Tesco Internal And External Stakeholders Essay

Stakeholder – person, group or organization that has interest or concern in an organization (businessdictionary)

Firstly Stakeholder is an individual or a group who has an interest in the success of a business I delivering high results and maintaining the viability of the business’s products and services.There are internal and external

The government is also a stakeholder as it is interested in the success of Tesco Plc as all businesses have to pay taxes, so the more profit they business turns in the more taxes is has to pay, if the business fails then workers are make unemployed and as a result may go and ask for government unemployment benefits such as Jobseekers Allowance.

into a product ready to be sold and bought out to the market. In order

Tesco’s is a private company which is owned by directors and shareholders who fund the business and the sole purpose is to make money. Tesco’s main purpose is to sell and make profit on products they sell such as food and online service. Tesco’s will provide excellent customer service and make sure all customers come back which

Tesco are committed to having a constructive dialogue with stakeholders to ensure that they understand what is important to stake holder and allow their selves the opportunity to present their position. Engagement helps them to identify new risks and opportunities to ensure that their long-term strategy is sustainable. In some instances, they find that working with stakeholders in partnership can help deliver shared goals. They might not be able to satisfy all stakeholder concerns all the time but through engagement they can do their best to balance competing demands. Tesco knows that customers need to be able to trust their business

Suppliers are interested in supplying Tesco with goods because of the business they get from them and the profit that they receive. They influence Tesco because if the suppliers go out of business then Tesco will have to find new suppliers that may not offer the same high standards as the previous supplier.

Customers- Customers want the company to improve and give them better value for every product they buy. They want the company to produce high quality products for them. Customers are one of the main stakeholders of private sectors such as Sainsbury’s because without them Sainsbury’s wouldn’t achieve their aim.

There are two types of stakeholders- internal and external. Internal stakeholders mean the business/organisation that runs the activities, for example – managers, employers, supervisors etc. On the other hand, external stakeholder means when the business/organisation depends on external factors that can affect the businesses’ decisions: for example- customers, suppliers and the government.

Bargaining Power of Customers: Tesco frequently consults their suppliers and discuss pricing arrangements. Tesco also ensures that all aspects of their supply chain benefit from their relations with Tesco.

I am going to evaluate the influence that stakeholders exert on Tesco. I will be evaluating the following stakeholders: customers, employees, shareholders, suppliers, the government and owners.

A stakeholder is someone who someone who benefits or is burdened by a corporation, or someone who the corporation benefits or is burdened by. (Steiner). Stakeholders are represented by two main groups; primary and secondary

Tesco also have social factors that affect them, as the business have charity centre in helping the less privilege people and the more these people gets poor, the more they will have to stretch to help out which also spending money.

A stake holder, in general is defined as an individual or organization likely affected by the performance of an organization. In “The stakeholder theory of the corporation: Concepts, evidence, and implications” by Thomas Donaldson , he quotes Stanford research institution and calls stake holders “those groups without whose support the organization would cease to exist.”

If the company suffers then so do their pay cheques or they may possibly loose their jobs? All other employees of the company have the same influence and interest, just with less power over important decisions. Suzy’s customers have a big influence on her company, if they like the product and service, they will stay loyal and possibly buy more. Her suppliers have a big interest in the company as Suzy is buying from them, if the suppliers produce is good quality this influences the joy of chocolate in a good way. Where as if the produce is bad quality Suzy will loose business and probably change suppliers. Suzy’s customers are also stakeholders, if her customers don’t like her products then they will stop buying and sales will decrease. Another is the bank, they have an interest in the companies success because they want the loan payments on time every month, college is also a stakeholder, they have an interest in getting their students working placements to hopefully get them the experience they need and a possible career route as well as Suzy gaining educated employees.