Influence of Stakeholders on Business Practices

Influence of Stakeholders on
Business Practices

Table of Contents
Introduction......................................................................................................................................3
Stakeholders : .............................................................................................................................3
Analysing the relation of internal and external stakeholder with business:................................3
Conclusion.......................................................................................................................................5
References:.......................................................................................................................................6

Introduction
This report focuses on the impact of external and internal stakeholders on business
practices. Internal stakeholders are the ones who are directly involved in the operations of the
business concern. Whereas, external stakeholders are the ones who are indirectly impacting the
business operations. Both of them gets affected with each other decisions. All the stakeholders
impact on the business operations some has major impact well some has minor. In this report,
Tesco is considered to check its stakeholders impact on its operations. It is a British groceries
and merchandise retailer headquarter in Welwyn Garden City, England. Moreover, they offer
variety of goods ranging from clothing, electronics, furniture, petrol, financial services and so on.
Stakeholders :
They are individual or group who have interest in company, business or organisation. They are
two type of stakeholders internal and external. Internal are the ones who works as a part of
business such as owners, managers , employees and so on. They participate in the coordination,
funding, resourcing of business operations and impacts directly the profit generating capacity of
the concern. Whereas, external stakeholders are the ones outside the business but affects the
business decisions and actions. External stakeholders are customers, government, suppliers and
others. They are engaged in contributing views and experiences of them which indirectly impacts
the business concern.(Bruna and Nicolò, 2020)
Analysing the relation of internal and external stakeholder with business:
It becomes crucial for the business concern to keep awareness of its stakeholders. The
activities of the organisation will impact stakeholders decision. In the same way, stakeholders
decision will impact the decision that business makes. (Brulhart, Gherra, and Quelin, 2019) So,
in this Tesco is considered for monitoring the relation of internal and external stakeholders on
business practices.
 Shareholder: They are known as the owners of the business concern due to which they
have major impact on activities of business. They are the owners who makes all