This report discusses the influence of stakeholders on business practices, focusing on internal and external stakeholders. It explores the importance of managing stakeholders in the business environment. The case study of Tesco, one of the largest retailer brands in the UK market, is used to illustrate these concepts.
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 TASK...............................................................................................................................................3 Stakeholder influence on business practices................................................................................3 CONCLUSION................................................................................................................................5 REFERENCES................................................................................................................................6
INTRODUCTION Business environment refer to the surrounding of the business in its internal and external environment and the working of the company in the environment including the stakeholder’s interest and influence in the company. Tesco is one of the largest retailer brands in the UK market. The report will help in understanding the business environment (Kozubikova,2017). TASK Stakeholder influence on business practices Corporate Stakeholder: - A corporate stakeholder is a person who can be affected or a group of people who can get affected by the action of the business. Every company have stakeholders in both internal and external. Internal Stakeholders: - Internal stakeholders are those parties and those individual or group that have directly participate in the management of the company. Tesco as one of the top retailers in the UK market with most of the share in the retail sector in UK. There is internal stakeholder in the Tesco which directly affect the management and the decision in the internal part of the company. Internal stakeholder influences the success or failure in the entity as they have vested interest in the company. Primary stakeholder is the second name of the internal stakeholders. Internal stakeholders are dedicated to the company in providing the services. They have a high affected on the decisions, performance and other activities of the company. If there is an absence in the internal stakeholder the company can’t survive long run. That’s why they have such a great impact on the performance of the business. Internal stakeholders of the company: - Employees: - Employees are one of the most important part of the company and are the crucial element of the company. They can influence the whole company and for that Tesco give different things and rewards to maintain the employee rely on the company and stay motivated and work hard for the company and achieve the goals. Tesco are dedicated to its employees. Owner: - Owner is an internal stakeholder which can directly affect the business with the decision he made in the company and owner is the person who keep other motivated and influence the company to work in a positive way. 3
Managers: - manager is the person who control all the employees in the company and manage their working in the company and keep them focused on the working to maintain the business objective and keep them motivated. Boards of Directors: - Board of directors are the group of individuals who governs the incorporated entity of the company. They are elected by the member of the company and work for the company to govern the company in best of the decision and action which need to take care of. Investors: - Investors are those people who invest the money in the company and give the company a good amount to work in, it can be in terms of money, shares etc. Tesco have different investors and they plays an important role in the internal decisions of the company and are a part of the internal stakeholders. External Stakeholders: - External stakeholders are those interested parties in the organization who are not a part of the companies nor in the management of the companies, but they have indirect affect in the company and the working of the company. They are the outsider parties and are the part of the external environment of the company. They are also known as the secondary stakeholder in the company. They are the operator’s monetary information of company, to know about the profitability, liquidity of the company. External or secondary stakeholders do not participate in the regular activities of the company and the activities of the entity. But the actions influence them which were taken in the company. They deal externally in the company; they have no ideas related to the internal factors and matters in the Tesco. External stakeholder of the company: - Suppliers: - Supplies are those who directly influence the working of the Tesco from outside and affect the decisions also. They provide the basic raw material and other products. They are the people who supplies the product and stocks to the company. Suppliers influence the working by the stock capacity and the raw material capacity (Veselovsky,2017). Customers: - They are the king of the business as they are the main people who will consume the product made by the company and they only will help the company to get the objective complete. They are those who directly influence the working of the company and are the main 4
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people for who the company is working in. Tesco is keep on giving its customer the best of the qualities. Creditor: - They are those external factors and individual or financial institution who provide the funding to the organization. Creditor are one of the main investors and are an important part of the company to run the operation in a proper way. Clients: - Clients are the parties to whom the company is providing its product and services in the market. Tesco produce a lot of varieties in the retail market and the client is important for the company to sell its services to the wide range. They play a very crucial role in making the company work in a good level. Government: - The external stakeholders include the influence as the government is a part of external stakeholders. They play a crucial role in the market as they make policies and the procedure to do the working in the market and can influence the working and operations of the Tesco. The laws include the tax and everything which the company need to fulfil. Society: - Tesco need to be aware about the society as the influence in the market and operation of the company is high from society point of view. They directly involve in the business and for that Tesco is trying hard to meet the society needs (Hamilton,2018). CONCLUSION The report helped in understand the importance of the business environment had the influence of the internal stakeholders and the external stakeholders are very important in the working of the business and the Tesco is working hard to manage all the stakeholders in a positive way to keep the working going in good directions(Cherunilam,2016). 5
REFERENCES Books and Journals Cherunilam, F., 2016.Business environment. Himalaya Publishing House. Hamilton, L. and Webster, P., 2018.The international business environment. Oxford University Press.Online Kozubikova, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and entrepreneurs’genderonperceptionoffinancialriskinthesmes sector.Journal of Competitiveness. Veselovsky and et.al., 2017. Business environment in Russia and its stimulating influence on innovation activity of domestic companies.Journal of Applied Economic Sciences.12(7). 6