Tesco's different stakeholders are:Employees
Stakeholders
Stakeholders are a particular group of people with an interest in the business. These interests are all different and each individual group has a different concern. There are a lot of different stakeholders. Tesco's different stakeholders are:
. Employees
2. Customers
3. Pressure Groups
4. Local Community
5. Government
6. Suppliers
7. Financiers
8. Shareholders
Customers
A customer wants to buy high quality goods and wants to get them cheap. They want a variety of products to choose from and expect them to come from a clean, friendly environment.
The customers want all these things and if Tesco provides them then they will gain more customers. They also need their customers as they are the source of income as they buy products and act as a pressure group to the business. They act as a pressure group because they put pressure on Tesco to meet their needs. These can be such things as improving their store and even expending it. Tesco receive comments from the customers which make them improve their business and making themselves more competitive. The customers influence Tesco by these comments and Tesco are encouraged to improve their store for the sake of their customers. Tesco has responded to their customers influence by making changes to their store to suit the customer's needs.
The customer's comments make the most impact because they are telling Tesco exactly what they think of the store and what changes are needed to be made to improve it further. The customers are very powerful as they can create these changes, by writing comments and posting them in the comment box which Tesco empties regularly to try and impress their customers more and more every day, these comments can be such things as 'the toilets are not clean enough' or that 'there is no staff to ask for help from'. They have a big influence on the store because if the store did not respond to their comments or improvements Tesco would lose customers. This would mean the Tesco lose money and gain less profit.
Tesco has responded to the customer's wishes in several ways to improve their store and put the customer's needs first.
There is a petrol station that can be accessed on the way in or out of the store. After you do you're shopping at Tesco there is often a discount on the end of a receipt getting money off your petrol depending on how much was spent in store. This encourages the customers to buy more in Tesco so that they can get more savings on the petrol they purchase.
There are signs around the shop to show customers where the ideal places where they should walk are, they all lead up to the shop eventually and are clearly marked so that the customers don't get confused, cause congestion or be in any danger of traffic moving around the car park. This could have been asked for by the local community.
There are several different types of parking spaces that clearly state where certain people can park, such as disabled, and parent and child. These have been placed near the store entrance and depending on the size of the car park a percentage of the spaces have to be for the disabled but Tesco also provide for parents and children. The spaces are wider for easy access of the prams and wheelchairs to get in and out of the vehicles. The customers want enough parking and they want it to be appropriate parking, near to the store and spaces wide enough for prams or wheelchairs. The disabled spaces are available to everyone, you don't have to display a disabled badge like all other supermarkets across the UK.
There are cash-points at the front of the store to enable people who prefer to pay by cash to get cash out of their bank account instead of not getting any shopping and going somewhere more convenient with cash machines.
Changes have been made at the very front of the store as soon as you walk in. These changes have been made in the interest of the customer. There are signs up to tell you the bus routes from Tesco to different places, a Metro sign to point you in the right direction and cycle lanes to keep Tesco customers who use the bicycles safe on the road. There is also a free phone for taxis. This encourages other transport to be used as it is environmentally friendly. There is advertising for many different things and community news. The toilets are clearly marked and there are many disabled trolleys and wheelchairs that can be accessed. At the front of the store is a customer information desk where products can be returned and information can be attained. The customer desk also promotes Tesco's services. There is information about the store at the desk; this is encouraging customers to learn more about the place in which they shop. All this provides a better service because it means that if a customer is not very happy with an item or it doesn't fit them they can bring the item back at a separate desk to the tills and get their money back hassle free.
There is a café near the back of the store which provides a trolley park for people who are in the middle of their shopping and wanting something to eat. There is a lift to provide easy access for prams, wheelchairs or any other kind of customer which cannot get up the escalators. The sign for the café can be easily seen from quite far away in the store so that customers don't have to hunt around for something to eat. It is a very large store; therefore Tesco provides a lot of tables and chairs, seats for children and spaces for wheelchair users.
A big help for customers who cannot get out of the house for many different reasons is to shop online. This is where they place their order online and then an employee collects their items from around the store and records the prices for each product to inform the customer of how much they need to pay. People that do this for their customers are known as 'personal shoppers'. It is then delivered to their home.
There are a lot of different offers around the store for different products. This is in the interest of the customer as it attracts more people to shop at Tesco as they are going to get value for money products and shop their in the future to take advantage of these offers. There are plasma screens placed all around the store to advertise for Tesco therefore if a customer is in store for one particular offer or item and they see another item they may like on one of the plasma screen they might walk out of Tesco purchasing that particular product as well as all of their other shopping. This is creating more of a profit for Tesco.
