P2- Describe the different stakeholders who influence the purpose of two contrasting businesses.
A stakeholder is anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. There are two different types of stakeholders; internal and external. Internal stakeholders are groups within the business e.g owner/workers and employees. External stakeholders are local and national communities and governments, these are groups outside of the business. The key stakeholders in a business include customers, suppliers, employees, local and national communities and governments.
Customers want a business to produce high quality value for money products. Customers like to see promotions and offers that give them better value for money, they also may like to see products that provide relief to the less fortunate or products that are environmentally friendly.
Customers can influence Tesco by deciding to continue to purchase goods and services from Tesco. Customers can choose to take their custom elswhere, therefore this influences the profits that Tesco would make.
The people who donate to the charity Oxfam are major stakeholders as Oxfam would not be able to be a succesful charity without the donations as they are the key to the money that is raised. Donators are major stakeholders as they’re also the largest investors to charities like Oxfam and influence it greatly. Without this support network; work would be limited, goods would not be sold from Oxfam shops and business would be lost.
Employees are stakeholders within the company as the business provides them with a livelihood or, if the organisation is a non profit organisation, then this provides a sense of generosity for those who work for free. They seek security of employment ,promotion, opportunities and good rates of reward.
Employees influence the business Tesco by being a main part of how the business is run successfully. Without employees, Tesco supermarkets would not be able to operate and would fail to provide a service to the public so the whole business would fail without their involvement.
The staff/employees of Oxfam influence the charity greatly and are the main reason as to why the charity is successful. They provide the friendly customer service to those who decide to shop at the Oxfam stores. Staff usually do work for free so this allows Oxfam to spend more on developing third world countries, again this has an impressive influence.
Suppliers want steady orders and prompt payment, they also want to feel valued by the company that they supply.
Suppliers are interested in supplying Tesco with goods because of the business they get from them and the profit that they receive. They influence Tesco because if the suppliers go out of business then Tesco will have to find new suppliers that may not offer the same high standards as the previous supplier.
Suppliers/donators influence Oxfam greatly. Without the public supplying Oxfam shops with goods to sell, the shops would fail and would not be able to raise money to support the charities work for third world countries.
This may be a sole trader or partnership. In a company it would be the shareholders. A charity would be considered to be owned by trustees’ owners often have a great influence on the business and are considered important stakeholders because they might have put a good part of their life into setting up a business. Owners like to see the success of profit making and the growth of the business.
Tesco is a public limited company which means that share holders own it. The share holders own and influence the company by buying shares for a profit, the money from the share holders allows Tesco to expand, promote, and create a successful service by still returning a profit to the share holders. With out them, Tesco would be limited to the amount of pofit it could receive.
Oxfam is a voluntary ownership which means that each member is considered a trustee. Trustees influence the charity as its success would be limited with out them. Trustees often put money into the charity, hot to gain a profit for the charity. This allows Oxfam to expand and continue work around the world. Trustees often make important decisions that can improve the amount of money that is raised.
Local and national communities. The actions of business can have a dramatic effect on communites, for example, if a supermarket brought a vast amount of land the public may not be pleased by the noise pollution and changes. Community leaders, therefore, represent important interest groups.
Tesco-Local communities are interested in Tesco because of its effect on the area and what the superstore could bring to a community. An example of this is if a superstore offered 24 hour services then this may cause oise pollution for the community. The local community influences the success of Tesco by taking their custom to Tesco stores, they could easily take this elsewhere meaning Tesco loosing custom and profits.
Oxfam- The community are often interested by Oxfams work as they either want to buy good from shops or help with raising money. The community influences the charity by offering its support to help with fund raising. With out the communiy support Oxfam would not be able to keep shops open and raise money as their would be no custom.
Governments These want business to be successful to create jobs and pay taxtes. They want to see prosperous business that take a full responsibility in looking after the welfare of society.
Tesco- The government are interested in Tesco for its tax and employment rates. They influence Tesco if they increase VAT. Tesco would have to increase product prices that may decrease sales. The government may pass a law that could change the wages of employees at Tesco’s which can either increase or decrease the profits made.
Oxfam- The government are interested in Oxfam as the charity is a world wide known charity. THe government may want to help the charity to expand and raise money to show their support. The government influences Oxfam by donating to the charity. The government may also pass laws concerning charities which would effect Oxfam greatly.
Cite this Describing and Analyzing Stakeholders
Describing and Analyzing Stakeholders. (2016, May 16). Retrieved from https://graduateway.com/describing-and-analyzing-stakeholders/