Unit 1 Business Environment
Assignment 2:
Introduction:
In this assignment I will discuss about key stakeholders who influence the purposes of two business, the business I have chosen are Tesco and Oxfam. Also, I will be talking about interest owners, customers, suppliers, employees, trade unions and employer associations have in the business. Another point I will be talking about is why business must consider local communities and pressure groups when operating their business.
In the second part will be discussing and explain the points of view of different stakeholder seeking to influence the aims and objectives of two contrasting organisations which are Tesco and Oxfam. This report also will show what relationship the business
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is trying to build with these stakeholder, as well as the influence the stakeholder has over said businesses. These influences can easily change the outlook for the businesses’ aims and objectives. Last part in this assignment I will rank Stakeholders of one organisation in order of influence, also I will give the reason and explain I think that stakeholder at the top of my list are most important or has biggest influence on the business. Tesco Oxfam Profitable Organisation: The above places/people are stakeholders for Tesco, but we need to keep in mind that every organisation has different stakeholders.
Stakeholders can have a large influence on business.
There are two types of stakeholders:
• Internal
• External
Internal Stakeholder:
Internal Stakeholder are entities with a business which include general group such as manager and employees. For example, the procurement function may have to market itself to senior management or management teams, or may have to communicate changes in purchasing policy and procedures to all staff.
Tesco:
Internal stakeholder for Tesco are people that work there in different departments, staff, directors and shareholder. All the worker work in Tesco are they Company’s Stakeholders.
Employees:
Their stake is that the company provides them with a livelihood. They want security of employments, good rates of reward also, promotional opportunities. Tesco will need to have employees to run their day to day business which means that Tesco needs to make an agreement with an employee to work a certain number of hour in return the employee will earn a certain salary that they agree to get for working the hours, but the pay level of the salary will vary with the different skills and qualification a employees
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has. Shareholder: Shareholder have a lot of influence on Tesco because without them Tesco would not be able to operate for example if a customer was not happy with Tesco for some reason they would not shop there, and they will tell other customer to not shop there so this will mean that Tesco will lose out on customers and potential sales and by that happening they will lose out on money so this means the influence of customer is high because without them the business can not operates.
Tesco is trying to gain as high profits as they can because company investors or shareholders might thing about investing more money in to the business because of its success and development. Tesco wants to make its investors satisfied because it may affect business future.
Directors:
The directors are an individual who oversees a certain subset of the company. A manager often has a staff of people who report to him or her. The directors set objectives, organises, motivates, communicates and develops people. Such as of a senior manager in Tesco is a director who ensures the business is running in place with no errors. This is done by having meetings with each other to discuss the status of the bank and check whether any reforms need to be made.
Owners:
A corporate owner is an Individual or entity who owns a business entity to profit from the successful operations of the company. Generally, has decision making abilities and first right to
profit. A shareholder is a part of owner in the business to which the shares relate. Having made a investment in the business, shareholders are concerned with assessing the profitability of their investment in terms of dividends, or profit and capital growth. When the shareholder looks at the annual report of Tesco in which they have invested, they will be mainly concerned with measure for instance earning per share, price ratio, intangible and tangible assets and dividends yield. Oxfam: Internal stakeholder for Oxfam are the staff who work with them and the people who raise funding for them. This Includes trustees, volunteers, funders and staff. Volunteers: This is an individual that works for an organisation and is employed by an employee, they can work either part time or full time. Volunteers on the other hand work for an organisation but not for profit making purposes, they do not earn salary or wages. Most people volunteer to get work experience like young people. A situation may arise whereby volunteers of Oxfam are not satisfied with the working conditions and may decide either not to turn up to work or start a protect, which could imperil the company in terms of achieving aims such as providing for communities who are being affected by poverty or reputation, to manage such situation, the business should listen to their employees as soon as they start complaining about the working conditions, so as not to cause any form of rebelling. Donor: An individual or group of people that are responsible for donations, they donate materials needed for Oxfam to operates and distribute to the people in need. Such materials may include clothes, food and money. They interested in the growth of Oxfam. They would want the business to go global so as the help and support those affected by famine from other parts of the world. They would want the community to speak good about them to be given a good reputation, also they would be expecting great efficiency from staffs and partners. Staff: The staff of Oxfam influence the charity greatly and are the main reason as to why the charity is successful. They provide the friendly customer service to those who decide to shop at the Oxfam stores. Staff usually do work for free, so this allows Oxfam to spend more on developing third world countries, again this has an impression influence.
