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Choose a business and idenyify the stakeholders. Investigate their rights and responsibilities.

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Introduction

Stewart McGill STAKEHOLDERS CHOOSE A BUSINESS AND IDENTIFY THE STAKEHOLDERS. INVESTIGATE THEIR RIGHTS AND RESPONSIBILITIES. Every business has stakeholders, from the smallest shop to the biggest of multi-nationals without stakeholders these organisations would fail. Stakeholders are people who have dealings with a business, and regardless of the size of the business, there are always people who are involved with its running. Throughout this essay I'll look at stakeholders are involvement in a company, their motives for being a stakeholder, their responsibilities and their moral and legal rights. I have chosen to look at the stakeholders of Tesco. Although there are stakeholders within any business, larger companies have more and for this reason it's vital the company cares for and looks after these people. Tesco PLC have got many stakeholders, including... * Shareholders * Employees * Customers * Creditors * The local community * Suppliers Having so many stakeholders, Tesco admit that it's hard to satisfy everybody, but given its reputation, it can't fail with any one of these groups. There are aims that companies have to maintain peace between stakeholders as well as ensuring the highest profit possible. Shareholders own a proportion of a business. Although people own varying numbers of shares, shareholders expect to receive dividends. At the end of each financial year, they want some of the company's profit on every share. Without shareholders it'd be hard for a company to function because cash flow would be poorer. ...read more.

Middle

It is likely that customers will transfer companies in order to purchase better quality essentials. Despite a market share of 27%, Tesco own far less than 27% of all stores in the UK, suggesting that in the current climate people will travel. Customers will always aim to buy the best quality products at the lowest price. The customer is so important to the company these people who are gain shareholder's such high profits. In my opinion these people are only shopping with Tesco to save money and as well as a loss in customers due in other supermarkets, Sainsbury's, M&S and ASDA offer the best service, and should the country become less rich, these companies can expect more customers. TESCO should therefore do more to improve service before it is too late as this is also what people want nowadays. The customers have help TESCO remain as the number one supermarket in the UK however, more demands should be made in order to increase the quality of foods available. Without employees, no company could operate therefore a good relationship must be kept. Tesco employ 195,000 British people with many different requirements. People work to earn money and it was established that the third worst paid job in Britain is a checkout assistant in a supermarket. Shareholders want high profits and customers want savings, therefore TESCO try to maintain low expenditure on staff. Although TESCO offer the highest wages for shop-floor colleagues compared with other supermarkets staff feel de-motivated by the difficult and stressful ICT based perpetual inventory jobs that must be carried out. ...read more.

Conclusion

I feel that the money put in to making locals accept the company is often wasted and more money should be invested into new stores in order to please the many millions of people who are unable to benefit from the low costs offered by TESCO. The communities often cause problems for TESCO and from a business point of view; this leads to ill ease and affects other stakeholders as prospective employees feel threatened by the way that the community perceives large companies. I also feel that TESCO should meet their corporate social responsibility within the coming years to aid those in other countries. The successful selling of fair trade products would help in promotion, satisfy activists within the community as well as gain free and complimentary media coverage. Throughout this essay I have looked at the way that stakeholders help mould a company. TESCO have been relatively lucky by the support that they are generally shown by all of the stakeholders. Through the successful analysis of each stakeholder's needs successful trade-offs have occurred. The continuous development of one of England's most well respected companies has helped many of the stakeholders. The shareholders have seen massive returns on their investment, whilst TESCO can be grateful for shareholder's investment. Employees help in offering good service and the smooth running of a modern ICT based company, suppliers help in getting the products to the consumer at the lowest prices everyday whilst the community benefit from the corporate social responsibility TESCO has. Keeping the peace is absolutely vital because if the relationship between any of these stakeholders was broken, TESCO would be in disarray and the company would eventually shatter. ...read more.

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