M1: Assess the relationship and communication with stakeholders of two contrasting
businesses.
In this report, I will be assessing the relationship and communication methods between two
contrasting businesses, Tesco a public limited company and save the children a British non-
profit organisation. Communication is a crucial strategy for engagement between
stakeholders and an organisation, so in this report I will discuss how communication supports
coordinate work and conclude how it supports stakeholder and success of the organisation.
Tesco:
Building relationship and providing effective channels of communication with stakeholders is
crucial for the success of both Tesco and save the children, as both internal and external
stakeholders are key parts of the business day-to-day operations. For example, Tesco stated
that their missions are to “Help everyone who shops with us enjoy a better quality of life…
easier way of living”. The aim to fulfil their mission through communicating with respect and
understanding of all their stakeholders- customers and local communities in particular.
Finally, internal and external stakeholders have different interests and requirements, which
can cause conflict, so Tesco will have to prioritise stakeholders depending on the decision-
making power related to the stakeholder, i.e. customer are a priority because without
customers a business has no purpose, second will be shareholders because without
investments the business cannot raise capital to produce products wanted by the customers.
Customers (External)
Tesco has a positive relationship with its customers, it gains information about customers
wants and needs through various forms of quantitative and qualitative data collection. Tesco
is tertiary business meaning it has to continuously improve its operations and methods of
customer services to outperform competitors compared to producing products to outdo.
Tesco communicates with a customer in a variety of ways to ensure it caters to all it’s
demographics, i.e. Older customers may not feel comfortable using the Tesco app to
communicate with the store compared to a young person who will prefer to use the app.
Methods of communication for customers:
- Verbal communication: Customer service desk
All Tesco stores have a customer service desk in all their super, metro and express stores to
ensure that all complaints and enquires are handled efficiently. Customer service desks
enable customers to enquiry without having to email or call then wait for a response, which is
helpful because customers can just travel to their local store with a receipt and the problem
will be dealt with promptly.
- Tesco Clubcard: App and card
Tesco club card is loyalty scheme developed by Tesco in 1995 and then club card prices in
2020. It acts as a communication channel between Tesco’s and its customers because the club
cards members data (shopping habits, amount spent etc.) share their data with Tesco, who
then analyse it to promote prices and goods tailored to their needs and wants. It creates a
, positive relation between the two because the customer will receive deals he/she isn’t aware
of it.
According to the Grocer article in 2021, Tesco has sent over 4.5 million personalised offers
via club card, which resulted in customers wanting more promotions leading to penetration
from 67% to 80% in large stores. Furthermore, according to the CEO Ken Murphy the club-
card programme has led to UK sales increasing to £19.9bn outperforming the market and
customer satisfaction improved due to programmes personalised offers through customer
shopping patterns.
Shareholders (Internal)
Shareholders are individuals or groups who have a financial interest in the business,
shareholder greatly influence the business financial because without their investments the
business cannot operate. Shareholders expect dividends in return for their investments, and
Tesco is PLC meaning it has over hundreds of shareholders. A positive relationship between
shareholders and Tesco is crucial because it relies on the capital invested, so Tesco to
maintain positive relations will have to regularly communicate with them about share prices
and changes to leaderships etc.
- Financial reports:
Tesco releases annual financial reports to all shareholders, financial reports are a snapshot of
a corporation’s financial positioning and provides insight into the business revenue, expenses
and probability. Financial reports are the simplest form of communication for Tesco because
the company is a plc meaning it has over thousands of shareholders from the general public,
who cannot and aren’t allowed to attend every board meeting.
The drawbacks of not effectively communicating to shareholders for Tesco can be a loss of
capital as majority of its initial investments in the first fiscal year is from public shareholders
purchasing shares, and Tesco failing to report accurate financial statements can lead to profits
and reputation as investors will deem the business untrustworthy.
- Annual General Meeting (AGM):
Tesco allows shareholders to vote on re-electing directors/managers, approving policies etc.
On Friday 17th June 2022 at 2:00pm Tesco had an AGM and all resolution were passed
democratically through a poll, the worth of the vote depended on the shareholder share value.
Annual general meetings are crucial form of communication between Tesco and shareholders
as majority of aren’t part of the internal team, meaning majority of shareholders don’t have
access to weekly marketing or financial presentations/discussions. Annual general meetings
provide transparency into Tesco’s operations, brings management to accountability and
enables shareholders to have a say in the business’s operation through democratic voting.
Employees (Internal)
Employees are possibly the second most influential stakeholders in Tesco because they are
able to affect how and when Tesco can achieve its aims and objectives, by answering
customer enquiries, acting friendly and proving information therefore abating the customer to
spend money and comeback. Furthermore, employees main interest aligns with Tesco
managers and owners because the increase in profit will directly compensates them, all Tesco
businesses.
