I am going to evaluate the different influences that Tesco’s stakeholders have over the company

I am going to evaluate the different influences that Tesco’s stakeholders have over the company. The stakeholders that will be discussed are; customers, employees, suppliers.
The first stakeholder I will evaluate will be the customers of Tesco. The company’s customers contribute to the profit of the company and its turnover by purchasing products/services. Customers exist as stakeholders for Tesco because of the financial reasons; their customers do not expect their products to be expensive or overly priced. This is why they would choose to shop at Tesco, the company has reasonably priced products that are of a good quality and so Tesco is able to please their stakeholder.
Businesses will survive through their customers staying loyal to their brand and having customers shop at their stores. One way that Tesco ensures they get regular customers is through promotions such as ‘loyalty cards’ and their ‘buy one get one free’ discount offers. This helps the business to bring in loyal customers that trust the brand. The company found a way to ensure that their customer loyalty was successful where other businesses may have failed. The company is successful in explaining the positives of their Clubcard and they are good at ensuring that their customers’ needs are always met.
Customers will influence the business by the demand of cheaper services. Tesco as well as other local and national stores will respond to this and will have sell their products for the cheapest price possible so they can keep their customers. This will then cause competition amongst other stores as whichever store has the cheapest products will then attract the most customers.
The second type of stakeholder that I will assess will be the internal stakeholder (the employees). Employees are hired by their employer to do a specific job; the employees are an important stakeholder because, they have direct contact with the businesses customers.
This is relevant information because it’s important that the company keeps their employees happy as they are the “face” of the business. The employees help customers with any questions/queries and can recommend products that are able to bring in more business for the company. The company’s employees will have a direct influence on the business, this is by their efficiency and productivity when completing tasks.
If the employees feel they are being treated unfairly, they are able to take industrial action. The employee may feel as though; they have unfair working conditions, pay or disagree with the company’s policies. If this is the case, employees can take action. This can be via; bans overtime, sit-ins or in extreme cases going on strike.
Tesco cares about their employees and ensures that they are treated as the company’s most valuable assets. This is by actively involving employees in important decisions and promoting a non-discriminatory work environment. The company says that “it is vital that we listen to and engage with our people as often and as well as we do with our customers. Our staffs give anonymous feedback through our annual viewpoint survey. “This caring attitude will benefit the staff and the company because they treat their employees with respect.
The final stakeholder I will evaluate will be the supplier (an external stakeholder). The suppliers are the people who supply a business with a service. A supplier’s reliability is also important in any deal that is being made, as it will affect the production, suppliers are able to decide whether they should increase prices for orders made by a company (Tesco). This could essentially affect Tesco’s profits; If orders do not arrive on time, then finished goods will not be available to sell to customers. Potentially, the suppliers could also change credit terms meaning that Tesco may lose money.
Tesco has been able to build string partnerships with its suppliers; the partnership approach means that their customers have a constant flow of goods and better-quality products. Tesco as a business does not encourage any practises that may be unsustainable for example below-cost selling. These are not only bad for suppliers but also bad for customers and Tesco. By having a partnership, the suppliers are benefitted from having a market for their products to grow. This is beneficial for Tesco and the supplier because it enables regular payments to be made on time and a commitment to a shared understanding of customers and the changing consumer behaviour.