Stakeholders + Developing Good Working Relationship 10 Mark Question

Authors Avatar by sam_atwalbtinternetcom (student)

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.
Join now!

Shareholders will want a share of the profits (dividend) rather than the profits being put back into the business or paid to employees via bonuses. If Tesco do not meet this need then shareholders might sell their shares in the company. This will reduce the price of Tesco’s shares, which might cause people to lose confidence in the business making it harder for Tesco to get investment.

The local community will want jobs from Tesco but not a lot of noise or litter around their area. If the local community complains, Tesco must listen because they are ...

This is a preview of the whole essay