explain how each stakeholders or groups influence a business - Which in this case, will be Sainsburys.

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Dilan Patel 6170                                                                                Applied Business

                                                                                                                  Unit2

                                                                                                               Miss Sambi

Section A, Unit 2 – Influences

As you have noticed, stakeholders have interests in the business but they also have influences. In this part of the Unit I will explain how each stakeholders or groups influence a business - Which in this case, will be Sainsbury’s.

Shareholder

Shareholders influence on Sainsbury's would be the actual share prices. This is because the shareholder will want the share price to increase, as they want its “value” to be greater. They can also have some sort of power and influence within Sainsbury's if they posses a large share, which could lead to a take over.

Employees

Employees have an influence on Sainsbury's, but only to an extent. This is because the employee has a limited amount of influence to Sainsbury's as it is up to the employer. The employer will determine the amount of influence through:

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  • Training that they have received.
  • Rules and Regulations.
  • The contract between the employee and the employer. Which include pay and working conditions, fringe benefits like a company car, discounts, and travel/health insurance.
  • Promotion.
  • Job security.

However, the employee does have the influence which affects the reputation of the business and the quality of the service provided, as if this is not sufficient for the customer, he/she will go some where else.

Managers

The mangers influence in Sainsbury's is to carry out day to day tasks and help the efficient running of the business. Their ...

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The student has selected Sainsbury's as their case study, however there haven't provided the examiner with any images of the website or the brand to enable the examiner to visualize the report. The writing style is quite good, however the writing is within bold and the writing's should be as 'standard'. This would allow the examiner to read the report with additional ease.

The student has created the section 'employees', and further down the report states 'Managers', which is slightly odd. Mangers are employees of the company. These two sections should be combined together. It's strange that the student didn't asses this, and noticed that there are the same thing. The section 'Suppliers' lacks in-depth understanding. I believe that the bottom line is that if the store doesn't have any products in, the business will beocme bankrupt. Suppliers are able to refuse business with Sainsbury's, and it's vital that the relationship between the two are strong and reasonable. It's usually a give and take relationship, as the supermarket may want a lower price, although the supplier may want extra advertising within the store for the lower price. The relationship is key for the retailer and there have a large amount of influence. The section 'Customers' is another vital influence. As the bottom line, is the sales numbers. If one product isn't selling, this should be removed from the supermarkets and replaced by a product which consumers demand from the store. Failure to keep 'in touch' with the consumer can result in loss of income. Consumer's often select their best brands/products, which results in consumer have major influence over the products that are within the store.

In summary, the report is quite good. The report states a number of stakeholders, and writes a little about each one. However the sections 'Shareholders', 'Suppliers' and 'Customers' are lacking detail. These three sections are the vital areas which have large influence over the business, however these sections are too vague. The section 'Shareholder' should be the largest of all other sections, as shareholder's own the business. The owners of any business have the control on how the business operates within the near future above all other stakeholders. There are a number of methods which shareholders would be able to control the company. The most common of which is a meeting known as 'AGM' (Annual General Meeting), whereby all major shareholders will visit the office and discuss the business going forward. The meeting will contain all senior employees, including the CEO and the shareholders will suggest a number of steps to be undertaken. The sections 'Local Community', 'Pressure Groups' and 'Government' do not have a major role within Sainsbury's, and I feel that the student has covered these areas more than some of the other major areas such as Shareholders, Suppliers and Customers. These areas should have been covered in more detail.