Stakeholder in a Business

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Stakeholders in a business
Terms of reference
I have been asked to compile a report on the different stakeholders of a business. Stakeholders are a group of people who have an interest in the business. I have been asked to research, investigate and explain the stakeholders that influence the running of Tesco and Harrods. Procedure

Firstly described the following stakeholders and stated the interest they had for the business: * Customers
* Employees
* Suppliers
* Owners
* Pressure groups
* Trade unions
* Employer associations
* Local and national communities
* Governments
I then described how they could impact the running of the business using information from company reports. Lastly I described the conflict that happens between different stakeholders and how this can affect the business. (A) Customers

Customers are an important stakeholder to Tesco because they are the main source of income. They buy products and act as pressure groups because they put pressure on Tesco’s to meet their needs. Customers influence Tesco because Tesco listens to their concerns and acts upon it. If a customer’s concern was that the product they want to buy is never in stock Tesco’s aim would then be to make sure they always had products in stock and on the shelves. Customer comments make the most impact because they are telling Tesco’s exactly what it is doing wrong and what needs to be done to improve it so Tesco is encouraged to improve their store for the sake of their customers. They have a big influence on the store because if Tesco’s did not listen to their concerns it would lose customers and sales which could go to other competitors. Customers are split into socio economic groups based on the occupation of the head of the household. It is used to see how people in different socio economic groups react to the same stimuli. The first 3 socio economic groups A, B and C1 will shop at Harrods because they have better more professional jobs which in return they will have more money so they like the finer things in life so therefore shop at Harrods. The last 3 socio economic groups C2, D and E will shop at Tesco's because they have average jobs and are likely to be on minimum wage and Tesco if affordable so will therefore shop there. The groups are as followed:

Socio economic group| Occupation| Tesco or Harrods|
A| Higher managerial, administrative, professional example surgeon| Harrods| B| Intermediate managerial, administrative, professional example bank manager and teacher| Harrods| C1| supervisory, clerical, junior managerial example shop floor supervisor, bank clerk, sales person| Harrods| C2| skilled manual workers example electrician or carpenter| Tesco| D| Semi skilled and unskilled manual workers example assembly line worker, refuse collector, messenger| Tesco| E| Casual labourers, pensioners, unemployed example pensioners without private pensions and anyone living on basic benefits| Tesco|

Customers of Tesco and Harrods could complain or give feedback in store or online and the business would do their best to fix these problems in order for the business to run at its full potential. (B) Employees

Employees are an important stakeholder to Tesco because without them there would be no one to sell the products. Their job affects the growth of the business because if they do their job well and sell the products the business will bring in money. Employees depend on the business to make sure they are working in a clean and safe environment, there is job security and opportunities for promotion and discounts. Employees can also affect the business if they go on strike because then the business would have no workers to help the business run. They also want the business to do well so they can keep their job because if the business wasn’t doing well it might have to lose workers or close completely. Employees can also have an effect on the business if they let...
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