Task 1. 2 What is a stake holder in a business? A stake holder in a business is somebody that can affect or be affected by the actions of the business. Businesses have several stake holders each. Anybody associated with a business can be a stakeholder of that business in some way. Who are the stake holders at Morrisons PLC? External Stakeholders- The customers- The customers of Morrisons PLC are a big stakeholder in the company. It is because of the customers that the business is able to function.
The customers are able to affect Morrisons because if they are not happy they will not shop at Morrisons but will go to one of their competitors instead. This will harm Morrison’s profit and therefore result in a decline of the business. Therefore it is important that Morrisons develop a good relationship with their customers. If a customer was not happy about something associated with Morrisons such as the price of a product or service, that customer can switch to Tesco, ASDA, Sainsbury’s or any other competitor of Morrisons.
A customer can also voice their complaint by speaking to a manager or writing to the business.
Some chains of Morrisons offer forms to be filled out giving the shop feedback on its products, services, employees and many other factors associated with the chain. A customer can feedback to the business through this method and complain about any issues they think require changing. The chain will then most probably contact the unhappy customer letting them know what has been done to resolve the issue.
Government- The government is a big stake holder at Morrisons and its competitors. The government sets policies and laws regarding supermarkets such as Morrisons and many of its competitors.
The government can decide on any taxes that the business needs to pay, what the business is allowed to sell, where the business is allowed to expand to and much more. Sometimes big shops such as ASDA, Tesco’s and Morrisons are not allowed to open a store in a place if there are little businesses nearby. This is because the already famous and successful chain would put the little shops in the area out of business. The government look kindly towards Morrisons opening large superstores in areas struggling with unemployment as this benefits the area and allows the government to make money from the axes the employees are paying. The government may also decide what Morrisons is allowed to sell and what it’s not. A new policy might come into place affecting things such as what packaging is allowed to be used on Tesco products, what kind of bags Tesco are allowed to supply their customers with and what time the shop opens. Taxes on tobacco and alcoholic products also are created by the government. Suppliers- The suppliers that Morrisons buy their products from are powerful stakeholders. The suppliers can affect the prices of Morrison’s products.
If the suppliers decide to raise the price of products then Morrisons will most likely have to raise the price as well. At the same time if the suppliers can make a better deal with Morrisons then Morrisons might decide to also reduce their prices or just make a better profit from each product. The suppliers might also decide exactly how much products they sell the Morrisons. They might decide to limit how much of a product they are going to sell to Morrisons. This might force Morrisons to raise the price of that product. If a supplier delivers a product late it can cause a huge loss of profit to the franchise.
The suppliers have to try keeping Morrisons happy because they do not want to risk losing the deal and all the money that come with it. Local Community- The local community can have a huge impact on the local stores. Usually the local community welcomes big chains such as Morrisons opening in the area. This is due to the benefits that the store brings to the area such as many jobs, cheap prices and a wider choice of products. The local community can either choose to accept Morrisons as a favourite or they might take a dislike to the franchise. This can determine how successful the store in the local area is.
The local community does not really affect Morrisons as a whole just the areas stores. If there is only Morrisons in the local community with a lack of main competitors such as ASDA, Tesco and Salisbury’s, then it is very likely that Morrisons will be successful because the little businesses in the area pose little threat. Competitors- The competitors of Morrisons are one of the most important stakeholders. Tesco, ASDA, Sainsbury’s and smaller businesses such as Aldi and Lidl are the top competitors of Morrisons. They decide many factors such as prices, location, products and services that force Morrisons to change.
If a competitor decides to lower a products price, then Morrisons will most likely have to lower the price too. If Morrisons does not do this then the competitor will sell more products and attract more customers, some that may be currently Morrison’s shoppers. Competitors can also have an effect on where Morrisons opens a shop. If for example there are 2 Tesco stores in an area, there is not much sense in opening a Morrisons store nearby. If a competitor of Morrisons starts selling a product that Morrisons currently does not, it is in Morrison’s interest to also supply that product. This is the same with a service.
