I will be discussing and evaluating the influence different stakeholders of Tesco have on the business. There are two different types of stakeholders, internal and external. The stakeholders I am going to be talking about are customers, suppliers and owners.
The first stakeholder that I am going to evaluate is the owner of Tesco.
1) Owner- The owners of Tesco have the biggest influence over the business, as they make all the big decisions including choosing suppliers, opening of a new store, building and anything else to do with the company’s finances. As well as that, they decide the purpose/aims of the business, in this case the purpose of Tesco is to make profit, as it is a profitable organisation. The owner of Tesco will also make plans to achieve the aims/purposes and make Tesco a successful business. By having these influences, they can create a strong business and make profit by doing so. The owner of Tesco will have to make sure the company maintains a good relationship with its customers, as they are the main source of finance, which means that if there are no customers, the business will not be successful. The aim of Tesco’s owner is to earn as much as money as possible, this will be done by making sure that qualified staff is employed. Some expectations of Tesco’s owner would be:
• Expected to give everyone fair terms and conditions
• Make sure everyone is treated with respect
• Health and safety- The owner is expected to make sure that the Tesco store is a safe place to work at.
The second stakeholder I am going to evaluate are customers:
2) Customers- Customers are external stakeholders. This means that the customers contribute to the business by buying products, however they are not internally part of the business. Customers play a huge role in making Tesco a successful business, as they are the main source of finance. Businesses such as Tesco expect customer loyalty, which means that the customer regularly purchases products from Tesco and not from rival retailers. Customers would want to buy products and services of good quality and affordable prices, that is how repeat purchases are made. Customers can have a large influence over Tesco, as they can give their ideas for any appropriate changes to be made to the business. Many customers also give feedback, such as their views and comments, to let Tesco, know how they are doing. This is influential as it can help Tesco develop and change their business in order to meet customer needs. Customer feedback is necessary as it makes the business aware of any improvements that are needed, so that they can meet their aims and objectives. For example, Tesco have a survey for their customers online, it is known as the customer satisfaction survey. In this survey, customers are asked about their recent experience whilst shopping at Tesco, this is a good way of communicating with customers as the company gets to know their views and opinions on the business.
3) Suppliers- suppliers are external stakeholders of Tesco, this is because they do not work for the business, but they supply for Tesco. suppliers are important to Tesco, as they provide them with all the products they need to make profit with. Suppliers have a huge influence on Tesco, this is because if Tesco does not get supplies from the supplier, their aims and objectives of the business will not be achieved. That is why it is important for Tesco to build a strong relationship with its suppliers, so they can provide them with products and services of good quality to make their business more successful.