Tesco is a Public limited company (PLC), which means it is owned by shareholders and it is in the private sector Also known as the for-profit sector and Activities outside the public sector organizations and businesses that provide services and products based on market demands for a cost with the purpose of producing a profit for owners and shareholders in the organisations. Tesco is the biggest employer in the UK with over 250,000 employees and over 1,800 stores.
Tesco is the largest retailer in UK. It is a public limited company which sells multinational grocery, health and beauty product, household items and toys etc. Since Jack Cohen founded Tesco in London’s East End at 1919 and now it has sprouted branches in 12 countries with over 7,800 stores include franchises. Tesco hire over 530,000 employees and they serve over tens of millions customers per week. Tesco
Tesco is a UK based Supermarket Company which was founded in 1919 by Jack Cohen, since then it has grown to become a multinational company which specialises in a lot more than just groceries, this has improved the overall profit of the company. The overall employees recorded at the end of 2015 was 476,000+, this shows that is a source of employment for nearly half a million people in the UK. The supermarkets are no longer just in the UK they also have shops based in Malaysia, India and Poland, this presents that they are increasing the size of business to a multinational company and is also a good source of jobs for people in poorer countries. In the world over 75million people travels
Tesco is a public limited business and therefore is in the tertiary sector as it provides a service to the public, this means that the business is owned by many shareholders. Tesco sell their shares on the stock exchange and are number one out of its competitors in terms of number of shareholders. Having a high amount of shareholders means that the business needs to make and retain profit levels high so that they trust and gain loyalty to the
Tesco must also follow their statutory duty which ensures that their employees have adequate welfare facilities. Employees also have specific duties they got to follow by law which includes them to take reasonable care for health and safety for them and the people around them, they must also co-operate with the employer or any other person to enable the employer or other person to perform or comply with any legal requirements.
The purpose of this report is to describe different stakeholders which influence on Apple and RSPCA. Furthermore, I will describe how each stakeholder influences on the aims & objectives of these businesses. To conclude, I will also evaluate the influences of different stakeholders in one organisation.
Online Stores Tesco wants go into other markets because they would be bringing in more customers, which are going to increase profit. They also have another aim which is to expand internationally because they already operate within the Europe. They have to set themselves new aims and objectives that are harder to achieve as it’s the expanding further.
In this essay I will be writing about the stakeholders of both The IPO and Waitrose. I will also be evaluating the impact of different types of stakeholders in one of these companies. Stakeholders can be any person or organisation that has an interest in the activities, goods and services of a business.
Due to the fact that Tesco is in the tertiary sector it has limited liability; this means that if they get sued by an unhappy customer the “higher people” on the executive’s board will deffinatley not be affected it also means that the owners do not have to pay any debts towards the business as they are not responsible (whereas if this was unlimited liability they will be 100% no matter what). It will only negatively affect the company not the owners.
Stakeholders are ‘… individuals or groups who are affected by the goals, operations or activities of the organisation (Mullins, 1999). Who are Barclay’s stakeholders and what influence do they have? Barclay’s key stakeholders are their employees, customers, shareholders and the communities in which they operate. Below is a table adapted from Sims (2003, p41) showing what stakeholders expect from an organisation. To fulfil the purpose of this assigned the stakeholders of Barclays will be incorporated within the table.
We all know Tesco as a food retailer, and we know that they are in constant competition with other retailers such as Sainsburys and Asda, yet we do not know much about what goes on beyond the shelves and the tills, the marketing plans and the day to day tactics that have to be devised to stay the number one food retailer in the United kingdom today.
Stakeholders and stockholders are a group of individuals that can affect the company and also are affected by the company. In order to be a successful company needs to maintain their investor’s confidence. Stockholders are also able to develop value for the customer because they invest on ideas that will produce success for the company. Stakeholders are all the individuals that have an interest in the company such as employees, customers, and the surrounding community.
This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman argued that “neo-classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and their shareholders and that only by doing so can business contribute to wealth for itself and society at large”. On the other hand, the theory of stakeholder suggests that the managers of an organisation do not only have the duty towards the firm’s shareholders; rather towards the individuals and constituencies who contribute to the company’s wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees, customers, local community and the suppliers (Freeman 1984 pp. 409–421).
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
Stakeholders are individuals, groups, and organisations with the power to influence the delivery of an organisation’s strategy and thus the organisation’s performance and/or a significant interest in an organisation’s strategy and thus the organisation’s performance (Wisniewski, 2001; Ackermann & Eden, 2011). In the context of the draft BSC to be developed, however, the analysis shall focus on relatively aggregated stakeholder groups. Firstly, the aim of this stakeholder analysis is not to pinpoint individual persons as stakeholders who may then be managed more easily than large organisations, but to identify rather broad stakeholder groups interested in Zara’s performance. Secondly, addressing