Introduction Tesco has many stakeholders which help keep their business function. I will also speak about ActionAid and their stakeholders. I am going to discuss who the stakeholders are, what each stakeholder wants and how they achieve their aims. What are stakeholders? A stakeholder is anyone who is interested in a business/organisation. These stakeholders can be internal or external. An internal stakeholder is someone inside the business for example, an employee or a manager. An external stakeholder is someone outside of the company who has an interest in the company. An example of an external stakeholder is a customer or sponsors. Customers are external stakeholders because they are not working for the company but still buy products from them. Also, sponsors are external stakeholders because they want their name to be advertised by the company. http://www.bbc.co.uk/staticarchive/cf3c04b0a8e2ca5b16c0cc2bd6085127099eee9a.gif Employees Employees are internal stakeholders who help the business function as they work in the store. They can work in many branches in a business which is why they are one of the most significant stakeholders of a business. Employees want a good working condition with a higher wage to support their own family. They also want job security. They demand what they want and if they don’t get it then they leave the job and work somewhere else. If the pay is low and non-ethical, they can boycott the company. Employees can also go on strike. As they interact with customers when they work, they help maximise profits for the company which will help the company grow; employees help a business achieve their goals faster. Customers Customers are external stakeholders as they are not working for the company. They buy products from a business which helps the business grow which is why customers are the most important stakeholders of a company because without them, the business cannot succeed and function properly. The customers are the people that buy products from the company. Customers want good products for a cheap price. They demand what they want by writing reviews which helps the company understand what customers are looking for and if there are any faults in their business. If the company do not listen to the customer’s needs then the customers will not buy products from the company but will buy from other companies. This will make the company have a lower profit and could also make the company go bankrupt. Suppliers Suppliers are external stakeholders as they do not work for any company. Suppliers are wholesalers who buy products and items in bundles from several manufacturers, they then resell the items to companies and business’ who need them. They usually give the buyers bundles and discounts to save money for the items they purchase. Suppliers want organisations to buy the products and items they need from that supplier so they can make more money. However, they give discounts to big companies so they come again and buy from them as it is cheap. Managers Managers are internal stakeholders who have a massive role in the way a company organises itself and the things they do. They are the leaders of a specific store or even leader of the company but may not own it. Managers are a key role in the function of a company and the amount of money the company makes as they control what goes on in the company and who they employ. They want a high profitable business by making customers buy their products and make their employers happy. Managers achieve their aims by making the customers happy and making employers happy so they can get higher wages and continue the success of the business. Owners Owners are internal stakeholders as they own the company. The owners are the people who are in total control of the company and decide what happens within the organisation so they can increase profits. They want as much profit as possible with happy customers. Customers who will come back and buy products from the company as they are happy with the treatment and assistance they receive from the employers. The owner also wants happy employers by maintaining good working conditions. The owner will achieve their aims by maintaining good working conditions and making the employers treat the customers as respectful and professionally as possible so they come back and buy from them again. Shareholders Shareholders are internal stakeholders as they own part of the company. A shareholder is an individual or institution that legally owns a share of stock in a company. Shareholders are important to companies as they invest money into the business and make crucial decisions on what the company should do. This can lead to the company making more profit as the shareholders invest into the company. Advantages of Having Shareholders: They recommend new directors so they can maximise profits Vote on directors Buy new shares Sell their shares Sponsors Sponsors are external stakeholders because they do not work for the company. The sponsors are organisations that want to be part of the company. They can also be organisations that pay a company to use their name in advertisements or in their store. They do this because they want to be recognised by other people which in return will make them more money as people will check out that organisation and what they do. Sponsors want to make as much money as possible by paying companies to use their name. They also want people to understand the work they do. Conflict of Stakeholders Aims and Objectives There can be conflict between shareholders which can affect an organisation. For example, customers want good products for cheap affordable prices whereas shareholders want increased prices. This can cause conflict within the company’s aims because it is hard to make both parties happy whilst maximising profits. Also, employees want increased wages when the company is doing well as they are contributing by helping and serving customers on the shop floor. Stakeholders of ActionAid The board of trustees are the main stakeholders and are the internal stakeholders of the company. They decide what happens within the organisation. The trustees want the charity to reach their aims and goals so they can get more sponsors and donors for their organisation. In addition, trustees want more employees who can create new ideas so they can also get more money for their organisation and expand their business. M1 – Assessing Relationship and Communication Between Stakeholders Stakeholders of Tesco PLC communicate with each other by talking to each other directly and through social media. Employees and Customers Employees communicate with customers on the shop