Business Strategy - Internal and External Stakeholders Taking Tesco Plc

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Business Strategy
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BUSINESS STRATEGY 1
In this report, the discussion is based on concepts of business strategy related to stakeholders
and mission statement. It aims at explaining varying of internal and external stakeholders
taking Tesco PLC as an example. Further, the impact on business operations due to different
stakeholders is going to be discussed as well.
1. Stakeholders are the one who affect the policies, actions and objectives of the
company with the help of which business draws its resources. The key stakeholders of
Tesco PLC are creditors, customers, competitors, local communities, suppliers,
shareholders, pressure groups, employees, and the government (Rahman, 2019).
- Mission statement define the company’s reason of existence and working that shows
its major customers, identification of products and services produced, and the
geographical location of its operations. The mission statement of Tesco PLC is to be
the best for its customers by helping them to enjoy life with better quality and easy
way of living (Mihăiloaie, 2013).
2. a) External Stakeholders
- Pressure Groups of Tesco PLC try and help employees with problems, for instance,
sacked employees can get their jobs back with the help of pressure groups such as
Trade Union Usdaw (Kukreja & Gupta, 2016).
- Local community being an essential part of society depends on Tesco PLC providing
employment around their society, such as individuals living around Batley and
Dewsbury. Here, Tesco helps in preventing environmental pollution with other
problems and noise pollution as well affecting the local community.
- Government is a huge part of Tesco PLC when the information is needed regarding
the business for the response. The company is legally obliged to pay taxes to the local
revenue.
b) Internal Stakeholders
- Employees are essential for the Tesco PLC where the company cannot run its
business without having strong influence.
- Shareholders with common interest in the company’s success and in its high profits,
managers having interest in the company’s growth with the expense of short-term
profits.
- Investors of the Tesco with Investor Relations team meeting analysts from the
financial institutions representing shareholders.

BUSINESS STRATEGY 2
3. Impact of stakeholders on business operations
Stakeholders in order to gain more profits take better decisions and try reforming the
administration so as to yield better results. TESCO is a huge company with billions of
turnover (Jones, et al., 2016).
Internal stakeholders such as the investors take initiative and trust the administration with the
investments they make in the business while, the shareholders are the ones taking certain
specific decisions regarding the regulation and management of the company. Employees on
other hand contribute their talent and skills so as to yield better results or gain more and more
profits effectively while managers giving strategic directions in the company.
On the other hand, external stakeholders such as competitors impact Tesco massively such as
Aldi putting pressure significantly on pricing policies. And, suppliers impact the company by
usually exercising overall related to the increased prices of products affecting Tesco’s profits.
Even, their reliability affects the production and not arriving on time to the customers.

BUSINESS STRATEGY 3
References
Jones, P., Comfort, D. & Hillier, D., 2016. Materiality in corporate sustainability reporting
within UK retailing. Journal of Public Affairs, 16(1), pp. 81-90.
Kukreja, G. & Gupta, S., 2016. Tesco Accounting Misstatements: Myopic Ideologies
Overshadowing Larger Organisational Interests. SDMIMD Journal of Management, 7(1), pp.
9-18.
Mihăiloaie, C., 2013. From vision, mission and values to KPIs at Tesco. [Online]
Available at: https://www.performancemagazine.org/from-vision-mission-and-values-to-kpis-
at-tesco/
[Accessed 11 December 2019].
Rahman, M., 2019. Stakeholders of Tesco (An analysis of Tesco’s stakeholders). [Online]
Available at: https://www.howandwhat.net/stakeholders-of-tesco-an-analysis-of-tescos-
stakeholders/
[Accessed 11 December 2019].