Stakeholder Relations

1534 Words4 Pages

Brief

Many organisations are addressing the relationship they have with stakeholders. Select an organisation that is currently changing its policies towards stakeholders and, acting the role of a key stakeholder representative prepare a positioning statement/report that summarises key issues for your supporters.

Background

In 1875 J H Mills in Bristol opened a small family grocery store, and in 1900 became a limited company with 12 shops. J H Mills Ltd. turned into Gateway, in 1950, when a major finance house became the major shareholder. The J H Mills shops were then converted to become self-service type supermarkets. Throughout the late 20th century the amount of stores increased dramatically with takeovers and different acquisitions across the country. In 1996 Gateway food markets turned into Somerfield and was floated on the stock exchange and became a plc.

The Somerfield group is made up of four separate businesses, which together operate over 1400 stores nationwide in the UK. Firstly, the Somerfield Stores division consists of around 1,000 stores incorporating Somerfield Stores and approximately 450 Kwik Save Stores. Somerfield is a modern high street retailer offering fresh foods, groceries, and household needs.

The Kwik Save division was introduced to Somerfield when they announced their unconditional merger on March 20, 1998. Kwik Save's philosophy is to provide a full range of quality products at the lowest price on the high street. The idea was all about no frills low pricing. Somerfield started a £1 billion programme to convert Kwik Save stores to Somerfield and also modernising the original Somerfield stores.

Somerfield's third business is the Convenience division, a group of about 100 stores, ideal for 'top-up' shoppers, offering a range of groceries and provisions in a small store format located in convenient positions.

The last of the businesses is Somerfield 24-7, a new, recent venture that allows people to shop for groceries without going into any of the supermarkets, by using the phone, Internet or interactive television and getting the goods delivered to their door.

I am a representative for the employees of Somerfield plc.
Report

On Thursday November 11 Somerfield announced the sale of up to 490 stores and a reduction in its central office and distribution business. The board has decided to focus Somerfield operations on a potential £30 billion neighbourhood food retailer market. Somerfield currently has approximately 10% of this market and believes it can increase its market share by further emphasising the importance of fresh food, improving the ease of shopping and developing a more responsive culture from its employees.

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