So if for example ASDA start delivering to a specific area, then Morrisons will most probably do so too as this can potentially lose them many customers. If a competitor decides to launch a big advertising campaign such as Iceland’s famous “That’s why mums go to Iceland” campaign, then Morrisons will have to find a way to advertise too. Internal Stakeholders- Managers- Managers have a large amount of power on their chain. They decide how many staff to employ in a shop, which applicants get the job in their store, plans and marketing schemes for the individual store and employee rules.
If they decide for example they want to employ 80 staff members in the shop, this can increase sales and improve service in the store but also lose a lot of money through wages. But if the manager decides to employ only 60 then the service will not be as good but less money is spent on wages. A manger has to decide which applicants get the job. If the right decision is made and the employee is good then the shop will benefit from this but if a bad employee is hired then there will negative consequences.
The manager might also run a successful marketing scheme and generate much profit or they might run an unsuccessful one and waste a lot of money. Owners/Shareholders- Owners and Major shareholders get to make the most important decisions affecting the company. They have the most power within Morrisons. They choose who to employ in the higher levels of the hierarchy. This includes jobs such as Marketing Directors, Promotions Managers, Head of Operations and all the important job roles in the business. The owners also represent the large chain in the media and their actions and even their lifestyles can affect Morrisons as a whole.
If for example it is discovered by the media that an owner of Morrisons has done something which displeases the public, this can be enough to convince customers to shop elsewhere. The owners also can decide on salaries and wages that the business offers. High wages and salaries can bring in quality and hard working employees but cost the business money whereas low wages and low salaries can bring in less qualified employees which will save the business money but have a negative effect in the long run. Employees- The employees of Morrisons can have a huge impact on the success of the business.
They represent the business on a small scale. An employee can influence the business by working hard and offering good service to the customers. This will boost the amount of profit the business makes by building a good relation between customers and staff members. This creates loyal customers that come back to Morrisons every week to do their shopping. Also the more work that an employee does, the more that the business will advance. It is important that the business develops a good sense of team work among the employees. This will help the employees work together and therefore achieve more.
If the business fails to employ good employees, then the business will most probably suffer. Bad employees can potentially ruin a business. If for example an employee is rude to a customer then that customer will most likely never come back to Morrisons. If the employee does not put in much effort or hard work then the business will not advance. If one employee falls out with another employee or a manager, this can result in a lack of work or effort. It is important that a large business such as Morrisons use a rewarding system to keep their employees happy and hard working.
Who are the stakeholders at Thomas Deacons Academy? Internal Stakeholders Students- Students are the main priority of the school. They are very similar to customers in a business. They are the purpose of the school and without the students the school would have no purpose and would not exist. The main priority of the Thomas Deacon Academy and every other school is the education of the students. This makes the Students the biggest stakeholders in the Academy as each decision the school makes takes into account the students education and results.
If for example a department such as Geography wants to arrange a residential trip that lasts a week, the school will decide if the trip is allowed to happen depending on factors such as the effect the trip will have on results and if students will miss any important lessons. Other factors such as the safety of students also effect many decisions that are made in and by the Academy. If a student’s safety is at risk, the school will make decisions to prevent this. An example of this is for example the school might decide not to allow the P. E. Department to run the sport rugby as there is much contact involved.
Or a student might not be allowed to take part unless a gum shield is worn to prevent injury. The school must also make sure healthy meals are served in the refectory so that students receive proper nutrition. Thomas Deacons Academy offer many healthy choices to students. Water is also available for free from colleges near the administration desk. Board of Directors- the Board of Directors make many important decisions regarding the school. They are at the top of the schools hierarchy above even the CEO. The board have the power to sack the CEO. They have a responsibility for keeping the school at a good standard.
