M1. Assess the relationship and communication with stakeholders of two
contrasting businesses using independent research.
In this assignment, I am going to assess the relationship and communication between my
two contrasting businesses chosen and their stakeholders. The businesses that I chose
are Tesco PLC and Starbucks.
TESCO
Tesco Plc has various kinds of internal and external stakeholders in their business who do
various kinds of jobs suitable for which group there are in and influence the business. Also,
they have different relationships and methods of communication with each of their
stakeholder.
OWNERS
RELATIONSHIP
Tesco’s owners have a good relationship with their business because what they do will
influence the entire business because of any decisions they make, contracts with other
business, shareholders and suppliers, and their policy in the business with employees
and customers. If the owners of Tesco do something wrong this may negatively affect
the business and its success. They need to respect the policies and agreements that
they do with their shareholders or suppliers because they can get into debt making the
business lose money and in the worst case declare bankruptcy.
COMMUNICATION
Tesco uses verbal communication such as face-to-face and over-the-phone
conversation. The advantage of this is that it allows regional managers to
communicate important information easily with owners within the company. Another
form of verbal communication that can be done face to face is a board meeting. As
well to verbal, Tesco also uses written communication, such as letters and emails to
communicate important information or invitation to meetings that the business is
making.
EMPLOYEES
RELATIONSHIP
Tesco wants to have a good relationship with their employees because they’ll be the
faces of Tesco in Infront of the customers. Tesco often rewards their employees with
bonuses when there is a significant increase in their work. Tesco offers a promotion to
their employees that shows excellent work performance and can motivate them with
their work. Tesco usually includes their employees’ ideas and feedback on how to
improve their performances and sales by carrying out events or meetings to provide
space for the employees to participate in the decision making process in the company.
COMMUNICATION
Tesco uses verbal communication such as face-to-face. The advantage of this is that it
allows employees to communicate important information easily with each other within
the company. Tesco also use reports as a form of written information to communicate
between staff members within the company. The advantage of this’s that they record
, and show information about what happened during an entire week or month in a store.
A disadvantage of using reports is that writing involves gathering lots of data and
information, which can be time consuming. Another writing communication that Tesco
uses are e-mails where they can share basic information within employees. The
advantage of this’s that nowadays most people uses social media 24/7 so employees
will have access to their emails easily, but the disadvantage is that they can’t see the
messages or important announcements if they don’t have internet.
SUPPLIERS
RELATIONSHIP
Tesco must need to have a good relationship with their suppliers because they give to
Tesco the products that they need to sell to the public. Tesco want to give suppliers
some certainty, so they have the confidence to invest in their business to innovate with
them in manufacturing and quality. So, they’ve entered into a whole series of long-term
supply arrangements. These suppliers’ relationships are typically three to five years
but can be as much as seven. It’s a win-win for each of them.
COMMUNICATION
Tesco communicate with their suppliers through an online platform in which their
supplier scan carries out the orders. This makes for status updates that are easy to
edit and track. Also, they use verbal communication through phone calls to
communicate with their suppliers about the products they need the advantage of this is
that provides complete understanding of communication delivered but the
disadvantages is that it’s difficult for certain people to understand speech due to
various speech tones used in verbal communication. Tesco also use emails to
communicate with their suppliers. This method is helpful to Tesco because it creates
permanent record of evidence, but written communication has no scope for immediate
clarification if not understood properly so will be complicated for the supplier to
communicate with Tesco.
SHAREHOLDERS
RELATIONSHIP
Tesco may need to have a good and professional relationship with its stakeholders
because they are the ones who invest in the company and buy shares from them and
they can invest them or trade with them. Also, the relationship between Tesco and its
shareholders is for each to profit from the activities of the other.
COMMUNICATION
Tesco communicate verbally with their shareholders in the Annual General Meeting
(AGM). Also, they use emails and letters where they send a notice convening the
meeting. Also, they communicate online by setting up a Share view portfolio at
www.shareview.co.uk. Some of the benefits of this are that they can monitor their
shareholding, access shareholder information, elect to receive shareholder
communications electronically, vote on the resolutions at the Annual General Meeting,
and any other shareholder meetings, use real-time market news and data to help
contrasting businesses using independent research.
