Evaluate whether Tesco’s Stakeholders will benefit from the company’s growth.
Tesco have several groups of stakeholders that could benefit from the growth of the company. A stakeholder is a group of people or an individual with a direct interest in the success of a business.
The stakeholders that will benefit the most are employees. In the long run employees could benefit if the company is in a secure financial position due to the company’s growth. This is because, Tesco will be much steadier and will be able to pay their wages without any problems and also if possible it could result in a rise in wages by a fair amount. Therefore, Tesco will be in a capable financial state to keep these workers employed, which will benefit the employees as they have a job and a secure income. Employees will also benefit by working in a big and successful firm because there is more job security. They will continually need an efficient workforce to carry out day to day jobs so it is unlikely that employees are fired often. Also, there are better conditions for the employees in a bigger firm because Tesco want their workers to be happy and feel safe at the work place to overall keep morale high amongst all members of staff.
The next stakeholders that will benefit the most are the shareholders. A part of being a shareholder means that you receive a dividend. A dividend is a percentage of the company’s profits depending on how much the shareholder owns. As Tesco grows, revenue should increase and therefore so should profit. So in the long run there would be a rise in dividend value because of the increased sales Tesco would be achieving. However, dividends may have to fall beforehand in the short run if some of the profit is retained to help pay for the growth of the company.
In addition, suppliers may benefit due to Tesco’s growth. As Tesco gets bigger, they will need more constant supplies in order to satisfy their customers, so their suppliers are going to be needed...
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