The organisation in which I have decided to produce a written report on is Tesco’s PLC as they are proving to be the most dominating organisation within the supermarket market despite Wal-Mart taking over Safeway’s. Tesco’s as an organisation is classed as the leading supermarket within Britain, it is also the national leader within the food sector. It is now a global organisation as Tesco stores are available in countries such as Ireland, Asia and Central Europe. The largest Tesco store is situated in Newcastle. In 1997 Tesco’s opened their first Tesco’s Extra store which has been running successfully for the past eight years.
I will be explaining the roles of both internal and external stakeholders in Tesco and showing how their objectives and expectations have changed over time. Stakeholder Stakeholders Tesco Plc has various kinds of stakeholders in their business who do various kinds of jobs suitable for which group there are in. Like any other Plc their stakeholders at least have a say in the business depending their role. E. g. shareholders have a bigger say than the employees who have very little say in the business Tescos Plc have the following external stakeholders in their businesses that play different roles between them are: –
Pressure Groups Local Community Government Financers (Banks/Creditors) Suppliers Customers Although they have external stakeholders in their business the must have internal stakeholders for them to run their business properly and be successfully at the same time. These internal stakeholders are similar to external because they have different roles to play between them and are essential for the business. These internal stakeholders who help the business are: – Employees Owners Managers Roles of external Stakeholders and their influences Pressure groups
Pressure Groups play a huge part in Tesco Plc as they try and help employees or any other people having problems. (E. g. if 400 employees are sacked, Pressure Groups try and do the right thing by trying to get all the jobs back for people who have lost them). Trade union Usdaw is to hold talks with management at Boots to discuss today’s announcement that 900 jobs are to be lost at its Nottingham head office. We are seeking urgent talks with the company, with a strong emphasis on protecting jobs. Although it was not unexpected, this remains a devastating announcement and represents a huge reduction in workers at Boots’ Nottingham head office.
We want to hold talks as soon as possible to negotiate on behalf of our members and save as many jobs as we can – and we would hope that there is scope for change to Boots’ plans even at this stage (From www. usdaw. org. uk) This is an example of a Pressure Group called Trade Union Usdaw who are taking immediate reaction on the employees who have lost their jobs at Boots Plc. This shows that they have power and are important for the business. Usdaw who in the past have succeeded in other business when their announced that they have reduced they employment, at this point Usdaw came in and they succeeded in making things right.
They have influenced loads of employees and helped them a lot over the years. Local Community Local Community are an important part of society as well to Tesco Plc. Local Community depend on Tesco Plc to provide Employment around their society Local community expects the following things from Tesco Plc are: – ? they want Tesco Plc to provide employment for people living around Batley and Dewsbury ? People living in Batley and Dewsbury wants Tesco Plc to prevent environmental pollution, noise or any other problems that might affect the local community Large business like Tesco Plc needs to operate within the community in Batley.
Tesco Plc being a large business will provide employment; minority of the money earned will be spent locally. Tesco Plc attracts other business – e. g. suppliers and this will create more jobs. It may also create problems like extra traffic. Sometimes there are laws to cover this, such as not operating noisy machinery between certain hours or not polluting the air and water but this does not apply to Tesco Plc, as they do none of those things. Some businesses are asked to regulates its own activities like car parks etc, but Tescos Plc have never been asked to do this as their car parks comes in the local community’s town car park.
Other major businesses contribute directly to the local community’s by sponsoring or other activities, however Tesco Plc don’t do this. The local community welcome Tesco Plc because they bring benefits by providing employment Government Government plays a very big part in Tescos Plc for instance if Tesco s Plc wants some information regarding their business they have to respond to the government and also Tesco Plc are legally obliged to pay taxes to the inland revenue which is done through the government. The government have a variety of reasons to be interested in Tesco Plc, and some of them are: –
? Inland revenue collects income tax from Tesco Plc. These government agencies are particularly interested in the financial affairs of Boots Plc ? another government agency, which has a duty to collect taxes, is Customs and Excise. It collects added tax (VAT) and also keeps an eye on the financial affairs of Tesco Plc ? Regional offices collect a wide range of information on business, on behalf of the government and are also run by the government Tesco Plc is expected by the government to provide the goods and services that the economy needs and also to provide employment.
Government expect from Tesco Plc goods to and services to be sufficient and of sufficient quality, to allow the country to trade with the rest of the world and the economy to grow. Government also expect from Tesco Plc to provide employment, which is fair, safe and fairly paid. Employees provide the government with income through taxation. Financers (Banks/Creditors) Financial position of Tesco Plc is very healthy so they don’t rely on banks for their debts or rely on them for giving them loans.
The bank therefore will not need any information on the business and their financial position and how much profit they have earned or much profit they have lost. Suppliers Tesco Plc must have good relation with their suppliers for preventing conflicts between them. Tescos Plc suppliers want regular’s orders from them as this helps them to be successful and increase their profit and also they want to make their financial position healthy and don’t want to be in debt. They want to supply a business which are reliable and which have a stable income in the business so that they can assure that they will be paid on time.
Customers Customers play an important part in the Tesco Plc, as they are Boots Plc main concerns. It also shows that they are willingly fulfilling customers need and expectations. These include: – Good-quality products delivered on time ? Reasonable prices for high technology after-sales service is vital Roles of internal Stakeholders and their influences Employees Employees are essential to Tesco Plc because without the employees they would have no business to run. Part-time or full-time employees are important stakeholders for Tesco Plc.
Because they are involved with Tesco Plc very closely, there are likely to have strong influence on how to run the business. Expectations of employees are likely to include the following: – ? Clean and safe working environment Job security Rewarding the quality of their work ? Opportunities for promotion and a career structure ? Competitive pay rates and discounts on company products Owners Owners of Tesco Plc have financial interests in the business. ? in the long term the owners of Tesco s Plc hope that the share price of the company will rise.
Owners of Tesco Plc want to receive large and increasing proportions of the company’s dividends. Owners of Tesco Plc have other interests like international investment because the trade fairly and try to avoid environmental damage. Owners of Tesco Plc are likely to be interested in the success of Tesco. Like any other single group their influence is ultimately is greater then them Owners of Tesco Plc have hopes and ambition for the business which has lead the to put their own money into it. This shows us that the owners of Tesco Plc are very motivated to see the business succeed. Managers
All the managers of Tesco Plc as well as the directors of Tesco Plc are the company’s stakeholders. Junior employees in Tesco Plc don’t have a bigger say than the mangers that also have a say in how the business is run. Managers expectations are the following: – Reputation is vital so the managers want to have a good reputation for being successful locally and nationally ? working in a business that is constantly growing ? also want a greater role in making decision Managers of Tescos Plc are responsible for the efficiency of running the business. Manager of Tesco Plc has the power to be innovative.
The managers can also be responsible for the failure or the success of Tesco s Plc than the owners. It is important that the owners are appointed with care and are properly rewarded for their management abilities. This is why senior managers can attract very high salaries, for their management skills Public limited Companies Public limited companies are able to offer their shares to the general public, often through the stock exchange. It is the share prices of these companies that are displayed in the daily press. Most of the large companies like Tescos and Iceland are both public limited companies.
Most Companies today start up as private limited companies and then go on to something bigger and end up being a public limited company. Manchester took this route and eventually became a PLC. A minimum of 50, 000 in share capital is required before a company can go public, through most they can have considerably more than this. Tesco is a (plc). A plc as I said above has a share capital of 50,000, which can be issued for sale to the public but must have a plc at its name. A plc is owned by shareholders, run by directors, set up by a body, which is separate from its owners (the shareholders).