Different stakeholders who influence the purpose of two contrasting businesses
Different stakeholders who influence the purpose of two contrasting businesses.
Describe the different stakeholders who influence the purpose of two contrasting businesses
A stakeholder is an individual or group with an interest in the success of a business in delivering intended results and sustaining the capability of the company’s products and services. Well basically stakeholders are groups of people with an interest/concern about the progress of a business.
There are internal and external stakeholders in every business. An internal stakeholder is someone linked internally to the company that has personal interests which they might pursue. An example for this is that managers might seek organisational growth over profits, employees seek high wages and owners would seek for their shares to increase in value. External shareholders can be individuals or groups such as customers, suppliers or the public which is influenced by a business but are not a businesses internal part.
Stakeholders are affected by certain decisions made by companies. This is whether it is positively or negatively decisions. They can influence a company and decisions that they make.
There are several types of stakeholders as seen below;
Business: Tesco
Tesco is a PLC and it is a global business, it is a supermarket which gives products and service. Tesco is the third largest retailer in world measured by revenues and second largest measured by profits. This is a British supermarket which started in 1919. Tesco is owned by shareholders and anyone could buy shares into the business, the share price is £341.41p. Tesco is divided in to five different formats, differentiated by size and what sort of products sold. Tesco is divided into Tesco extra, Tesco metro, Tesco express, Tesco petrol station and Tesco superstore. Tesco has 6351 stores in total.
Customers: Customers are also known as buyer, client or purchaser of a good, service or product. Customers usually buy products or services from Tesco.
Customers want Tesco to produce high quality products. The customers are interested in buying products from Tesco because they have n interest in the companies’ products. The customers want value for money. They also want the quality prices to be competitive. If a customer is satisfied with Tesco product then they will recommend. Customers can influence Tesco by deciding to continue to purchase goods and services from Tesco. Customers can choose to take their custom elsewhere therefore this influences the profits that Tesco would make.
Employees: The employees of Tesco seek security of employment, promotion opportunities and good rates of reward. They are also proud to be working for a global business like Tesco.
Suppliers: The suppliers of Tesco want steady orders and prompt payment. They also want to feel valued by the company that are proud of. The suppliers will have an influence on the price because if they sell it as an expensive rate to Tesco then Tesco will also have to increase the value of their product.
Owners: These are the shareholders of the business they have an interest in the profit Tesco makes. Tesco has shareholders due to its global business. Owners are often thought to be the most important stakeholders because they have set up the business and give a lot of time into the company to make it successful. Owners like to see their share of profit increasing, and the value of their business rising. The shareholders will want to see how Tesco is doing and the reputation of Tesco. An shareholder can make decisions.. The positive influence is that they could invest more into Tesco whilst the negative influence they could have is that they could take their money out of Tesco’s business and take it somewhere else.
Local and National Communities: The actions of business can have a dramatic effect on communities. A community leader represents important interest groups.
Governments: The government wants businesses to become successful, to create jobs and to pay taxes. They want to see good businesses that take a full responsibility on looking after the welfare of society.
Influence of stakeholders on businesses: A business needs to take account of the interests of all its stakeholder groupings. These interests are linked together.
Organization: RSPCA
The Rspca stakeholders are internal stakeholders. It is a charity that takes care of unloved and unwanted pets. The people who founded Rspca are the people who started the charity up at the beginning. Then there are people who look after the charity and make the decisions about the business and these are called Board of Trustees.
Donators: The people who donate to Rspca are major stakeholders as Rspca would not be able to be a successful charity without the donations as they are the key to the money that is raised. Donators are major stakeholders as they’re also the largest investors to Rspca and influence it greatly. Without this support network the work would be limited and the animals would not be treated properly. The donators would not be concerned about how much they spend as they know that the money goes donated is going for a good cause.
Animals; Rspca help the animals who are suffering from illnesses and diseases and those who can’t get their basic needs. Rspca provides them food, water and shelter and treat them with any illnesses they have.
Customers; The customers are the people who give Rspca animals that they can not cope with anymore. The customers maybe fed up with their pet or the pet may have a disease which the owner can’t afford to treat them. This influences the customer as the pet will be in a better and safe place. The customer will not have to worry about the pet anymore as it will be in good care by Rspca. The customer could also ask Rspca for help on vet bills and rescues.
Employees: Employees are stakeholders within Rspca as the business provides them with a livelihood. If the organisation is a non profit organisation then this provides a sense of generosity for those who work for free. They seek security of employment, promotion, opportunities and good rates of reward. They may also want to care for the animals that are in danger.
Managers: The managers are the people who are in charge of Rspca. The job the manager does is to build relationships and deals with customer issues. Their job is to manage daily operations which are to meet the needs urgently to the animals that need care.
The Trade Union: The Trade Union are the people who try to make good working conditions for the staff who are employed by Rspca.
I have found out that Tesco and the Rspca have different stakeholders because of the way they are run and so the stakeholders always want what is best for either the customer or the company.
Different stakeholders who influence the purpose of two contrasting businesses