floor. They provide the customers with the services they need so the company can make money. Customers usually ask the employees for assistance and it is their responsibility to help them in any professional way. It is important that the employees and customers communicate with each other because it will help the company grow and make more money. There are many advantages of good communication between the customers and employees for the company. Customers will come back because of the good previous experience. Another advantage would be that the customers will give a good review and recommend the company to their friends which will increase the profit the company makes as there would be more people buying products from them. However, communication between the employees and customers can also have a negative impact on the business. Bad communication can mislead customers by giving wrong information such as the price of a product or where an item is located. Also, bad customer service can lead to customers giving bad reviews and customers not coming back to buy from the company which will not maximise profits. Managers and Employees Managers and employees communicate together to make sure the company are on the right track and are selling products consistently. It is the manager’s job to identify if the employees are doing the right thing to ensure the company maximises its profits. The manager’s communicate with employees by telling them what section they should work in and what to do. They also have meetings to discuss the work they are doing. Manager’s communication with employees can have many advantages. For example, good communication can benefit the employee as they become more engaging with the customers and impacts the environment around them. Another advantage of communication between the manager and the employee is that work is more efficient. On the other hand, bad communication can lead to an employee to get sacked and no longer work for the company. If the manager sees that an employee is not working to a good enough standard, the manager can sack the employee. Another disadvantage of bad communication is that the employee may of misheard the manager and may do something that they shouldn’t be doing such as working in the wrong department. Suppliers and Manager Managers and suppliers communicate together so they know what products they need to buy and the quantity of the products. The manager of the company would know what is selling well in the store and what is not so they would know how many of a specific product to order and what they should not order. This will help the company increase in profits as items are less likely to be out of stock. Suppliers communicating with managers has a couple advantages. For instance, if there was good communication between them, the right products would be bought and the right amount of products. Good communication would clear up any confusion between the two stakeholders. Another advantage of communication between the suppliers and the manager would be that some suppliers would give you bundles or even cheaper prices if they have a good relationship which would mean the company can buy more products for a lower price. However, suppliers and managers communicating can have disadvantages also. If the wrong products were shipped to the store, this would minimise the amount of profit the company would get as they would not be able to sell the items they want. This may lead to the company buying from another supplier/manufacturer. Owners and Managers Owners communicate with managers so the manager knows what is expected of the company and what they need to do in certain areas. The owner is in charge of the business and has to tell the manager products they must sell and how much profit they expect to make. The advantages of the manager and owner communicating is that they can both agree on the products they should sell and how to expand their business. Also, good communication would lead to higher standards of work and higher profits as the managers would know what goals they need to achieve for the company so they would work harder. However, communication between the owner and the manager can have disadvantages. If the manager disagrees with what the owner says, this could lead to conflict between the two. Also, the owner can sack the managers if they do not impress or if they don’t achieve their aims. ActionAid The stakeholders of ActionAid communicate in a slightly different way. Trustees and Managers Trustees communicate with managers to discuss the direction and the current position of the charity. They work together to ensure they use the funds correctly and don’t waste any money so that the people receiving the aid are benefited. There are many advantages of trustees communicating with managers. For example, trustees will know what they need to invest their money in so the work is extremely effective and helps lives internationally. Another advantage of managers communicating with trustees is that there is less confused within the business which helps the company run smoother. However, communication between the trustees and managers can also have disadvantages. For example, if the money is not used correctly or efficiently then there could be conflict between the two stakeholders. Another disadvantage would be that wrong information could be exchanged causing problems within the organisation. For example, if ActionAid sent less water to a family than they should have, the communication between the trustees and managers were not as effective. Donors and Trustees Donors and trustees communicate together so they can work out how much money donors want to give to the charity and how the money will be used. They communicate together to ensure the money is used correctly and none of it is wasted but is used for beneficial reasons. There are advantages and disadvantages of communication between the trustees and donors. An advantage would be that they discuss how the funds would be used to support those in need which would have a positive influence on the charity. Another advantage would be that no money would be wasted and the business would run better as there is less confusion. A disadvantage however would be that if any money did get wasted or was not used correctly due to incorrect information exchanged, the donors may donate less money to the charity or no money at all. Another disadvantage would be that the donors may not donate as much money if they are unsure of how the money would be used. For example, if the trustees do not provide correct information or are not persuasive enough then the donors will not give as much money.