Shareholders for Tesco, also have a big influence over the business. They invest their money in the business, so without them Tesco would lose its value. This would have a dramatic effect as the business’ overall performance and services would be affected. They have influence over the election of directors.
Another type of stakeholder is suppliers. They supply businesses and organisations with the goods and products that they require. They want steady orders and quick and effective payment for the work and services that they deliver. They want to be treated well from businesses that they supply goods to. Suppliers can decide whether to raise prices for orders which obviously will affect a business’ profits.
Without suppliers, Tesco wouldn’t have any products or services to sell. Suppliers can influence Tesco as a business as they can affect the availability and quality of the product and the costs based on any price changes or credit terms etc. They can affect the quality of products positively or negatively. Their timing of deliveries also have a big influence over Tesco, as it is vital to how customers view Tesco as a company’s reliability. Suppliers can contribute massively to the development of products. They are experienced in that subject and they live the products, constantly working on new ways to improve them.
Pressure groups are people that represent views of charities and non-governmental organisations. They have very strong views and aim to influence the features of society and business. They have a tendency to protest, have demonstrations and petition against things when they don’t agree with them. They have the right to do all of these things, and to criticise the government.
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. They also talk to customers, and recommend certain products and services, which helps Tesco to bring in a lot more money. Without this, Tesco would lose a lot of business. They have a strong influence over the business and the way it is run, as if they are not happy then they can refuse to work.
Businesses can have a very dramatic impact on communities, which is what makes them a stakeholder. If a business is going to have a damaging effect in their community, they have a say in it. For example, noisy night-time deliveries or a smelly factory would be unpopular with local residents. They can also influence a business by petitioning against building or planning permissions for new developments. Their main interests are to do with the stores impact on local communities, local jobs and the impact on the environment.
Tesco believe that they are doing their best to build a sustainable world through their stores by providing support for local and national communities. They are trying to respond to the concerns they receive from communities by changing the ways they do business. They are trying to source more local products, introduce nutritional labelling and trying to become a better ‘neighbour’.
Directors want the business to do well. If they do well and meet their targets, then they can receive rewards such as bonuses. Their main aim is to focus the business in the right direction in order to lead them to success.
Directors at Tesco make the strategic and day to day decisions. Without the directors, Tesco as a company wouldn’t have anybody to make certain decisions, such as setting up new stores in other countries, and just general necessary decisions.
The government want businesses to be successful, as this creates new jobs. They also want them to do well so they can collect taxes from them and they want businesses to take responsibility for their own actions that they make. 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.
by
ionarifraf (student)