In this report, I will be assessing the relationship and communication methods between two
contrasting businesses, Tesco a public limited company and save the children a British non-
profit organisation. Communication is a crucial strategy for engagement between
stakeholders and an organisation, so in this report I will discuss how communication supports
coordinate work and conclude how it supports stakeholder and success of the organisation.
Tesco:
Building relationship and providing effective channels of communication with stakeholders is
crucial for the success of both Tesco and save the children, as both internal and external
stakeholders are key parts of the business day-to-day operations. For example, Tesco stated
that their missions are to “Help everyone who shops with us enjoy a better quality of life…
easier way of living”. The aim to fulfil their mission through communicating with respect and
understanding of all their stakeholders- customers and local communities in particular.
Finally, internal and external stakeholders have different interests and requirements, which
can cause conflict, so Tesco will have to prioritise stakeholders depending on the decision-
making power related to the stakeholder, i.e. customer are a priority because without
customers a business has no purpose, second will be shareholders because without
investments the business cannot raise capital to produce products wanted by the customers.
Customers (External)
Tesco has a positive relationship with its customers, it gains information about customers
wants and needs through various forms of quantitative and qualitative data collection. Tesco
is tertiary business meaning it has to continuously improve its operations and methods of
customer services to outperform competitors compared to producing products to outdo.
Tesco communicates with a customer in a variety of ways to ensure it caters to all it’s
demographics, i.e. Older customers may not feel comfortable using the Tesco app to
communicate with the store compared to a young person who will prefer to use the app.
Methods of communication for customers:
- Verbal communication: Customer service desk
All Tesco stores have a customer service desk in all their super, metro and express stores to
ensure that all complaints and enquires are handled efficiently. Customer service desks
enable customers to enquiry without having to email or call then wait for a response, which is
helpful because customers can just travel to their local store with a receipt and the problem
will be dealt with promptly.
- Tesco Clubcard: App and card
Tesco club card is loyalty scheme developed by Tesco in 1995 and then club card prices in
2020. It acts as a communication channel between Tesco’s and its customers because the club
cards members data (shopping habits, amount spent etc.) share their data with Tesco, who
then analyse it to promote prices and goods tailored to their needs and wants. It creates a
, positive relation between the two because the customer will receive deals he/she isn’t aware
of it.
According to the Grocer article in 2021, Tesco has sent over 4.5 million personalised offers
via club card, which resulted in customers wanting more promotions leading to penetration
from 67% to 80% in large stores. Furthermore, according to the CEO Ken Murphy the club-
card programme has led to UK sales increasing to £19.9bn outperforming the market and
customer satisfaction improved due to programmes personalised offers through customer
shopping patterns.
Shareholders (Internal)
Shareholders are individuals or groups who have a financial interest in the business,
shareholder greatly influence the business financial because without their investments the
business cannot operate. Shareholders expect dividends in return for their investments, and
Tesco is PLC meaning it has over hundreds of shareholders. A positive relationship between
shareholders and Tesco is crucial because it relies on the capital invested, so Tesco to
maintain positive relations will have to regularly communicate with them about share prices
and changes to leaderships etc.
- Financial reports:
Tesco releases annual financial reports to all shareholders, financial reports are a snapshot of
a corporation’s financial positioning and provides insight into the business revenue, expenses
and probability. Financial reports are the simplest form of communication for Tesco because
the company is a plc meaning it has over thousands of shareholders from the general public,
who cannot and aren’t allowed to attend every board meeting.
The drawbacks of not effectively communicating to shareholders for Tesco can be a loss of
capital as majority of its initial investments in the first fiscal year is from public shareholders
purchasing shares, and Tesco failing to report accurate financial statements can lead to profits
and reputation as investors will deem the business untrustworthy.
- Annual General Meeting (AGM):
Tesco allows shareholders to vote on re-electing directors/managers, approving policies etc.
On Friday 17th June 2022 at 2:00pm Tesco had an AGM and all resolution were passed
democratically through a poll, the worth of the vote depended on the shareholder share value.
Annual general meetings are crucial form of communication between Tesco and shareholders
as majority of aren’t part of the internal team, meaning majority of shareholders don’t have
access to weekly marketing or financial presentations/discussions. Annual general meetings
provide transparency into Tesco’s operations, brings management to accountability and
enables shareholders to have a say in the business’s operation through democratic voting.
Employees (Internal)
Employees are possibly the second most influential stakeholders in Tesco because they are
able to affect how and when Tesco can achieve its aims and objectives, by answering
customer enquiries, acting friendly and proving information therefore abating the customer to
spend money and comeback. Furthermore, employees main interest aligns with Tesco
managers and owners because the increase in profit will directly compensates them, all Tesco
