Sainsbury's Stakeholders and their Job Roles

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Sainsbury’s Stakeholders and their Job Roles

The purpose of this task is to outline certain departments within the supermarket, such as stakeholders, job roles etc. To find relevant information needed I will be using resources such as information from class notes/worksheets, textbooks and the Internet.

Stakeholder is anyone who shows an interest in the business.


Sainsbury is a Plc, which means that ownership of the company is divided up between all the shareholders and the decisions are made by the board of directors with the shareholders best interests in mind. This is usually profit maximization, since each shareholder gets a proportion of the profits, relative to their share size, called dividends, at the end of each year.

The company, which generates its shareholders the most dividends, is likely to attract the most potential shareholders and keep most of its shareholders, which will generate capital for the company. Therefore, it is important to keep the shareholders satisfied since they generate capital for the company, this has to be done with regard for other stakeholders, for example if Sainsbury reduced prices shareholders would be displeased since, less profit would be made leading to lower dividend payment at the end of the year. But lowering prices improves the relationship with customers, which will lead to more customers, thus the spending on reducing costs would be recover and the company’s market share would be increased. This would lead to share prices raising therefore, the link between customers and shareholders, in that good relations with one, leads to good relations with the other.

There is evidence of this link on the Sainsbury website, which shows that when money was spend reducing prices, share prices fell, but as more customers were attracted, due to the lower prices, the share price increased due to a larger market share, which lead to increased profits. This is where Sainsbury have to decide, which stakeholder to satisfy or try to satisfy both, since they can retain profit for development or pay it out as dividends. The problem with retaining profit for development is that a lesser amount is paid to shareholders as dividends thus attracting less potential shareholders in the short term, but in the long term it will attract more shareholders, since the company will be better developed, though this will only happen if the company retains less profit for development and pays more as dividends. Sainsbury will analyse the market to attempt to choose the best time to make these changes.

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Employees are important stakeholders within a company, since the company cannot operate without them, thus companies will strive to keep their employees satisfied. This will be done by motivating the staff. Sainsbury will offer staff the lowest wages possible, since wages are a context factor, so as long as there is a competitive wage there will be no dissatisfaction and Sainsbury will be able to motivate their staff though other means, such as a prosperous career ladder, thus allowing staff to reach self actualisation, which will benefit Sainsbury since, motivated staff perform better, which will satisfy their ...

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***** A very well written piece that gives a good overview of the interests of stakeholders and the conflicts between them.