Stakeholder Influence on Business Practices

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.

Business Environment

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.
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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
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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).
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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’ gender on perception of financial risk in the smes
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).
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