Describe the different stakeholders who influence the purpose of Tescos

Authors Avatar by ionarifraf (student)

Unit 1                Iona Rifai

P2 – Describe the different stakeholders who influence the purpose of two contrasting businesses

Stakeholders are anyone that is affected by a business or has an interest in it. Stakeholders are affected by certain decisions made by companies, whether it is positively or negatively. They can influence a company and the decisions that they make.

Customers want good quality products and services for affordable prices. They like to see improvements constantly being made so that they feel they are getting value for money. Quite often, people associate themselves with certain brands they buy. Organisations and businesses are dependent upon their customers. If they don’t develop customer loyalty, they could begin to lose their customers. Customers like to identify with the brands they buy.

Tesco’s customers have a huge influence over the business. They use their customer’s insight to make any appropriate and needed changes to their business. Customers can give their ideas, views and comments in order to let Tesco know how they’re doing as a company and what improvements they feel need to be made etc. Tesco don’t offer the right services, products and promotions, then their customers will end up shopping in alternative stores.

Shareholders are often the most important type of stakeholders. This is because, without them, businesses lose their value which will affect its overall business standing and performance. They are known as the main risk takers, as they do not want anybody managing to interfere with the business’ ability to make a profit. For them, if there is not a good profit being made, then it is completely pointless.

Join now!

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. ...

This is a preview of the whole essay