Conor Cunningham
Unit 1 – Exploring Business
P2 – Explain how two contrasting businesses are influenced by stakeholders.
Tesco and their stakeholders
Customers Tesco's customers are external stakeholders. However, they are probably the
most important. They have a strong influence over the aims and objectives of the business.
If customers are not satisfied with the products and services Tesco has to offer, the business
will suffer as a consequence. The customers are really important to Tesco as they provide
the sales that enable the business to make a profit and grow. Tesco do recognise the
importance of their customers. Their mission statement is “to create value for customers to
earn their lifetime loyalty”.
In order for Tesco to remain competitive and familiar with customers, the must set
objectives for the business. Some of these objectives include:
• Survival
• Profit maximisation
• Growth
• Customer loyalty
• Sales maximisation
• Increasing revenue
• Cutting costs
• Having a competitive edge over its competitors
Employees
The employees of Tesco are internal stakeholders. The employees include everyone who
works in the firm, from customer advisors to managers and directors. The employees
greatest interest is their job security, job prospects and their rate of pay. They will also be
keen to have the best possible working conditions and given fair and equal holidays. Tesco
ensures the wellbeing of its staff in many ways. These include staff training, appraisal and
promotion opportunities which grows people as individuals. There are over 500,000
employees for Tesco worldwide. So, in order for these employees to enjoy their work and
feel safe in their work, Tesco carries out regular checks on their employees, staff activities
and looking at opportunities for growth.
Staff influence the aims and objectives of Tesco as they want the company to do well as
they are primarily concerned with their own job. They want their jobs to be safe and the
, Conor Cunningham
successfulness of Tesco will dictate that. Staff of Tesco want good working conditions and
fair holidays. Tesco work hard to ensure this happens so that their employees feel happy in
their work. Happy employees means higher job satisfaction. Staff - just like Tesco - want the
business to grow. For staff, this could lead to promotion and better job opportunities. Staff
like to see their customers happy so that the business they work in is seen as one of the
best. Tesco want to see their staff take pride in their work and in the company.
Investors
Investors influence the aims and objectives of Tesco to be successful. They want it to
succeed and grow. Investors in Tesco want to make a profit on their investment.
Shareholders who have bought shares want their shares to increase in value. By complying
with company objectives, they want their dividend to increase. Investors like to see Tesco
doing well. If Tesco is growing in success, so are the profits from their investments. Tesco
want to see more and more investors to help them grow and become the biggest and
largest grocery retailer in the world.
Suppliers
Suppliers to Tesco are external shareholders as they operate from outside the firm. In order
for Tesco to operate in an effective and efficient way, they must maintain excellent
relationships with their suppliers. Suppliers will aim to obtain regular business, payment on
time and fair treatment. Tesco expects so much from their suppliers and the suppliers
expect so much from Tesco. Tesco expect the good or service delivered in a excellent
condition and the suppliers expect to be paid promptly and accordingly. In 2013, a supplier
managed to mistakenly allow horsemeat to make its way to Tesco's shelves which was one
of the most detrimental effects to business in Tesco's history. There is a high level of trust
between Tesco and its Suppliers. A break in this trust can be destroying for both parties.
Tesco want a good relationship with its suppliers. The suppliers of Tesco want to influence
company aims to ensure they are secure for the future. Suppliers and Tesco want each
other to survive so they both stay in business. Suppliers want paid promptly and Tesco want
to make sure they pay their bills in time. Tesco and its suppliers have agreements to ensure
good and fair working conditions for the employees within both organisations. Both
businesses need to communicate well to ensure sales maximisation of both parties.
Government
The Government is an external stakeholder of Tesco. The government has many interests in
Tesco as a business. The government tries to ensure that Tesco employs as many people as
possible, pays all of its taxes and follows its criteria in terms of environmental issues. Tesco
and the government have worked together in the past to create schemes for people who
are unemployed. What happens is those who are unemployed work at Tesco for a week to
set them up for future employment. Tesco, along with the help of the government try their
Unit 1 – Exploring Business
P2 – Explain how two contrasting businesses are influenced by stakeholders.
