.
• Competitiveness: They can give you the one-up on your competition based on their pricing, quality, reliability, technological breakthroughs and knowledge of industry trends.
•   Innovation: Suppliers can make major contributions to your new product development. Remember, they live their product more than you do; they're working to be on the cutting edge of innovation for their product. The good ones will understand your company, its industry and needs, and can help you tweak your new idea.
• Finance: If you've proven to be a considerate, loyal and paying customer, you may be able to tap into your suppliers for additional financing once you hit growth mode--or if you run into a cash crunch. That financing may take the form of postponed debt, extended terms on new purchases, a loan, or an investment in your company.
All of these improve your cash position. - http://www.entrepreneur.com/article/206530
• Suppliers can decide whether to raise prices for orders which can obviously affect a firm's profits. Also a supplier's reliability could affect production. If orders do not arrive on time finished goods may not be ready for shipping to customers. Suppliers can also change credit terms which may have cash flow issues for a company and they could decide whether or not to allow discounts for bulk orders or loyal customers. 
  
  
  Suppliers can influence a business by the quality and price of what they supply, as well as the speed at which they supply it. If there are few suppliers offering the same product or there are no substitutes, a supplier will have a lot of power over a business demanding this product, and can raise its prices. However, if there are many suppliers of a particular product or service, it is the business which has power over the supplier.
  
  
  
  
  http://www.supplymanagement.com/analysis/features/2009/cadburys-to-improve-supplier-conditions-with-fairtrade-agreement/ - article to show Cadburys to improve supplier conditions with fairtrade agreement. 
  
  
  How Cadbury suppliers interests may conflict with other stakeholders: 
  
  
  There would be conflict between the suppliers and customers because the customers want cheap prices and sometimes the suppliers cannot get the goods or ingredients at a cheap price. If the suppliers cannot get the goods at a cheap price then. 
  
  
  
  

  Asda Suppliers

  
  

  Asda offer their customers a wide range of products and items. For Asda to actually have these products and items to offer, Asda need somewhere to get them from, this is where the suppliers come in.

  
  

  Asda have many different suppliers because there are many products that Asda offer to the public. Some of the suppliers that Asda have are:

  
  

  Crisps - Walkers

  Chocolate - Cadbury

  Chocolate - Nestle

  Drinks - Coca Cola

  Water - Volvic

  
  

  Those are just some of the suppliers at Asda and they offer different products. Suppliers of Asda are also external stakeholders as they influence the business to make profit by providing them with their products. They want the business to make profit, as they want other orders and to get their money as quick as possible. Asda gets most of its products from suppliers such as: Cadbury, Kelloggs, Coca Cola and many other well known branded products. Without these suppliers Asda wouldn’t have good enough goods to meet their customer’s demands, which means they would end up loosing out on profit.

  
  

  Asda have an actual website for their suppliers to visit and to register if they want to be potential suppliers for the supermarket. The website for the Asda suppliers is http://www.asdasupplier.com/. The website gives information on what Asda is and what they do and general information about the business. For example: 

  
  

  ‘The purpose of this website is to aid communication between ASDA and our supplier base. It should be a way for us to keep you up to date with what’s happening in ASDA, as well as a place where you can find contacts, policies and resources to help you get things done in ASDA. Whether you are a new supplier starting to work with us, or an existing supplier with specific queries, the site should be here to help you along, smooth our working relationship, and answer your questions. We’ve built the site with input from long-established and new suppliers, but if you have questions that we haven’t managed to answer here, please let us know.’ -  http://www.asdasupplier.com 

  How suppliers influence Asda aims:

  
  

  Suppliers can affect your availability of product based on their inventory or delivery time. Suppliers can affect your costs based on their prices changing, their credit terms, etc.

  •  Quality: Supplier components can positively or negatively affect the quality of your product. Higher quality increases customer satisfaction and decreases returns, which adds cash to the bottom line.
  • Timeliness: Their timely deliveries are crucial to how customers view your reliability. A quick turnaround can become the key to minimizing your inventory, which in turn translates to less risk of inventory obsolescence and lower cash needs.
  • Competitiveness: They can give you the one-up on your competition based on their pricing, quality, reliability, technological breakthroughs and knowledge of industry trends.
  •   Innovation: Suppliers can make major contributions to your new product development. Remember, they live their product more than you do; they're working to be on the cutting edge of innovation for their product. The good ones will understand your company, its industry and needs, and can help you tweak your new idea.
  • Finance: If you've proven to be a considerate, loyal and paying customer, you may be able to tap into your suppliers for additional financing once you hit growth mode--or if you run into a cash crunch. That financing may take the form of postponed debt, extended terms on new purchases, a loan, or an investment in your company.
All of these improve your cash position. - http://www.entrepreneur.com/article/206530
  • Suppliers can decide whether to raise prices for orders which can obviously affect a firm's profits. Also a supplier's reliability could affect production. If orders do not arrive on time finished goods may not be ready for shipping to customers. Suppliers can also change credit terms which may have cash flow issues for a company and they could decide whether or not to allow discounts for bulk orders or loyal customers. 

  
  
  Suppliers can influence a business by the quality and price of what they supply, as well as the speed at which they supply it. If there are few suppliers offering the same product or there are no substitutes, a supplier will have a lot of power over a business demanding this product, and can raise its prices. However, if there are many suppliers of a particular product or service, it is the business which has power over the supplier. 
  
  http://www.supplymanagement.com/news/2012/asda-buys-into-closer-collaboration-between-suppliers/  - This news article shows how Asda have told their existing suppliers to work together in order to reduce cost, waste and risk. 

How Asda suppliers interests may conflict with other stakeholders: 

There would be conflict between the suppliers and customers because the customers want cheap prices and sometimes the suppliers cannot get the goods or ingredients at a cheap price. If the suppliers cannot get the goods at a cheap price then.