If for example the attendance of the school is low then they will address this issue and make sure something is done to change the problem. The same thing happens with behaviour issues and bad exam results. These types of issues are important and need to be addressed as soon as possible. The school can potentially be shut down if they are not resolved. This is why the Board of Directors put so much pressure on the CEO. Teachers- Teachers are the main staff members in a school. They deliver the lessons and therefore are responsible for the education that the students receive.
If students achieve bad exam results, the teacher will be put in trouble. Therefore it is important students are kept focused during lessons and are taught the right modules. Teacher’s performances are tracked by Student Achievement Leaders to make sure the students do not fall behind and are on track to achieve their target grades. A teacher can earn a promotion or a raise if they achieve a good set of results but can also get into trouble and jeopardise their job if they achieve bad results. A Head of Department is responsible for his/her teachers.
He will also get into trouble if his staff are not achieving good grades so it is important that they monitor their teachers and make sure issues are dealt with quickly. Teachers make many decisions regarding students. They get to make rules for students to follow within their classroom. They also set deadlines for students to follow and if students do not meet this they can take action against the student. Teachers can also try to get a student excluded if they think they are putting other students at risk. This will then be taken forward to the subject leader, and CEO and the CEO will make the final decision.
If a teacher is not happy about an issue such as wages or salary, or the way they are being treated at work, then they can consult the teachers union or NUT (National Union of Teachers). The teachers pay the union a slight fee and in return the union defends the teachers on any issues they might have. The union can arrange strikes and boycotts for the teachers which can cause many schools to shut down for a day or two. This encourages the government and school to keep teachers happy and meet their needs. This also gives teachers plenty of power and decisions.
Head teacher/ Principle- The head teacher at the Thomas Deacon Academy gets to make the most important decisions in the school. Dr. Alan McMurdo is the Principle at the Academy. He represents the school and parents and other external stake holders will go to him for any issues. When a member of staff has an issue or a dispute with another member of staff, they can go to Dr. McMurdo and he will do his best to resolve it. When a student misbehaves, they might be sent to him for discipline. Dr. McMurdo is responsible for the success of the Thomas Deacon Academy and if the school is failing, he might get the sack.
He is responsible for all the students and staff members. Because the Academy has so many students and so many levels of staff members, it might be harder to be able to go straight to Dr. McMurdo. It might be that a staff member has to go through several levels of staff before the Principle to be able to get their issue resolved. This is known as the chain of command. Every decision that Dr. McMurdo makes will influence the school. This makes him a very important stake holder. If he does not like something, he has the power to change it. External Stake holders
Parents- The parents of the students that attend the Thomas Deacon Academy are a stake holder. They need to make sure their children are receiving the best education possible and achieving the best exam results. If a parent feels their child is not doing well at the Thomas Deacon Academy, they might decide to move them to a “better” school. It is important that the Academy have a good level of communication with parents. The school should let the parents know what their children are doing in school, the grades they are attending, if there is anything that the parents can do to improve their ducation and hold parent’s evenings. The school might also send letters to parents or speak to them on the phone or even by text. If a parent is unhappy about something related to the Thomas Deacon Academy, they can go to the school and complain. If the situation is serious then they might go straight to Dr. McMurdo or even the board of directors. For example, if a student is getting bullied and the school are not addressing the issue, the parent might be furious and want the help of the board of directors. Parents can potentially have the school closed if the situation is bad enough.
OFSTED- OFSTED are an organization that monitor the performance of schools and rates them on it. OFSTED are a major stake holder in schools across the UK because OFSTED are allowed to put a school in “special measures” and even close it down if it’s really bad. OFSTED carry out regular checks at the Academy, and monitor stuff such as lessons, facilities and behaviour. They will then write up a report about the school for parents to see. Parents can view this report and then decide if they want to send their children to the Thomas Deacons Academy. Government- The government are big stake holders at the Thomas Deacons Academy.
