The first stakeholder I am going to evaluate is customers which are external stakeholders. Customers contribute to profit levels and turnover through buying products and services. People are stakeholders in a company for financial reasons, customers do not want to have to spend an excessive amount of money to purchase a product, so if the product is cheaper in one store, such as Tesco, than in another store then customers will buy the cheaper one which then attracts more customers.
An organisation survives through customer loyalty i.e. having regular customers. Tesco ensures that they get regular customers by giving them loyalty cards, promotions such as “buy one get one free”, discounts and other special offers. Tesco are getting regular customers which bring in more profit which then can be used to help expand the business. Tesco made customer loyalty marketing work when so many other retailers failed. They give vivid insights into how Clubcard benefits Tesco and more importantly, its customers.
Customers demand cheaper products so local and national stores such as Tesco will try to have the cheapest products for customers to buy which then encourages competition between the stores, whichever store has the cheapest price for a particular product then they would be attracting all the customers.
The second stakeholder I am going to evaluate is employees which are internal stakeholders. An employee is any person hired by an employer to do a specific job. Employees are important as any other stakeholder because they have first contact with customers so if the customers want to ask a question about the organisation or about a product then the employees can help with that and that employees could also recommend products to customers which will bring in more profit.
Employees must know about the customer service policy. If customers have a problem or an issue with a product or service then employees must know how to deal with it. Tesco have a customer service, the advantage to having a customer service for the customers is that their complaints will be responded to.
The type of employees Tesco would want to employ are the qualities the person has such as willingness, a positive attitude, communication skills with customers, the ability to relate to customers, an employee should be able to project a good store image, to be helpful, polite and knowledgeable. An employee should be a good team player and have team work skills. The type of employees Tesco would not want to employ is someone who is dishonest, has bad timekeeping and continues to have high absence rates.
The third stakeholder I am going to evaluate is shareholders which are external stakeholders. Shareholders are the owners of a company. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly. Shareholders can influence a business in many ways. They can exert their influence by voting for particular directors or they can exert their influence by approving dividend payments at the AGM (Annual General Meeting). Shareholders play an important role in raising funds for organisations. So these figures create a great opportunity for all those who are looking for a profitable option to invest money. The main powers of the Annual General Meeting of shareholders are to approve and receive dividend proposals.
An AGM (Annual General Meeting) is a meeting that official bodies and associations involving the public including companies with shareholders are often required by law to hold. An AGM is held every year to elect the Board of Directors and inform their members of previous and future activities. It is an opportunity for the shareholders and partners to receive copies of the company's...