Stakeholders At Tesco
Stakeholders in Tesco
Stakeholders are the people revolved around the interest in business. There are different types of stakeholders in the business world who all play different parts to society. A stakeholder for Tesco may be someone that has the job of affecting their organisation either in a good way or a bad way. Below are listed main stakeholders in a business.
- Local Community
Workers: A worker at Tesco is someone who has a clear interest in the business they are working in. They tend to rely on work for their income, bonuses, discounts, bonuses and holiday pensions. This meaning they either like or do not have to like their job but they are still working because they need it to live by. Although they are helping Tesco by a significant amount they may take this as a chance of security for their futures and also a chance of meeting new people. Workers at Tesco maintain a big job at hands, as they have to show customers the respect and the idea of customers coming by again.
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Managers: You may feel that managers have a different type of job to workers as they do different things to workers but in actual fact they too work to live by on. The decisions of the manager has a great affection on Tesco, it can either result good or bad. Some decisions managers have to take in are:
- Hiring new Staff
- Firing Staff
- Plans for the future
- Ensure everything runs well
Anything a manager decides on affects the workers at Tesco and the organisation so it takes a lot of thinking as role in management for Tesco.
Owners: Owners in a business are very different people to workers and managers; you could say they dictate to what goes around in the business. They will set the salary boundaries and decide whether on increased pay to certain people around Tesco. The owners are considered to be really important people at Tesco as also they constantly look at new ways of making profit; a way of earning more profit at Tesco is to reduce the number of managers at Tesco’s, this enables there to be a conflict of interest between two groups of stakeholders. Owners consider it really important that they should be able to repeat business profits and respectable customers.
Customers: A customer is someone who is looking to spend their money on goods. Customers are always looking to buy products; they are looking for a wide range of products that contains quality and value for money. A customer is rated as a very important person as they provide the money, in this case for Tesco to be successful. Also an expanding amount of customers mean more profit for Tesco.
Suppliers: Suppliers stock the business with all its business supplies; if they are late then it causes conflict between business and suppliers. Therefore, it is vital that all the business supplies are on time. Suppliers are probably the third important part in a business, they provide the products and if they are not on time it poses a great threat to the financial state of a business. On the other hand, suppliers aren't that important in decision making because they're scared of losing their contract with Tesco. The main jobs of the suppliers are to sell fresh stock daily at market price.
Government: The government has a great interest in Tesco especially out of other leading UK supermarkets. Tesco has been able to employ a significant amount of people over the past few years, meaning more people are employed and paying taxes. This will count as a huge help for the government as they would have more money to spend on sections such as health and education. Also with more people working, the government also has to pay less income support to people unemployed, again saving money.
Local Community: Over the past few years Tesco have been able to deal well with the local communities. The local community may have an interest in the business development depending on the business itself. The job of a local community is to give a planning permission if a business decides to build a new store. Successful business will also bring general wealth to a local community, which later on could help reduce crime and contribute to local projects by donations and other support.
Here's what a teacher thought of this essay
**** This essay includes all the main stakeholders but has not always clearly stated their interests. More could be made of the potential conflicts between stakeholders. Apart from using the word Tesco it is not really about Tesco. The name of any business could be substituted for Tesco. This is not a sign of good application. Think about the specific business.
Here's what a star student thought of this essay
Quality of writing
The report states the term 'stakeholder', although I believe that this is slightly unclear. An 'stakeholder' is someone or an organisation which has an interest within the businesses financial statements. It's important that all technical terms are explained clearly within the report, to allow the exmainer to understand with ease.
Level of analysis
The section 'owner's' is quite small and too vague. The owners of the business are known as 'shareholder's and there have the largest influence within the business. The student does touch upon how shareholders want to generate increased profits, although the student could add to this. The student could add further detail and explain how shareholders often influence the buisness, by choosing the option which allows the buisness to generate profits on a short-term basis, rather than long term. The section 'Suppliers' is again too short and vague. The relationship between the supplier and the buisness is often 'give and take'. As the buisness will want a low price, although the supplier would want a large order. Thus, this may cause some disagreements at first, although there usually come to a fair agreement. It's important that suppliers can be sure that their products will be sold efficiently, and if this is broken then this causes a large issue. If there is a store without any products then the buisness dies.
Response to question
In summary, the report is OK. The report states a number of different stakeholders and the interest that there have within the businesses financial statements. However the student clearly doesn't understand which stakeholders are important. The main ones are shareholders, suppliers and employees, which are all lacking in detail within the report. The student understands that employees within the business have an interest within the financial statements of the business, as there receive their wages and there are keen to understand their position within the business in terms of if their job is secure in the near future. Although the report goes further and states 'mangers', although there are also employees within the buisness and this should be merged with the first section of employees, as these have the same interest within the buisness. The section 'Government' and 'Local Community' often have a small amount of interest and the student has covered these sections quite well. Although the student doesn't state which stakeholders are important and which ones aren't so interested within the buisness.