Thursday, January 30, 2020
Stakeholders Who Influence the Purpose of Tesco Plc and Bonzers Farm Essay Example for Free
Stakeholders Who Influence the Purpose of Tesco Plc and Bonzers Farm Essay This report investigates the different stakeholders involved in influencing the purpose of BritainÃ¢â¬â¢s largest retailer Tesco Plc, this will then be compared to Bonzers Farm, which is a successful local business providing fresh produce. In this report we will get to distinguish key stakeholders in both businesses, and their relevance and the part which the play within that business. I will then conclude my report by discussing conflicts of interest and the interdependencies with those stakeholders. Stakeholders are people that have an interest in the success of business and play a role in the survival of that business. They tend to submit monthly amounts of money into the company or that it affects or is affected by the businesses action, they would be seen as more important to a company such as Bonzers Farm as they would need all the funding they could get, as it only supplies small local business and would be easily influenced by any small change, where as TescoÃ¢â¬â¢s Plc, which is a successful international retailer would of established strong relationships with its stakeholders and is in a better financial situation and therefore any financial change could be overcome easily . Tesco Plc and Bonzers Farm have similar stakeholders. The main ones are shareholders, customers, employees, government, local community, and suppliers. Shareholders are people who legally own shares of stock in Tesco Plc, they are needed as if Tesco is losing income and find themselves in financial trouble they can sell their shares to help build up the business, so the more shareholders they hold they better the chance of recovery. Shareholders want the business to succeed and their shares to increase which means a better return/dividend. Shares would be more secure with a company like Tesco Plc as itÃ¢â¬â¢s considered to be successful and gives out better dividends. Bonzers Farm would be seen as an unsecure investment as it only operates locally and has a higher chance of becoming bankrupt, which means shareholders lose their shares. Customers tend to be the most influential stakeholder as they determine the income Tesco makes. They generally want innovative products and quality goods at low costs, if Tesco is successful in providing this (research and ncome figures suggest they are), they will attract more customers through word-of-mouth and various forms of advertisement, Tesco are very aware of their targeted audience and therefore are successful in meeting customer demands which allows Tesco Plc to expand. Customers are as important if not more to Bonzers Farm as that may be the only form of income they receive, customer loyalty and increase is essential. They rely solemnly on word-of-mouth to improve customer numbers as they cannot afford advertising through various media. Employees want also Tesco Plc to succeed and influence it by working harder and more efficient. This is due to the fact that if Tesco succeed they are likely to get better wages, a higher chance of promotion and have a secure job. If Tesco Plc were to collapse this would threaten their jobs, freeze or maybe ever lower their wages. So itÃ¢â¬â¢s in the interest of both parties that Tesco provides a good service. Bonzers Farm will have only a small number of employees compared to the thousands Tesco have and their efficiency is crucial. This is because if they donÃ¢â¬â¢t work hard and at a high level then the business may fail and they are likely to lose their job. Stakeholders such as suppliers are also interested in Tesco succeeding as it allows them to have a long term and secure buyer, this allows them to sell more products which means more income and success for them. Their goods have to be of a high quality (depending on price) for customer demand to continue or increase and for customer loyalty. If quality drops that will have to be reflected by the price, if not then the Tesco may have to consider getting new suppliers, this means loss of income for the current supplier and job uncertainty. The government is also a stakeholder as it is interested in the success of Tesco Plc as all businesses have to pay taxes, so the more profit they business turns in the more taxes is has to pay, if the business fails then workers are make unemployed and as a result may go and ask for government unemployment benefits such as Jobseekers Allowance. Local community can also be considered as a stakeholder as it may be interested in the success of that business to create jobs for people living locally. A new Tesco store would be seen as a great opportunity for local jobs as it would require hundreds of staff with not much experience or qualifications. Bonzers Farm may be less welcomed as it only required a small number of staff and experience in the farm may be needed. If a business like Tesco fails then itÃ¢â¬â¢s likely that the whole community is affected due to job loss and will lose the ability to provide a needed service to the locals. If Bonzers Farm fail this will also affect the local community as it supplies local business, so it closes then those local business will need to find new suppliers at the current rate, if this canÃ¢â¬â¢t be achieved then they local business may also fail as a result. To conclude, from the information above that I have researched, all the stakeholders play a major role in the success of both business. However it is apparent that there is conflict of interest between stakeholder parties. For Tesco there could be a conflict of interest between the Owner and customer, both play a huge role in the success of Tesco Plc, as Tesco is mainly owned by shareholders they will be interested in the amount of profit they receive and therefore will be trying to get cheaper suppliers and selling at the highest price possible or cutting down employees, where as customers are interested in the service provided by Tescos, this could be through customer service or the quality of products compared to price, there could be conflict over opening hours as longer hours means a longer service for customers but more expenditure for the owners as more staff are required which means more expenditure. For Bonzers Farm there could also be a conflict of interest between owner and workers as the owners objective again is to turn in the highest profits available where as workers will be interested in higher wages, this could create a conflict as if Bonzers Farm decide to pay more wages they could loose much needed profit to pay out to the shareholders and running costs and as a result even fail to break even. This is due to the fact that employers look to pay the lowest costs for a best service available, the two tend to collide. Even though there is often conflicts between the stakeholders there are also interdependencies between them as they depend and need each other to make the business thrive. For example Tesco customers depend on the suppliers to supply them with the best quality of products available, and the suppliers depend on the shareholder to buy their products at the highest price. The local community depends on the success of Tesco to open up new job opportunities for the locals. This interdependence is also apparent for Bonzers Farm. Without all the stakeholder there would be gabs in the hierarchy and the business will find it difficult to function.