Stakeholders of Tesco and Demelza house

by liamwheelz (student)

Unit 1 P2

Introduction

A stakeholder is anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business.

In this task I am going identify the different stakeholders for the two different organisations I have chosen to research, them being Tesco and Demelza house. I will be outlining why each of the stakeholders are interested in the business, what they want from the business and how they influence the business. I will obviously be outlining this for both of the businesses I have chosen to research. I will explain the stakeholders of Tesco first then move onto Demelza House.

Tesco

Tesco states that it is a caring company and concerned it does the right thing for all of its stakeholders. They promise to listen of everyone involved in their company and act on any concerns which are raised. Here are the main stakeholder’s Tesco work with:

Customers

Customers are external stakeholders and have a stakehold in the company operating well. The reasons being having a pleasant place to shop with reasonable prices and a good variety of merchandise makes them more inclined to use the stores. They influence the business by using the stores to shop which in turn increases profits for the company. Tesco keeps customers interested in being stakeholders by listening to their complaints and concerns; it is in their interest to have happy customers who want to spend money in their stores. If Tesco weren’t to keep customers interested in the business then they would lose them to rival stores such as Sainsbury’s. One of the aims and objectives of Tesco is to include the whole community including customers in any decisions such as building new stores it which services they want provided.

Staff

Staff are internal stakeholders and have a large stakehold in the company for which they work. It is in their interest to provide an excellent service for their customers as more customers means increased profits which creates an expanding business with more stores so creating more jobs. The more successful the business the higher the wages could be. It is also in the interest of the staff to work well as individuals as well as team members as this makes their jobs more secure by showing a commitment to their place of work. Tesco have a staff forum where members of staff can air their individual views about the company. On the forum they can make suggestions on how the company is run, this shows that staff play a major role of the stakehold.

Suppliers

Suppliers are classed as an external stakeholder who would be expected to provide good quality merchandise to Tesco at a reasonable price and in a large quantity (bulk). The suppliers could influence the decisions of Tesco, for example if the ordered supplies are not delivered on schedule, they may lose their contract to supply their goods to Tesco. They want the business to succeed and expand so they can continue to supply and have increased orders for supplies. The suppliers would aim to have prompt payment which is more likely from a thriving business.

Investors

Investors are again ...

This is a preview of the whole essay

Suppliers

Investors

Investors are again stakeholders; they have no influence on the day to day running of the company. They do however have a large influence over the building of new stores and large expansion decisions as these would require a large investment from them. They have an invested interest in the company being successful and generating healthy profits as they want the money which has been invested to be paid back. Investors play a major role in decision making especially ones which would require large investment. They will also have an interest in how Tesco is portrayed to the local community.

Managers

Managers are internal and have a large influence over the way the store is run and which staff are hired. Their maybe some conflict between managers of a large Tesco store as there would be more than one manager to cover different departments and shifts. They have an interest in the success of the company because if the store is successful there salary would go up as it shows that they are carrying out their job at a high standard and encouraging these profits. Managers usually operate on the ground floor and are there for any comments or queries about the store made by customers. These comments and queries are sometimes very useful for the running of Tesco as sometimes this can improve the running of the business as the manger will put the ideas together an interpret them into the company to improve and expand the store.

Local community

The community is external and is a stakeholder of any business including Tesco as they employ local people. The community would have a say in the running of a store like Tesco with things such as noise, for example late night deliveries and work expansion projects. Local people within the community who enjoy the experience of shopping at Tesco would increase sales for them by recommending the store to family and friends. Tesco also plays an active role in community projects such as computers for schools which improves their aim to be a respected company within the local community.

Employers

The employers of Tesco are internal. Tesco invest a lot of time in employing the right people for their broad range of roles. They want to expand their business and put a lot of time and energy into choosing the correct people which is obviously very important for Tesco. They want to employ people who have the best interest of the company in mind and will commit to making Tesco a success. Once employed Tesco as an employer offer training to improve their employee’s full potential and offer promotion to conscientious employees. Tesco’s core element of their business is quoted as ‘applying a collective knowledge to meet customers changing needs’. This supports the effectiveness of employing the right people for the job as this creates success for the store.

Trade unions

Trade unions are an external organisation not connected to Tesco in anyway, they are purely there to support employees and staff. Employees of Tesco can if they want to become members of a trade union. Trade unions would have an influence on how Tesco operates by negotiating good working conditions such as working hours, facilities and fair pay. A trade union could affect the aims and objectives of Tesco by insisting on higher wages for unsociable hours, this could affect the long hours Tesco remains open for.

Demelza House

Demelza house is totally different from a company as it has different aims and objectives as it is not in existence to make massive profits. The stakeholders of Demelza house are made up of direct and indirect stakeholders. They are committed to providing the best possible care for the children they cater for.

Customers

The Customers of Demelza house are the most influential stake holders as the whole charity is run around their needs. They are influential on the aims and objectives of Demelza house depending on the services they require, the charity would have to adapt their aims to suit the customers. The customers would require from the charity efficient care, comfort and a feeling of wellbeing.

Parents and family

These are external stakeholders. The parents and family of the customers (children who use Demelza house) are just as influential as the actual customers as they are sometimes their voice. The parents and family want the best service they can get for their children. This makes them able to influence the services provided by Demelza house to suit their individual children’s needs.

Fundraisers

Fundraisers are external stakeholders; they play a major role in the success of Demelza house. By raising funds for the charity to purchase goods such as hospital beds, supplies and medicines they play an essential role. The success of fundraising at Demelza house has helped mould it into the charity it is today. Their day to day efforts have an influence over the aims and objectives by allowing them to happen. If the fundraises did not raise enough money the charity would cease to exist. The fundraisers aim to think of new ways to raise money for the charity so it can operate effectively and provide the very best services.

Employees

Employees are committed to providing a high level and caring service to their customers. They are conscientious, well trained and professional towards the customers and their families; this upholds the aims and objectives of Demelza house by providing the very best service they can. The charity provides training to those employees who wish to further their experience; this again helps provide an even better service. Some employees work on a voluntary basis meaning that they work unpaid which shows a real commitment to the charity.

Management team

The management team are internal stakeholders they are committed to sourcing the best possible supplies for the customers at the best price or donated if possible. They oversee the effectiveness of the employees on a daily basis, they are committed to ensuring the best possible service for the customers and the most efficient distribution of funds. The management team provide training for staff where it’s needed and organise CRB checks to keep the customers safe and secure. They manage the finances of the charity and are committed to providing the very best service with the money which has been raised through fundraising and keep accurate records of the patients as well as finances.

Suppliers

The suppliers sometimes donate equipment and supplies to enable the charity to operate efficiently. They can influence the running of the charity if the equipment is faulty or very expensive. If supplies are delayed in delivery this can also have an adverse effect on the running of the charity and the services it aims to provide. The suppliers have little interest in the success of the charity as goods are ordered in small and intermittent quantities, although it could increase their standing in the community if goods are donated.

Patrons

Patrons are indirect stakeholders who raise the profile of the charity. They help with fundraising and sometimes have an interest in a particular charity having had a relative or friend who has needed support from the charity to which they are a patron. They want see the charity succeed its aims and objectives so they can provide a good service to many more people the trustees can influence this success just by lending their name to the charity.

Trustees

The trustees are direct stakeholders, they offer their skills and influence to the charity. The board of trustees help select members of the management team to work at the charity; they are made up of professional people many holding OBEs from all walks of life such as financial investors, doctors, and former diplomats. They offer their services so the charity can operate as efficiently as it can, they can influence who works there and which services if offers so they probably are the most influential people involved with the Demelza House.