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Stakeholders’ Influence on Two Contrasting Organisations

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(M1)
Explain the points of view from different stakeholders seeking to influence the aims and objectives of two contrasting organisations- say how they influence aims/objectives.

The British Red Cross has an aim to care for people in ‘crisis’ they are a not for profit charity and a volunteer led humanitarian organisation

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Here are 5 of their main stakeholders:

Donors
Employees/Volunteers
Communities
Victims
Government

Donors

The donor’s interest with Red Cross would be that they want to help people in crisis by giving donations to the Red Cross, which will then be sent to the victims (the people that are in crisis).

The donors have a massive influence for the Red Cross as they provide the donations for the Red Cross to give away to the victims. If the Red Cross didn’t receive donations they would not be able to operate well as the purpose of the Red Cross is to help people that are in crisis, and if they don’t have any donations they would not be able to donate anything to those in crisis.

Employees/Volunteers

Employees and volunteers are the people that would want to assist the Red Cross by providing a service to help victims. They would both be concerned for the success of the business as the employees would want to be getting paid well and the volunteers would want to get an experience of helping people out. The difference between the employees and volunteers is that the employees would be getting paid for working for the Red Cross on the other hand; the volunteers would also be working for the Red Cross however they would work for free.

Without the employees and volunteers the Red Cross would not be able to function well as they may not have anyone to provide the right service to the victims of a crisis which shows that they are very important in shaping the red crosses’ aims and objectives.

Communities

The community has a positive point of view for the Red Cross as they would like Red Cross to provide jobs and work for local people, also they may feel the need to donate any unwanted items to the Red Cross (as there may be charity shops that are within the local community) due to them being able to send donations to areas of crisis. They may influence the aims of the Red Cross as the Red Cross may need the local community to help by donating items they don’t need and by volunteering for the Red Cross. If the community doesn’t help along with the charity, this can mean that the Red Cross would have a negative reputation as they may not be able to have local volunteers and donations to help then run, which will mean that they wouldn’t be meeting the purpose of helping people in crisis.

Victims

The victims are the main influence to the Red Cross’ aims and objectives, as they are the people that need the Red Cross to give help and assistance to them. Red Cross would provide a service of aid to the victims who are in a crisis, as this is their aim. Victims would expect the Red Cross to give a service of donating items that are unwanted from donors (as this is what the Red Cross intend to do). If there weren’t any victims the Red Cross wouldn’t have existed at all, as they are the main reason for the Red Cross to be set-up (in order to help people in crisis) so they are very important for the Red Cross, as the Red Cross provide a service of aid for them.

Government

The government also has a vast influence for the Red Cross as they are mainly funded by the government. Although the Red Cross relies on donations from the public via charity shops and online, the government also invests money into them so that they are able to run and function well. Moreover, they would want the Red Cross to benefit people that are in need of help/aid within the local area (by providing them with voluntary/paid work or donating items to those that are in need of it) and want the Red Cross to actually use the money that they have been given (from the government) to be invested in charitable activities. Without the government the Red Cross may not be able to run as they are the key investment that the Red Cross depends upon.

Tesco has an aim/objective to make a profit as they constantly, try to be competitive and grow in the sales they make and the products they sell. Tesco- ‘We make what matters better, together’

Here are 5 of their main stakeholders:

Customers
Employees
Suppliers
Investors
Government

Customers

The customer’s interest within Tesco would be that they would want to buy a range of products that are of a high quality or receive or a good service from Tesco. If the customers do not receive the products/services they have paid for they would be unhappy with Tesco, which could mean that they may move to a competitor, causing Tesco to be losing customers and could also mean that, Tesco would get a negative reputation from this and can further reduce the amount of customers that go there. This shows that customers have a big influence for Tesco, as Tesco would need them as a source of income. Tesco wouldn’t be meeting their aims if they didn’t have customers because they wouldn’t be making a profit and wouldn’t be ‘making what matters better, together’ (which is their purpose).

Employees

The employees are related to Tesco as they work for them and they are a part of their team, who try to provide a good level of service for customers. The employees represent Tesco as they are the first point of contact for customers to use (when they are in a Tesco store) which means that the employees would have to provide a customer friendly service and meet all of their customers’ needs. If employees didn’t give a good service to their customers, the employees wouldn’t be representing the business in the right way which can cause the customers to not return to Tesco and go to a competitor. Employees would want Tesco to provide good working conditions, suitable training and promotion prospects.

Suppliers

Suppliers are a stakeholder for Tesco as they provide the products and services for Tesco to then sell on to their customers. They would want to achieve regular orders and a high corporate image from Tesco, so that they could have a reliable and consistent source of finance. If Tesco did not have any suppliers, they would not be able to be competitive and meet their customer’s needs (as they wouldn’t have products for their customers to buy, causing sales to drop) which could also mean that they wouldn’t be meeting their purpose of making a profit. This means that Tesco would have to maintain a good working relationship with all of their suppliers so that they could buy products at a good price and be able to stock a variety of products for their customers.

Investors

Investors are another stakeholder for Tesco due to them putting money into Tesco, and expect the business to meet their purpose of making a profit so that they can receive high dividend payments. In addition, if Tesco didn’t have any investors this would mean that Tesco might find it hard to pay for costs such as: wages to employees, costs to run their stores and branches, and costs to buy stock from their suppliers. This means that the investors have a huge impact for the aims and objectives of Tesco as they have helped Tesco to grow and expand in the markets that they operate within by providing finance for them to use.

Government

The government is a stakeholder to Tesco, as the Food Standards Agency is a part of the government that looks at the health and safety of food that a business may sell/produce. The food standards agency may look at the quality of the food that Tesco sells to see if it is of a high quality. If the Food Standards Agency find out that Tesco are not selling food of a high quality they can ban/fine them for producing or selling this food, which could also lead to Tesco having a negative reputation (as they wouldn’t be offering high quality products to their customers) and mean a loss in their sales and profit.

Cite this Stakeholders’ Influence on Two Contrasting Organisations

Stakeholders’ Influence on Two Contrasting Organisations. (2016, May 12). Retrieved from https://graduateway.com/stakeholders-influence-on-two-contrasting-organisations/

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