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Discuss the impact of stakeholders onTesco PLC and Process Instruments (UK) Ltd.

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´╗┐Impact of stakeholders on the purpose of 2 contrasting organisations Stakeholders are very influential people who range from individuals, organisations and they are people who have an interest in the decisions that businesses make. Stakeholders can be either external stakeholders or internal. The external stakeholders are groups who are outside the business and internal stakeholders are groups within the business who work in conjunction with the business. The stakeholders can affect the purpose of an organisation and I have chosen two businesses to study how the stakeholders can influence them. The businesses I have chosen are; Tesco PLC and Process Instruments (UK) Ltd. The purpose of Tesco is to maximise profit, expand to become a bigger company, provide a retail service and sell goods to the customer therefore they operate in the tertiary sector. Tesco do however; offer other services such as banking and pet insurance as well. The purpose of Process Instruments is to manufacture process instrumentation locally through research and development which will help the local economy. Although they sell their items, their main aim is to manufacture products so they are in the secondary sector. Customers Customers are external stakeholders and they want the company to produce products of great quality at a great price for them and they love to see improvements that give them better value for money and this creates customer loyalty towards a business and this can be done by stocking the correct items since customers tend to identify certain brands and stick to them because they are tried and tested. ...read more.


Trade unions represent the interests of groups of employees and they strive to secure higher wages and better working conditions for their members. Employer associations are the employer's equivalent to trade unions and they represent the interest of employers in specific industries. Tesco are able to keep the trade unions happy by providing competitive salaries for their workforce and making the work environment enjoyable and pleasant. The working hours for employees are comfortable and the employer has a legal responsibility towards their employees so they follow the employee rights. Employer associations are made up of businesses and employers who all pay annual fees for their benefits. They negotiate with trade unions on behalf of their members and give give advice on employment laws, health and safety, taxation laws etc. Trade unions and employers associations have no influence on Process Instruments because the employees choose not to have them however the choice is still available. This is because it is a small business with only 19 staff members and the atmosphere is friendly because they all know each other and it feels like a closely knit family. Local and national communities Also external stakeholders .The actions of a business can have a drastic effect on communities which can be positive or negative such as creating jobs in a town where the unemployment rate is high or they could upset the community e.g creating noise pollution by having lots of deliveries early in the morning and disrupting the locals if the business is close to a residential area. ...read more.


pollution arriving therefore they appealed against Process Instruments' application of change of purpose and wanted to restrict the proposed trading hours of Process Instruments. For Employees supported the move because it meant they could have more space to work to work. It could make their job easier and could help them create the products faster and better. Also, it would allow all staff and shareholders to meet in one boardroom. They would also have better facilities Government They would like to see Process Instruments move as it could benefit the company and since it could benefit the company as they are privately owned- they could pay more tax since they could export more goods and the government offers grants to companies to Process Instruments as they focus on Research and Development which is a key aim of Process Instruments Burnley Council wanted Process Instruments to move because it would create jobs in the area and boost the local economy and improve the area with the money coming in. The council helped Pi with the planning permission. Against- Local community The local community didn?t want the company to move because it could cause noise pollution whilst deliveries were coming in because the premises was located in a residential area Shareholders- Although the move is in the best interests of the company, it would have a negative personal effect on Mike Riding as Process Instruments have abandoned the old building as they have not found anyone to take over so he still has to pay for it. ...read more.

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