Definition of Stakeholders Essay
Definition of Stakeholders
In this assignment I will talking about key stakeholders who influence the purposes of two businesses, the business I have chosen are Tesco and Range Rover. Also I will be talking about the interest owners, customers, suppliers, employees, trade unions and employer associations have in the businesses. Another point I will be talking about is why business have to consider local communities and pressure groups when operating their business.
Definition of Stakeholders
Stakeholders are anyone that is affected by the business or has an interest in it. Stakeholders are affected by certain decisions made by a business which could be good or bad for the stakeholders, they can influence a company and the decisions they make.
The interest and purpose that stakeholders have in Tesco
Customers want good quality products and services for affordable prices, they like to see improvements constantly being made to the business so they have good experiences when shopping at Tesco. Also Tesco must understand and meet customer needs otherwise they will fail to develop customer loyalty which intern mean they might be losing customers to rivals and that means they are losing out on money
Tesco would buy resources that they have needed of to produce goods and services from suppliers, so Tesco needs to have a effective relationships with their suppliers in order to get quality resources at reasonable prices which intern will help Tesco to sell products cheaper if they get it cheaper that will mean it will make customers more happy because they are getting good quality products and services for affordable prices, but this is a two way process as suppliers depend on the business they supply to earn money.
Owners would want the business to run smoothly and earn from it so the
interest they would have in the operations of the business would be that they will like to earn as much money as possible from the business so to do this they will try to employee the right staff for the job which intern will make their business as successful as possible due to the fact they have qualified employees for the job.
Why Employees, Trade Unions and Employer Associations have an interest in Tesco
Tesco will need to have employees to run their day to day business which means that Tesco needs to make an agreement with a employee to work a certain number of hours in return the employee will earn a certain salary that they agree to get for working the hours but the pay level of the salary will vary with the different skills and qualification a employees has.
Trade unions will have an interest in Tesco because they would want to insure that Tesco is not abusing employee’s right and they will also try to resolve conflict within Tesco if something happens. Another role trade unions have is to insure the working conditions alright for the employee to work in and if they are not the employees from Tesco will complain to the trade union and they will try to sort the conditions out and most probably try to make Tesco pay a fine.
Employer associations are a group which offer assistance and advice to employers with employees to help the function better also they try to promote legislation favourable to employers so this helps Tesco because it counter balances with trade unions which help employees and make it fair for both employers and employees because they get equal advice and resources
Why should Tesco consider local community and pressure groups
The reason Tesco needs to consider the local community is because they provide many of the staff and customers for the Tesco so they would want to have a good relationship with them due to the fact if they do they would have happy staff and happy customers. Also if Tesco do not consider the local community they will start to shop with rival company’s like asda and people might not want to work at Tesco due to the fact the will have a bad reputation within the community.
A pressure group is an organisation that try’s to tackle a certain matter of interest to the member of the group, so Tesco should consider pressure group even thou they do not have any direct political power but they do often influence the actions of the local government by a number of ways like creating bad publicity for Tesco , holding demonstrations and rally against Tesco which will mean that Tesco would get a negative imagine in front of the community which could really effect there business so intern this means that Tesco should try to keep pressure groups happy because it will help them run smoothly within the local community.
Why the government would be interested in Tesco
The reason the government would be interested in Tesco is because they can earn money from Tesco by collecting taxes, so if Tesco is doing really well and is earning a lot of money that will mean the government will make Tesco pay higher taxes to earn money from them selves.
Also the government would be interested because Tesco will help out the local communities because they would supply good quality products and services for cheap prices which inter will make the public happy because they are getting there moneys worth so this will mean that they happier will the government for letting Tesco operate within there communities .
The influence of stakeholders on Tesco
Stakeholders have a lot of influence on Tesco because without them Tesco would not be able to operate for example if a customer was not happy with Tesco for some reason they would not shop there and they will tell other customers to not shop there so this will mean that Tesco will lose out on
customers and potential sales and by that happening they will lose out on money so this means the influence of a customer is really high because without them the business can not operate.
