Unit 1 – Task 1
Northampton life magazine
In this assignment I will inform you about the influence carried out by different types of stakeholders for two contrasting organisations. Firstly I will start by describing the type of the two businesses, the scale of the business, and then the type of ownership. Following on I will describe the stakeholders and their influence and how they wish to present their aims and objectives of the business. Furthermore I intend to include an in depth explanation of stakeholders ideas. Lastly I would like to evaluate the influence exerted by the different types of stakeholders for the chosen business.
Northampton college is a local public sector college, which is a part of the tertiary sector as it is providing education via college.The college is by the government department education source and is a non executive committee. The purpose of this college is to give an opportunity for a higher quality education to those who are aged 16 and above to full extent.
Tesco is a global private sector business and is a public limited company which means that it is owned by thousands of people and not just one. The main aim for Tesco is to retain loyal people and to serve customers a little better everyday. Tesco is a retailer thus it is a tertiary sector. They have an advantage of a limited liability therefore they are not exposed to much financial risks as of unlimited. They operate almost 7,000 stores around the world with over 50,000 employees.
Liability – limited/unlimited:
Liability is a company’s legal financial debts that arise during the course of business operations.
limited liability is where owners are personally liable/responsible for debts for example private limited and public limited companies.
Unlimited liability is if the business fails or is lacking they would have to pay for everything themselves even if this means selling belongings or as such. Examples of these are sole traders and partnerships.
8 key stakeholders: Tesco ; Northampton college
Customer – They are those who purchase goods or services for a business and are often driven by price or value.
Tesco – Their view is that they want cheaper products at their best deals from tesco. The customers aims are to lower the prices of the products to sell at a reasonable price to make is affordable. There has been news in the guardian newspaper that Tesco have been struggling to keep up with Aldi and Lidl’s price matches. Consequently they have come out with a new discounter named jack to overthrow Aldi and Lidl. This now means that due to the new brand they are able to buy things at a cheaper price for the customers which shape their aims and objectives. The pros for this new idea is that they are able to buy products at a cheaper price and more affordable price, and maybe gain some of their customers back or attract external customers. However it is believed that maybe it is too late and they won’t be able to overcome the standards which Aldi or Lidl have already provided.
Employees – They seek job security as well as promotional opportunities and a good pay.
Tesco – They want a suitable working environment with a good pay to support them in their personal lives. They believe that Tesco will provide them with security of employment, and be credited when deserved. On Tesco’s official website, on their news release it has shown that they had a pay rise by 10.5% for their colleagues which was quite a significant rise. This evaluates that Tesco have been paying attention to their employees needs, and have gradually been increasing the pay rates. Initially starting from £7.62 to hopefully making it to £8.42 by november 2018. This decision should satisfy their employees and meet their target and aims as a stakeholder would want.
Suppliers – They often strive to gain large and steady contracts with other businesses so they can work closely in a respectful relationship.
Tesco – They need someone to provide goods on a daily basis so they expect Tesco to give quick payments, and gain good respect within the industry. On the bbc news it had shown that in 2016 “Tesco knowingly delayed payments to suppliers”, which is an utter disappointment however they realised that it was a grave mistake and are trying to now reform themselves. The chief executive of Tesco had said “Over the last year we have worked hard to make Tesco a very different company from the one described in the GCA report”. Accordingly they are now trying to improve their damage. Although this was fraud we need to acknowledge that it was a major learning point for Tesco and they are recovering from this.
Owners – They are often seen as key stakeholders as they have invested the most time and money into the business which makes sense to why most would want large profits.
Tesco – The owners of Tesco have great expectations and standards and look forward to excel this onto their staff. A news report a while ago have shown that “Tesco’s Bosses told to be nicer to staff”, they believe that if they praise their workers and use manners or general etiquettes such as saying please and thank you, their workers will be encouraged to provide better customer services. This presents and completes their objectives towards their staff and benefit the company as whole.
Trade unions – They represent the interests of the employees, they aim to make their employees have a high satisfactory pay rate with upto standard working conditions.
Tesco – They want a secure working environment for their employees and to produce a higher wage. There have been some recent dispute about tesco not paying their female staff equally to their male staff thus a female staff stood up and took stern legal action against this. Now Tesco may have to pay around £20,000 to each individual employee for the last 6 years. This had a negative impact on the company which may potentially leave them in a lot of debts. They have failed to meet the trade union criteria here.
Employers association – Represent employees and make sure everyone is treated fairly without any dispute amongst themselves.
Government – They want businesses to provide jobs and tax revenue to help the economy grow at a steady rate with blooming opportunities for everyone capable.
Tesco – The government want to reduce having to pay for unemployment hence they support the idea of more people working there, also they want the tax collect from tesco
Local and national communities – They can have a direct impact on local and national communities. People in the local community often want jobs which are eco friendly as well as minimum pollution and damage to the area.
Tesco – The local community expect jobs from tesco and free resources to schools etc. On the Tesco official website they claim to say that they donate meals to the local charity and provide jobs for the residents living nearby. To take action they decided to make ‘Bags of help’, which means that they are more friendly to the environment and everyone is much greener. This matches the aims of the local community as they are well benefited through this new method.