Stakeholders + Developing Good Working Relationship 10 Mark Question

Stakeholders 10 Mark Question (June 2010)
Evaluate possible consequences to a business you have studied of not listening to its stakeholder groups.
Tesco has many different stakeholders and they all have different interests. There are a variety of consequences to Tesco of not listening to these stakeholders.
Employees want things like job security, fair pay and good working conditions. If Tesco do not meet these needs then employees may become de-motivated. This will affect their productivity and therefore negatively affect Tesco’s efficiency. Or employees might leave which will mean Tesco will have to replace them. This will cost Tesco money due to the hiring and training of new staff; reducing their overall profit.
