Ownership, stakeholders and organisation in Tescos and Oxfam.

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Criterion 1 (P1)        

  1. What does a plc mean?

A plc is legally abbreviated public limited company and it is a type of limited liability Company in the United Kingdom and the republic of Ireland which is permitted to offer its shares to the public.

  1. What are the characteristics of a plc?
  • It can sell shares to the general public
  • It can raise more capital because it’s aim is profit making
  • It has limited liability and a continuous existence
  • It is a chain of international supermarkets.

What are the advantages to Tesco of being a plc?

  • Tesco can find it easier to borrow from banks
  • Tesco can advertise its products on newspapers, magazines, television, radio, internet unlike private limited companies

What are the disadvantages to Tesco of being a plc?

  • Going public for tesco could sometimes be expensive
  • It could grow so large that it might become difficult to manage effectively
  • Cases of theft and shoplifting would be more rampant
  • Risk of takeover by rival companies.

What are the activities of Tesco?

Tesco has a well established and consistent strategy for growth, which has allowed them to strengthen their core UK business and drive expansion into new markets.

The rationale for the strategy is to broaden the scope of the business to enable it to deliver strong sustainable long-term growth by following the customer into large expanding markets at home such as financial services, non foods and telecoms – and new markets abroad, initially in central Europe and Asia, and more recently in the united states.

Tesco is both national and international which means it is situated in other parts of the world.

Criterion 1(P2)

  1. What does the term Stakeholder mean?

A Stakeholder is a party with an interest in an organization, e.g. employees, customers, suppliers or the local community. This is due to the effect that the organizations activities will have on them, although they are a “third party” in that they are outside of the organisation.

It can also be used to describe people who will be affected by a project, or who can influence it, but who are not directly involved in doing the work.

  1. Who are the stakeholders of Tesco and Oxfam?

The stakeholders of Tesco are quite a number and they are:

  • Customers – customer question time meetings are invaluable. Staffs hear customers’ views on everything from how they are serving them in their stores to their role in the community.
  • Staff – Staff gives their feedback through the viewpoint staff survey, staff question time sessions and their staff forum process. They want good pay.
  • Suppliers – Their core value is “treat people how we like to be treated”, and it’s something they apply firmly to their supplier relationships.
  • Investors – Their Investor relations team regularly meet analysts from the financial institutions which invest in them or represent their Shareholders.
  • Non-governmental organisations – they regularly meet with
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The Stakeholders of Oxfam are:

  • The main Stakeholders of Oxfam are the customers, people who donate to Oxfam the trustees, Partnership and trade unions.

They include:

  • Full time employees
  • Part time collectors
  • Supplier of goods
  • Buyers
  • Recipients
  • Funds provider
  • Local community
  1. What are the main interests of each of the Stakeholders of Tesco and Oxfam?
  • Shareholders and employees have a common interest in the success of the organization
  • High profits which not only lead to high dividends but also job security.
  • Suppliers have an interest in the growth and prosperity of the firm.
  • Wage rise.
  • Managers ...

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*** The end of this essay is all accurate but appears to have been lifted from official sources. I would like to have seen some interpretation of it rather than just copying it. The start of the essay is more original but there are factual inaccuracies and the writer has failed to understand the purpose of Oxfam.