In this assignment, I am going to assess the relationship and communication between my
two contrasting businesses chosen and their stakeholders. The businesses that I chose
are Tesco PLC and Starbucks.
TESCO
Tesco Plc has various kinds of internal and external stakeholders in their business who do
various kinds of jobs suitable for which group there are in and influence the business. Also,
they have different relationships and methods of communication with each of their
stakeholder.
OWNERS
RELATIONSHIP
Tesco’s owners have a good relationship with their business because what they do will
influence the entire business because of any decisions they make, contracts with other
business, shareholders and suppliers, and their policy in the business with employees
and customers. If the owners of Tesco do something wrong this may negatively affect
the business and its success. They need to respect the policies and agreements that
they do with their shareholders or suppliers because they can get into debt making the
business lose money and in the worst case declare bankruptcy.
COMMUNICATION
Tesco uses verbal communication such as face-to-face and over-the-phone
conversation. The advantage of this is that it allows regional managers to
communicate important information easily with owners within the company. Another
form of verbal communication that can be done face to face is a board meeting. As
well to verbal, Tesco also uses written communication, such as letters and emails to
communicate important information or invitation to meetings that the business is
making.
EMPLOYEES
RELATIONSHIP
Tesco wants to have a good relationship with their employees because they’ll be the
faces of Tesco in Infront of the customers. Tesco often rewards their employees with
bonuses when there is a significant increase in their work. Tesco offers a promotion to
their employees that shows excellent work performance and can motivate them with
their work. Tesco usually includes their employees’ ideas and feedback on how to
improve their performances and sales by carrying out events or meetings to provide
space for the employees to participate in the decision making process in the company.
COMMUNICATION
Tesco uses verbal communication such as face-to-face. The advantage of this is that it
allows employees to communicate important information easily with each other within
the company. Tesco also use reports as a form of written information to communicate
between staff members within the company. The advantage of this’s that they record
, and show information about what happened during an entire week or month in a store.
A disadvantage of using reports is that writing involves gathering lots of data and
information, which can be time consuming. Another writing communication that Tesco
uses are e-mails where they can share basic information within employees. The
advantage of this’s that nowadays most people uses social media 24/7 so employees
will have access to their emails easily, but the disadvantage is that they can’t see the
messages or important announcements if they don’t have internet.
SUPPLIERS
RELATIONSHIP
Tesco must need to have a good relationship with their suppliers because they give to
Tesco the products that they need to sell to the public. Tesco want to give suppliers
some certainty, so they have the confidence to invest in their business to innovate with
them in manufacturing and quality. So, they’ve entered into a whole series of long-term
supply arrangements. These suppliers’ relationships are typically three to five years
but can be as much as seven. It’s a win-win for each of them.
COMMUNICATION
Tesco communicate with their suppliers through an online platform in which their
supplier scan carries out the orders. This makes for status updates that are easy to
edit and track. Also, they use verbal communication through phone calls to
communicate with their suppliers about the products they need the advantage of this is
that provides complete understanding of communication delivered but the
disadvantages is that it’s difficult for certain people to understand speech due to
various speech tones used in verbal communication. Tesco also use emails to
communicate with their suppliers. This method is helpful to Tesco because it creates
permanent record of evidence, but written communication has no scope for immediate
clarification if not understood properly so will be complicated for the supplier to
communicate with Tesco.
SHAREHOLDERS
RELATIONSHIP
Tesco may need to have a good and professional relationship with its stakeholders
because they are the ones who invest in the company and buy shares from them and
they can invest them or trade with them. Also, the relationship between Tesco and its
shareholders is for each to profit from the activities of the other.
COMMUNICATION
Tesco communicate verbally with their shareholders in the Annual General Meeting
(AGM). Also, they use emails and letters where they send a notice convening the
meeting. Also, they communicate online by setting up a Share view portfolio at
www.shareview.co.uk. Some of the benefits of this are that they can monitor their
shareholding, access shareholder information, elect to receive shareholder
communications electronically, vote on the resolutions at the Annual General Meeting,
and any other shareholder meetings, use real-time market news and data to help