Another stake holder will suppliers which have a big influence on Tesco because if for some reason the suppliers are upset with Tesco they might not give them as good quality products which intern will mean that if the customers do not feel they are getting good quality products they will shop shopping so by this happening Tesco will lose money so this means that suppliers have a huge influence on Tesco because if they do not keep the supplier happy they will not give good quality products which Tesco has to sell to earn money to keep their business running.
The interest and purpose that stakeholders have in Range Rover Customers
Range rovers customers would want great quality cars at reasonable prices, they would like to see the company improving their cars year by year so they know that Range Rover is business which trying to improve the driving experience of the customer each time to make it better for them. Also range rover will try to understand the need of there customer because if they don’t customers wont be loyal which intern means that the customer might go to an other car company to buy their car so this will mean that range rover will be losing money
Range rover are their own suppliers because the make their own cars and supply them to the show rooms but range rover buys the materials for their car from supplier which mean that they will need to have a effective relationship with the raw material suppliers in order to get good quality resources so this will mean that they need to keep their supplier happy otherwise they might not get good quality material to make their cars so intern this could mean that due to the back quality material of the car customer do not buy it.
The owners would want range rover to produces brilliant cars and earn as much money as they can buy selling those car, so to do this the owners of range
rover will try to employee try to employee people with the right skills and qualities which intern will make the business successful due to the fact you will have the best staff working for your company.
Why Employees, Trade Unions and Employer Associations have an interest in Range Rover
Employees have an interest in the business because they earn more from working at range rover so this means that they would want the company to do as well as they can which intern will help the employees earn bounces and pay raises if the business does well so this mean the employee have a interest in the business doing well because they can profit from it.
Trade union will have an interest in range rover because they want to make sure the employee there which are with their union are doing well and feel that they are working in a suitable working condition and also by having them work in good condition it will mean that the people who are with the trade union are satisfied by how the union is looking after their members.
Employer association will be interested in range rover because make sure that the employers are getting treated fairly and are receiving as much information as the employees get from the trade union also the employer associations try to help range rover by trying t promote legislation favourable to range rover.
Why should Tesco consider local community and pressure groups Local community
The reason range rover should consider there local community is because a lot of the staff member will be from the community also by having a good relationship with there community people will buy their cars instead of other companies because range rover will have a good relationship with the community which will make the community feel more comfortable buying cars from range rover.
Range rover should consider pressure groups because if they do not like what you are doing they will protest, have rallies and try to influence the government to stop range rover from doing the thing they do not like so this means range rover will get bad publicity which intern means that customer will think that the company is doing some thing bad and would not want to buy from there because people will think that you are supporting range rover, which will mean that range rover gets bad publicity and losses out on money so this means that range rover should consider pressure groups because they can influence a negative opinion about range rover.
Why the government would be interested in Range Rover
The reason the government would be interested in range rover is because the will pay money to the government in taxes which intern mean the government is earning money to help the country because of range rover operating in the country also range rover will he will community by employing which intern helps the government again because that will mean less people on benefits.
The influence of stakeholders on Range Rover
There are many stakeholder for range rover which influence the business one of those stakeholders will be the suppliers because the supplier decides if the business gets good quality raw materials or bad ones so this means the suppliers will have a direct influence on the business so intern it means that range rover will try to keep a good relationship with it suppliers due to the fact they provide the with the raw materials which have a massive influence on the company.
Another stakeholder will be the customer because they have a direct influence on how the company is going to preform because if range rover does not meet the needs of it customers it will mean that they would not by car from them which intern means that they will loss out on money due to the fact they did not meet the needs of the customer so this will have a direct influence on the business how it is managed and preforms.
In conclusion I have about key stakeholders who influence the purposes of two
businesses also I have explained the interest owners, customers, suppliers, employees, trade unions and employer associations have in the businesses. Another point I talked about is why business have to consider local communities and pressure groups when operating their business.
http://www.businessdictionary.com/definition/for-profit-organization.html BTEC Level 3, Book 1, Edexcel, by John Bevan/ Helen Coupland-smith/rob Dransfield/John Goymer/ Catherine Richards BTEC Level 3, National in business, Unit 1 business environment, by Ben Owusu Domfeh