There are tasters often set up around the store to encourage people to buy new products. This is a good investment as in the long run more people are likely to buy the product than they would if there were no tasters set out.
There are refrigerators that are automated temperature controlled, they are easily accessible and their sliding doors will suit all customers.
There is a variety of trolleys to suit all customers needs and creates variety to make the whole shopping experience that little bit more enjoyable. It improves the service that ...
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There are tasters often set up around the store to encourage people to buy new products. This is a good investment as in the long run more people are likely to buy the product than they would if there were no tasters set out.
There are refrigerators that are automated temperature controlled, they are easily accessible and their sliding doors will suit all customers.
There is a variety of trolleys to suit all customers needs and creates variety to make the whole shopping experience that little bit more enjoyable. It improves the service that Tesco provides and this means that families can bring their children along to shop; therefore attracting more customers.
A sales information desk is placed at the back of the store. This provides customers with information about products that they may have queries about. This desk is particularly for the electrical side of the shop. Also near this desk is a place where trolleys can be attained for bulky items; putting the customers needs first again.
The checkouts at Tesco are to help the customers to be in and out of the store as fast as they can. There are now self service checkouts at the front of the store for people with ten items or less. This is so that people who want to scan their own items, pack their own bags, have a payment option and have a quicker exit can do so. For those who have ten items or less but do not want to scan their own items or have a CD protection cover that needs to be taken off they go to a till for ten items or less with a cashier to scan their items on. This is a convenient quick check for those customers with few items. A traditional checkout has a Tesco cashier on it and a conveyer belt. There is room for a trolley and the cashier asks if you need any help with your packing.
There is a saving's scheme board placed at the front of the shop near the exit, this is to show the customers what kind of saving they could make if they chose to have a scheme with Tesco. There are payphones next to the scheme board so that any calls of importance can be made.
For customer convenience there are other shops that have been established on the site to offer a variety of sales that a customer can purchase. All these shops provide a different type of sale that Tesco does not and it attracts more customers into Tesco as well as providing a variety of products. These shops have been placed within Tesco in the interest of the customer as it means that the customers can stay within one store instead of having to go elsewhere for particular products.
Employee
Employees are people paid to provide a service to Tesco and they need a variety of skills. Their skills and experience could be to work in the bakery. If a need to work as a cashier or manager they need to be qualified at their job and do their best at it. This is so that they provide a good service to the customers to encourage them to come back to Tesco to shop. If they do their best at their job they will get positive feedback and maybe even a pay-rise or a promotion.
The employees want to be treated fairly and equally, they want good working conditions and reasonable working hours. If they don't get this then they will complain about the standards and this may even lead to them quitting their job. If they quit their job they won't encourage any friends or relatives to work at the shop, therefore Tesco will get a bad name and may even lose employees through their conditions.
Their influence on Tesco is that they are the ones basically making the business successful because they are the people getting up every morning and coming to work for Tesco and putting out the goods on the shelves that the customers will buy and Tesco will receive profit from. They are the people keeping the store open to the public and providing a good service to the customers. They keep the customers coming back. Tesco needs different employees for the different types of work going on in the shop; different areas. These areas can be anything from working on the tills to being a personal shopper.
The management is important at Tesco as they are the people who react upon certain complaints that the customers may have made. The management can tell their employees what they could improve on in store and overall this could make Tesco a better place for their customers and employees to be.
Financiers
Financiers are helping to fund Tesco and lend the business money to help them expand. This expansion creates more interest in Tesco as it can expand into larger stores or even a brand new store. A lot of very good improvements to their current store from the money can also be made. If Tesco expands it will get more customers and the more customers it gets the more profit will be made. If Tesco is successful they will have no problems paying back the loan.
Financiers are a very important role on Tesco as if they think the business is not doing well they can demand the money back. If they demand the money back then Tesco will go downhill. This will make all the shareholders that Tesco have think it is a failing business and they will sell their shares as soon as they can in case Tesco becomes bankrupt. Financiers are needed for the business in expansion, putting the money towards anything else that might occur to need funding such as opening a new line of goods.
Suppliers
The suppliers want to get paid a good price for the goods they are selling to Tesco. They have an interest in Tesco because they want their products to do well in the shop rather than them not selling. If their products don't sell then Tesco may not want to buy them anymore resulting in the suppliers not getting any money.
