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Choose a business and identify the stakeholders - Investigate their rights and responsibilities.

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Introduction

Tom Almond STAKEHOLDERS CHOOSE A BUSINESS AND IDENTIFY THE STAKEHOLDERS. INVESTIGATE THEIR RIGHTS AND RESPONSIBILITIES A stakeholder is a person who is affected by the activities of a company. Stakeholders include, employees, suppliers, creditors, customers, shareholders and local communities. Every company has stakeholders, ranging from a local newsagent, multinational companies such as McDonalds. Though obviously the number of stakeholders varies with the size of the company. I have decided to look at the stakeholders of the company Tesco Plc. I have chosen to this company due to its large size. Tesco plc must try to keep all its stakeholders satisfied, which, due to the huge number is close to impossible, but they strive to do so. Each of the different groups of stakeholders wants different things, the aspirations of each group of stakeholders, is usually for their benefit, for example the shareholders, will want profit maximization, whilst the customers will want the lowest possible prices and the highest possible quality. Tesco is a Plc, which means that ownership of the company is divided up between all the shareholders and the decisions are made by the board of directors with the shareholders best interests in mind. ...read more.

Middle

Tesco also, rather than paying higher wages, which would displease the other stakeholders, offer pension schemes, which cost Tesco relatively little, but provide motivational factors, such as job security. They also have award schemes to recognise and motive staff who are performing well, this also if relatively cost free, and catch free, since it does not affect any other stakeholders negatively. Customers are the most important stakeholders in every company, since it is these who provide the means to satisfy every other stakeholder. Customers help satisfy all the other stakeholders because, if customers are unhappy with the company they will not shop there meaning the shareholders would not gain though owning shares, thus few would be purchased. The employees would suffer due to poor relations with customers since fewer would be needed. Hence without customers there would be no other stakeholders, other than the local community. Creditors are people or companies who the business owes money to. They are important stakeholders because they allow companies such as Tesco to purchase products when the capital may not be readily available, they do this on the account that the money will be recuperated though the sales of these products and then will be repaid. ...read more.

Conclusion

Tesco's scheme to combat unrest in the local communities is that they offer 'free' computers for school, if customers spend a certain amount. This not only benefits the local community, it gives Tesco additional publicity, relatively cost free, since customers will be more willing to spend a little extra because if they do they are contributing towards a good cause, this bolters the companies profits, thus recuperating the costs of the scheme. This also satisfies other stakeholders, the shareholders will possibly gain more in the form of dividends due to the increase profits from the greater publicity and customer spending. The employees will be better motivated because they will feel that working harder will benefit a good cause, since they will be encouraging customers to purchase greater quantities of products. This scheme will also encourage suppliers to supply Tesco ahead of other supermarkets, since being the supplier of a company which helps the community would add to their image. Throughout this essay I have looked at how stakeholders form a vital part of every company with an in depth look at how Tesco's treatment and management of its stakeholders are vital to Tesco's success. I have discovered the fragile balance between all the stakeholders and how one dissatisfied stakeholder will cause the majority of the other stakeholders to become dissatisfied. ...read more.

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