Tesco and their stakeholders
Customers Tesco's customers are external stakeholders. However, they are probably the
most important. They have a strong influence over the aims and objectives of the business.
If customers are not satisfied with the products and services Tesco has to offer, the business
will suffer as a consequence. The customers are really important to Tesco as they provide
the sales that enable the business to make a profit and grow. Tesco do recognise the
importance of their customers. Their mission statement is “to create value for customers to
earn their lifetime loyalty”.
In order for Tesco to remain competitive and familiar with customers, the must set
objectives for the business. Some of these objectives include:
• Survival
• Profit maximisation
• Growth
• Customer loyalty
• Sales maximisation
• Increasing revenue
• Cutting costs
• Having a competitive edge over its competitors
Employees
The employees of Tesco are internal stakeholders. The employees include everyone who
works in the firm, from customer advisors to managers and directors. The employees
greatest interest is their job security, job prospects and their rate of pay. They will also be
keen to have the best possible working conditions and given fair and equal holidays. Tesco
ensures the wellbeing of its staff in many ways. These include staff training, appraisal and
promotion opportunities which grows people as individuals. There are over 500,000
employees for Tesco worldwide. So, in order for these employees to enjoy their work and
feel safe in their work, Tesco carries out regular checks on their employees, staff activities
and looking at opportunities for growth.
Staff influence the aims and objectives of Tesco as they want the company to do well as
they are primarily concerned with their own job. They want their jobs to be safe and the
, Conor Cunningham
successfulness of Tesco will dictate that. Staff of Tesco want good working conditions and
fair holidays. Tesco work hard to ensure this happens so that their employees feel happy in
their work. Happy employees means higher job satisfaction. Staff - just like Tesco - want the
business to grow. For staff, this could lead to promotion and better job opportunities. Staff
like to see their customers happy so that the business they work in is seen as one of the
best. Tesco want to see their staff take pride in their work and in the company.
Investors
Investors influence the aims and objectives of Tesco to be successful. They want it to
succeed and grow. Investors in Tesco want to make a profit on their investment.
Shareholders who have bought shares want their shares to increase in value. By complying
with company objectives, they want their dividend to increase. Investors like to see Tesco
doing well. If Tesco is growing in success, so are the profits from their investments. Tesco
want to see more and more investors to help them grow and become the biggest and
largest grocery retailer in the world.
Suppliers
Suppliers to Tesco are external shareholders as they operate from outside the firm. In order
for Tesco to operate in an effective and efficient way, they must maintain excellent
relationships with their suppliers. Suppliers will aim to obtain regular business, payment on
time and fair treatment. Tesco expects so much from their suppliers and the suppliers
expect so much from Tesco. Tesco expect the good or service delivered in a excellent
condition and the suppliers expect to be paid promptly and accordingly. In 2013, a supplier
managed to mistakenly allow horsemeat to make its way to Tesco's shelves which was one
of the most detrimental effects to business in Tesco's history. There is a high level of trust
between Tesco and its Suppliers. A break in this trust can be destroying for both parties.
Tesco want a good relationship with its suppliers. The suppliers of Tesco want to influence
company aims to ensure they are secure for the future. Suppliers and Tesco want each
other to survive so they both stay in business. Suppliers want paid promptly and Tesco want
to make sure they pay their bills in time. Tesco and its suppliers have agreements to ensure
good and fair working conditions for the employees within both organisations. Both
businesses need to communicate well to ensure sales maximisation of both parties.
Government
The Government is an external stakeholder of Tesco. The government has many interests in
Tesco as a business. The government tries to ensure that Tesco employs as many people as
possible, pays all of its taxes and follows its criteria in terms of environmental issues. Tesco
and the government have worked together in the past to create schemes for people who
are unemployed. What happens is those who are unemployed work at Tesco for a week to
set them up for future employment. Tesco, along with the help of the government try their