Tesco is a big seller but if they offer a ridiculously low price for the goods the suppliers will not get as much profit. If Suppliers refuse the price that has been offered that means that Tesco will have to sacrifice more money to buy it, and depending on the quantity this could lead to a loss. The suppliers also want Tesco to do well as if they don't then Tesco will be lost as a customer as they will turn to better suppliers or cancel their orders because they are not doing well. The suppliers supplies Tesco with all kinds of goods.
Fair Trade encourages Tesco to sell their products so that people in third world countries can be better off. If Tesco sell Fair Trade's good they will not get as much profit but they will get good publicity and may even get more customers from it.
Tesco could lose the suppliers and have to take their sales elsewhere if they ask the suppliers for goods on short notice. The suppliers could be unable to supply these goods on time and Tesco would want to take their interests elsewhere, preferably to places which will provide what they need on time. Tesco also wants good value for money and a fair price for the goods they are buying.
Government
The government is better off when Tesco opens new stores across the country as this means that Tesco will employ a lot of people from that area, this decreases the amount of unemployed and the amount of unemployed disabled people. Every shop that employs over 1000 people has to employ a percentage of disabled people. The government wants Tesco to be successful so that they get more VAT but they also want Tesco to obey laws to keep everyone happy, i.e. customers and employees will feel safe and feel as though they are being treated fairly.
The government has a very large impact on Tesco because they will fine Tesco if they break the law and they decide how much VAT is paid. The government forces Tesco to provide disabled facilities and recycling bins and meet there targets. Tesco have responded to this by putting bins at the top of the car park which are used frequently.
Shareholders (owners)
A shareholder has invested money into Tesco and would like the shop to do well so that they gain profit (dividends). They want Tesco to succeed. Tesco needs to do well and succeed to give the shareholders a profit; if Tesco does not reach these standards than the shareholders could sell their shares. The price of the shares would decrease and the impression is that Tesco is a failing business.
Local Community
The local community is a big influence on Tesco as their house prices are affected by Tesco. Their house prices could go up or down depending on the sort of expansion they are producing. It can adversely affect the area. Tesco's neon sighs are very bright and the traffic that builds up outside the shop creates noise and pollution. Since Tesco has had a twenty-four hour opening the safety of the neighbourhood is more at risk with it staying open so late because more and more people are going into the store and causing trouble, as they may be intoxicated or youngsters may just be going out of their way to cause hassle. If trolleys are taken off the site and left lying around nearby houses it creates a lot of litter and makes the place look untidy.
If the local community is unhappy with Tesco they will protest. This creates a lot of bad publicity for the shop and Tesco does not want that so they try their best to keep the local community happy.
The large sign at the front of Tesco has been covered up/hidden by trees and bushes as a result of one of the complaints that may have been made by the local community.
The parking spaces in Tesco have to have a certain percentage of their spaces for the disabled and for parents to park. If Tesco did not provide these spaces then the local community would not be able to use the spaces and would not have as much room to take their prams/wheelchairs out of their vehicles. Tesco have provided the local community with parking spaces for the disabled and the parent and child parking. They have made sure that there are enough of these different spaces so that the overflow of the customers does not have to use normal spaces. Although Tesco have provided these spaces they are also encouraging other modes of transport.
Pressure Groups
The pressure groups want Tesco to provide fair trade products and healthier options as an ideal viewpoint. They also want Tesco to pay fair prices for the goods they are receiving, through fair trade, to ensure that people in less economically developed countries are getting paid well for the labour they are doing. Therefore Tesco are paying out more so that the people in less economically developed countries are being paid fairly so they are gaining less profit but they are providing fairness in variety.
Pressure groups also push Tesco to recycle and reuse different things, as a result of this pressure Tesco have placed recycling bins at the end of the car park and recycling carrier bags at the front of the store.
Conflicts
Shareholders and Local Community
The shareholders and the local community have had a disagreement about extending the opening hours.
The local community is not very happy with this as it will affect their homes if they live very close to the shop and their roads will increase in traffic as more and more people will be shopping in the extra hours. This, in turn, will disturb the local community and keep children/pets awake when it is their bed time. The importance of the local community in this disagreement is the fact that if the community is not very happy with Tesco they might complain/protest about the particular changes. This will bring bad publicity to Tesco which they do not want as they will lose customers and this will result in them losing money from lack of sales.