They are the main source of funding for the school and therefore decide what budget the Academy has each year. The government also make rules for the Academy to follow. Since the business is an Academy rather than a normal school, they get more freedom on how to spend their budget and run the school but there are still many rules they need to follow. The government come up with a set of guidelines for the school. If the school do not meet these guidelines there will be consequences and these can be as severe as the school being shut down and staff members losing their jobs. The government work with OFSTED to track the progress of the Academy.
Universities- Universities are stake holders at the Thomas Deacon Academy as they decide which students they want each September. The Academy needs to meet the requirement of the universities so that students can get a place there. The Academy runs many enrichment activities for 6th Form students so that their UCAS application looks up to standard. If a student for example takes up an enrichment activity such as the Duke of Edinburgh Award, then they can list this on their UCAS application and they will be more likely to get a place than someone that does not have any enrichment activities.
Universities also set out grade targets. If a course in a university requires AAA-AAB and 280 UCAS points, then the students will need to meet these targets to be able to attend this course. Local community and neighbours of the school- The local community affects the Thomas Deacon Academy as they can have a good reputation or bad reputation. If the school have a good reputation in the local community then it is more likely that the school will receive more students and achieve more success. As a result of this, the school receives more funding.
If the Academy has a bad reputation than parents will be reluctant to send their children there and therefore the school will suffer. The school can improve the reputation with the local community by making them more involved through open days. The neighbours of the school are also important stake holders. It is important that the school makes sure that students are not damaging or vandalising the property of surrounding houses. The school can be in a lot of trouble if this happens and the neighbours have the power to potentially shut the school down if their property is being damaged.
The Academy is prepared to take quick severe action against any pupil found vandalizing property. The students are very likely to be excluded to if caught. An explanation of the different viewpoints of the stake holders in each business- At Morrisons, there are many stake holders. Some stake holders are after profit and some stake holders are after cheap prices. The customers at Morrisons want cheap prices and quality products from Morrisons as a business. They want to be able to do their weekly shop at a competitive rate. Morrisons need to fulfil these requirements to keep loyal customers.
If a customer does not believe they are receiving good prices and quality products, then they will simply shop somewhere else and Morrisons will lose out on money and profit. Morrisons are able to provide cheap products if they have are receiving good prices from their suppliers. The supplier’s point of view on Morrisons is to make as much profit as possible by selling products in bulk to the business. The supplier needs to give Morrisons good prices or risk losing the deal. If the suppliers are providing good prices for Morrisons, then Morrisons are able to lower their prices for customers and keep them happy.
Morrisons also depend on main competitors such as Tesco for prices. If Tesco lower prices than Morrisons must do the same or lose out on customers. If however Tesco raised prices, Morrisons can keep theirs the same and receive an influx of customers from Tesco. Tesco’s point of view on Morrisons is that they can provide better and more competitive prices. The big supermarket chains must continuously alter their prices to stay competitive so each big chain monitors the prices of other big chains. The shareholders at Morrisons are very interested in how much profit the business makes.
They have invested money in the business and therefore it is in their interest that Morrisons can give them some money back on their investment. When investing in a business, an investor hopes to be able to inject cash and improve or expand the business. If a shareholder owns enough of the business, they might try to buy out the business. This can be achieved by owning 51% of the shares. Shareholders might also influence a business by putting pressure on it to expand and open new chains so that more profit can be produced. It is also the interest of a manager of a chain to be producing maximum profit.
As a manager, they need to be running a successful chain. They will be monitored on how much profit they are making. If a manager is successful and they are producing a surplus amount of profit, then they might get a raise in pay and have a more secure job. If they do not they might get the sack so it is important that they use methods to achieve the best profit. The employees in a business want to earn the best wage possible. It is in their interest to do the best work they can. If a manager sees them working hard or really trying their best, they might promote them to a better job role with better pay.
If an employee is bringing in many sales they are more likely to get promoted. For example if an employee convinces a customer to by a more expensive TV rather than a cheaper one, the employer is likely to be impressed and happy with the employee. The local community of the Morrisons store are interested in cheap products that are of quality. If Morrisons can provide that then they will shop there. It is in the interest of the owners/shareholders to keep the local community there as then they will shop more at Morrisons. It is in the local community’s interest that Morrisons contribute to society.
