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Describe the different stakeholders who influence the purpose of Tescos

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Introduction

´╗┐Unit 1 Iona Rifai P2 ? Describe the different stakeholders who influence the purpose of two contrasting businesses Stakeholders are anyone that is affected by a business or has an interest in it. Stakeholders are affected by certain decisions made by companies, whether it is positively or negatively. They can influence a company and the decisions that they make. Customers want good quality products and services for affordable prices. They like to see improvements constantly being made so that they feel they are getting value for money. Quite often, people associate themselves with certain brands they buy. Organisations and businesses are dependent upon their customers. If they don?t develop customer loyalty, they could begin to lose their customers. Customers like to identify with the brands they buy. Tesco?s customers have a huge influence over the business. They use their customer?s insight to make any appropriate and needed changes to their business. Customers can give their ideas, views and comments in order to let Tesco know how they?re doing as a company and what improvements they feel need to be made etc. Tesco don?t offer the right services, products and promotions, then their customers will end up shopping in alternative stores. Shareholders are often the most important type of stakeholders. ...read more.

Middle

Pressure groups have an influence over Tesco because if the business faces an investor revolt, then it is very concerning as it will not only make the business look bad, but it can also put the company at risk of being shut down. Pressure groups also have the ability to make people consider shopping at another chain of supermarkets, which means that Tesco could lose many of its customers. Employees are another type of stakeholders that have an influence over businesses. They work for businesses and gain a wages and salaries. This means they have a higher sense of security for themselves and any family as they have a job. They aim to move up in businesses they work for, in order to earn a higher wage. They take pride in their work and businesses need them to get work done. They seek security of employment, promotion opportunities and good rewards for the work that they do. Employees often like to work for a company that they believe in and are proud of. Employees are internal stakeholders, and have a big influence over Tesco, as they are the people who help the services and products to get sold. If employees refused to work, or went on strike for example, the business would be at high risk as there wouldn?t be people to sort out deliveries, serve customers and do any required things that are in their job description. ...read more.

Conclusion

The government?s main interests are to do with making sure the store is operating legally, tax receipts and jobs. The government create the rules and frameworks that businesses have to work within. Now and again, they change the rules resulting in businesses having to change the way in which they operate. Their different policies can affect businesses in different ways.for them, the want to see a business becoming very successful and taking full responsibility for their actions and looking after the welfare of society. The government can influence Tesco in different ways, such as giving them planning permission and sorting out taxes etc. For example, if Tesco want to open up new stores, they have to contact the government to gain planning permission to do so. Taxation policy that is in place by the government affects business costs. An example of this is a rise in corporation tax which is based on business profits, has the same effect as it would if there was an increase in costs. Another government policy that can affect Tesco is interest rates. If the government decides to raise interest rates, the cost of the business borrowing money will rise and can cause consumers to spend less, which would influence Tesco do to a fall in sales. They have to abide by any changes that the government makes in regards to general rules, which could influence the way the run their business. ...read more.

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