The shareholders want extended opening hours as they want more customers which will result in more profits. The shareholders are important to Tesco as if they are not happy because they are not getting extended opening hours and no profits they might share their share in the business. If they sell their share in the business then other people who have share will look into why they sold their share and may also sell their share. If a lot of the shareholders start to sell they shares then the shares will not be worth as much as they would have been worth if they had not been sold.
To resolve these problems between the two stakeholders there have been public relations to show the different things everyone could benefit from as a result of the extended opening hours. To stop the local community from thinking that the traffic, as a result of the extended opening hours, will not be bad Tesco has improved the exit/access to Tesco so that the traffic flows more freely and smoothly. There are also donations made to the local community to keep them happy with the hours that the store will be open for. These donations could be such things as a new sports centre open for the community and Tesco may advertise this to show how great it is and that the community should go. This can benefit the community by keeping them fit and giving them a hobby and also keeping them happy with the fact that the stores opening hours will be increasing.
Shareholders and Employees
The shareholders and the employees also have a disagreement about the extended opening hours Tesco wants to have.
The employees are upset about this decision because it means that they need to do more shift work and work unsociable hours. The employees are important to Tesco as if they are not happy with the way Tesco are going about opening the store for longer hours they may go on strike or refuse to work. If the employees strike then Tesco will not have anyone working for them, therefore losing out on profits and bringing bad publicity to the store, which, in turn, will stop people from wanting to shop at Tesco.
The shareholders want these longer opening hours because of the same reason as before, they want more customers as more customers means more profit which will give them more money on improving the store to, yet again, gain more money. If the shareholders are not happy because they have been refused longer opening hours because of the customers they might sell their shares.
To resolve the issues and conflict between the two stakeholders Tesco have come to the agreement that they will employ more part time workers. These can be people such as mothers with children and students. If the workers Tesco have taken on are happy with they way they are being treated and the hours they are given then they might encourage friends or family to become employees there or shop there.
Management and Local community
The conflict between the management and the local community could concern the building of new premises.
The management want these new stores to get more customers and more profits.
The local community see this as a bad thing as they see Tesco taking over the rest of the stores, this gives the customers and the local community less choice about where they will shop and will cause problems for profit in the smaller stores
This problem was resolved by having meetings with the Local community and discussing how the extra shops will benefit them. It will provide more jobs for the unemployed an d also to people in the community who only want to work part time. These discussions put the locals at ease and provide a lot of encouragement for them to agree with the proposals that Tesco is placing in front of them.
Management and Government
The conflict between these two stakeholders is the fact that the government does not want the management to break the law but in turn if the management breaks the law then the government will gain fine money. Taxes are also taken from the management by the government. The Government are not happy with the fact that Tesco wants to recycle as this takes money away from the government.
The management have restrictions. They receive fines if they do not act within the law. If the management break the law then they will have to pay a fine to the government. This has an affect on the profits of Tesco. The management have to work hard in order to not break the law as they do not want to get fined too much as if they do they will get very low amounts of profit. If Tesco's profits start to decrease then they could lose their shareholders if the shareholders think Tesco is failing as a business.
The Government does not hesitate to fine Tesco if they think that they are breaking the law. If the government fines the management then that means they have a source of income that can be benefiting towards the local community. A community centre could be built with the extra money and also better conditions at the local schools. The trading standards of the government must be met by the government unless yet another fine will be put in place.
This conflict between the management and the government can be resolved by the management working within the laws the government have put in place so that they will not get fined. The managers must know the laws of the government so that are not telling their employees something that is against the law.
Management and Employees
The management have conflict between them as they have different objectives and needs to each other.
The management want to keep pay to the employees low and the price of their products high but not too high. If the do this then their profits will be higher. If their profits are higher then they will be able to improve their stores and make the local community happy and the customers happy.
The employees are not very happy with the fact the Tesco are keeping their pay so low and wanting them to still work for nearly minimum wage. Trade Unions represent the workers and if the workers aren't happy with their pay then the Trade Union will not be happy with Tesco. Tesco does not want to make their employees unhappy otherwise they will either go on strike or look for a better place which gives them better pay. If Tesco's employees go elsewhere for better pay then they will have competition that is trying to steal their customers. If Tesco's employees go on strike then they will attract bad publicity to Tesco. Tesco does not want bad publicity as that will attract the attention of customers and the local community. If the attention is attracted by the customers then they will not want to shop at a store which cannot keep their employees happy. If the customers think that the management cannot keep the employees happy then what is the chance that they will be happy going into the store. The customers will go elsewhere to shop, creating competition for Tesco. If the local community's attention is drawn to the employees that are on strike members of them who may have been thinking of working there will not want to if they see that they will not get good pay and kept content in their job.
