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?
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 taxes 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...