For example, Morrisons hand out vouchers worth 1p each for every ? 10 spent in store at some point during each year. This money goes to schools for IT equipment and PE equipment. At the Thomas Deacon Academy, many stakeholders have different points of view about the success of the business as it affects them in different ways. The main stakeholders at the Academy are students. They are the customers in the business and everything that happens in the school is in their interest. Students attend the Academy for education. It is in their interest that the school is good and is achieving good grades.
The students are allowed their opinions and if they think there is something that can be changed about the Academy to improve it then it is likely that the Academy will listen to their opinions. It is in the parent’s interest that their children are achieving good grades. This is the reason they send them to the Academy rather than other schools so they wish to see the school succeed and their children to get good grades. If parents are not happy about something about the school, they are free to go and express their opinions and the school will most likely listen.
Teachers are another main stakeholder in the school. Parents want to know that their children are receiving the best education possible. If the school employs good teachers, than the parents will be pleased. The teacher’s main interest is how well their department is doing in the school. Teachers like to compete with other departments. They want to be the best department in the Academy. This is healthy competition as good grades are being achieved as a result. If teachers are achieving good grades, than they will most likely earn a promotion or a raise.
The head teacher Dr. McMurdo is interested in running a good school. He wants his school to be better than the others as he represents the school. He wants to achieve the best grades possible and keep parents and the Board of Directors happy. If he does not achieve good grades he might get the sack. The Board of Directors are at the top of the hierarchy at the Academy. They are above even the Principle of the school. They have the power to sack the head teacher. It is their responsibility to make sure Dr. McMurdo is doing his job properly.
They monitor grades and achievement at the school to track the progress. The Board of Directors need to make sure the school is achieving a good report from OFSTED. This is the Board of Directors main interest in the school. OFSTED carry out regular checks at the Academy to make sure things are being done properly and to a good standard. Their main interest is to see that the pupils are learning what they should be in a safe environment. If OFSTED are not happy they have the power to put the school in “special measures”. The other main stake holder is the government.
They come up with rules and regulations for the school to follow. They also provide the school with the budget. If the government decide to cut the budget, the school lose out on a lot of things. Priority Ranking of Stake Holders at Morrisons- 1= Most Important 1. Customers- The customers are the most important stakeholders at Morrisons as they are the ones that make the business profit. Morrisons need to make sure they keep the customers happy because if customers decide to shop somewhere else, the business will lose profit and suffer. . Competitors- The competitors of Morrisons have an effect on the prices and profit of the business. If a competitor decide to lower prices, then they are more likely to win over Morrison’s customers. The competitors are the main threat to Morrison’s loss of profit. 3. Employees- The employees represent Morrisons as a business. They interact with the customers and their hard work can bring the business success. The employees are the ones that run the business and do all the work that makes the profit for Morrisons. 4.
Suppliers- The suppliers can affect how much profit Morrisons make by lowering and raising prices. Suppliers need to make a good deal with Morrisons so that both parties can profit. 5. Owners/Shareholders- The owners and shareholders at Morrisons inject money into the business to allow growth and expansion. They also can decide who gets manager jobs and other important jobs in Morrisons. 6. Managers- Managers of local chains get to make or break the business on a small scale. The manager might run a successful store locally or it might fail and have to close down.
This can improve Morrisons slightly but will not make much of a difference and if the store fails, the whole business won’t suffer much. 7. Government- The government set policies and rules for Morrisons to follow. They decide what taxes Morrisons must pay and what products Morrisons are allowed to sell. They also decide where and where not Morrisons are allowed to open stores. 8. Local Community- The local community can decide to shop at Morrisons or decide to shop at one of the competitors. Morrisons might have a good reputation with the local community or a bad reputation.
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