The conflict between these two stakeholders has been resolved by the fact that Tesco is working with the Trade Union to keep their employees happy. They are going to pay their employees more then minimum wage and either the same as or above what their competitors would pay them if they were to be working for them.
Management and Pressure groups
The conflict between these two stakeholders is that they both have different viewpoints.
The management want an efficient organisation which is run effectively with lower costs. This means that they do not want pressure put on them to arrange more things that would be good for the community because it will cost a lot of money which the management would rather keep for itself. The management want to please the pressure groups by giving them what they want but they do not do this is some cases as the things the pressure groups are asking for may be expensive or a very large job.
The pressure groups want the working hours on a Sunday at Tesco to be limited as they want more time spent on the family and for family time. Pressure groups put a lot of exaggeration on the fact that they want healthy eating to be encouraged in Tesco. This could make the people in their community a lot healthier and more able to do more things. If emphasis is put on the fact that healthy food is good for you then parents will be very happy is their children are drawn to the more healthier option if is (for example) very colourful. The parents also do not want sweets to be at the tills when they are at the end of their shop and paying for their shopping. They do not want this as it is unhealthy for their children to want sweets and also adds to the money they are spending. Pressure groups main issue is to encourage recycling at Tesco's store as it will cut down on the amount of rubbish clogging up our land and let us live in a less polluted community.
These issues were solved by Tesco providing many of the things that the Pressure Groups want, to show that they are a caring organisation and they want to look after their community by giving them all the different choices that they would like.
Management and Suppliers
These two stakeholders have an issue with the products deliveries, which is causing conflict.
The management want to deliver goods by customer demand to meet the customer's needs. If Tesco do not have enough of a particular product that the customer wants then they will lose profits that they could have had if they had bought more products, hence the need to purchase orders on customer demand. The management want this flexibility so that they don't purchase more orders of what they think that customers are interested in just to find that the customers are interested in something completely different.
The Suppliers want regular orders so that the orders are not being made and then more products are being added or taken away from what Tesco have ordered. If there have been large orders made by Tesco and they decide they do not want it at the last minute it means a lot of hassle for the Suppliers and they may even lose some of their profits as they may lose their products. If Tesco orders a certain amount of goods and then they have been posted out and Tesco decide they do not want them anymore and the Suppliers have posted them out and they will lose their products as Tesco may complain that they didn't order them.
This conflict was resolved by their contracts being drawn up so that other orders cannot be purchased after a certain amount of days that it has been ordered. Tesco usually has an advantage on this as it is mostly a larger firm then most of the Suppliers.
Management and Customers
The conflict between these two stakeholders is the fact that the customers want a range of products in front of them, whenever they choose.
The management don't want to be left with out of date products. If the management purchase them and then the customers decide they do not want that particular product anymore then the management will have wasted some of their money on goods that will have to be reduced to even have a chance of being sold.
The customers want good quality, value for money products which will be there, and there are enough of them, for all the customers that want them. They do not want the products to run out over time, they want them there when and where the customers need them. The customers need a range of products to choose from also so that they are not reduced to only choosing from one particular make.
This conflict has been resolved by just-in-time stock ordering. This means that the management can have the products on the shelves ready for the customers for when and where they need them. They also don't have to worry about ordering too many products and having to reduce the price of them to sell them. If the management has some idea of how many of a certain product that the customer wants then they will get the right amount and keep their profits up and their customers happy.
Financiers and Shareholders
The conflict between these two stakeholders is the fact that they both want provision of finance at a cost that both of them will be able to afford.
The shareholders want to be able to borrow money from the financers at a reasonable interest rate which they will be able to pay back. The shareholders want this money so that they can expand their current business and improve it for their customers, local community and pressure groups. They want a good background with the financiers as well so that they will get this good interest rate. If they do not have a good background with the financers then they might not get a good interest rate or they could even get refused for a loan because they don't pay their money back in time.
The financiers on the other hand want a high interest rate as well as prompt repayment and financial security. If financiers do not believe Tesco is capable of paying them back then they will not lend them money. The financiers are in a business themselves and seek to make more money by charging high interest rates.
This conflict was resolved by contract stating a reasonable interest rate and time allowed for repayment.