The Relationship and Influence of Internal and External Stakeholders on Business Practice: A Case Study of TESCO

This report discusses the stakeholder analysis of TESCO, evaluating the relationship of stakeholders with the organization and the importance of CSR. It concludes that identifying and evaluating stakeholders is crucial for developing suitable strategies for growth and productivity, and having a positive CSR enhances brand image and attracts customers.

Project

Contents
INTRODUCTION.......................................................................................................................................3
MAINBODY...............................................................................................................................................3
Discussing and evaluating the stakeholder of the organization................................................................3
Analyzing the relationship of stakeholder with the organization.............................................................4
Evaluating the CSR and its importance...................................................................................................5
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
The stakeholder of an organization refers to individuals that have interest in the company
and can either affect or be affected by the organization. The primary stakeholders of an
organization generally consist of investors, employees, customers and suppliers. For the
following report TESCO has been taken into consider which is a multinational groceries and
general merchandise retailer headquartered in Welwyn Garden City, UK. The fowling repot will
highlight the stakeholder of the organization through utilization of stakeholder analysis. In
addition to this it will discuss the relationship of various stakeholders relative to the company
along with evaluation of its CSR.
MAINBODY
Discussing and evaluating the stakeholder of the organization.
It is crucial for an organization to evaluate its stakeholders in order to gain valuable
information on how the organization can effectively enhance its overall performance as well as
productivity in the markets. It also allows the business to evaluate its relations with its various
stakeholders and develop understanding how the communication be enhanced. In context to
TESCO, the organization has various stakeholders with various roles that influence the
operations of the organization. It is vital for the management the organization to classify the
stakeholder of the organization in order to better understand their importance for the business.
Stakeholder analysis has been utilized and elaborated below in context to TESCO in order to
further undersnt the aspect of stakeholder:
Stakeholder analysis:
The stakeholder analysis of matrix allows an organization to map its stakeholder relative
to their ability in impacting the project either low to high against their view of the project which
can be negative or positive. Given below is Mendelow’s Stakeholder Matrix in context to
TESCO:
Low Interest – Low Power:
This aspect of the matrix refer to the stakeholder that have low interest in the business
operations as well as possess little no power in impacting project of the business. In context to

TESCO, its customers fall under this category as they have low interest in the overall operations
of the organization and cannot influence them as well.
High Interest – Low Power:
This aspect of the matrix refer to the stakeholder that have high interest in the business
operations as well as possess little no power in impacting project of the business. In context to
TESCO, the employee of the organization are the type of stakeholder that come under this
category of the matric as they have high interest in the operations of the organization as they
working achieving its goals and objectives but posses less power in influencing business
operation.
High Interest – High Power:
This aspect of the matrix refer to the stakeholder that have high interest in the business
operations as well as possess high level power in impacting project of the business. In context to
TESCO, the shareholders and investors of the organization fall under this aspect of the matrix
has they possess both high interest in the performance of the business along with high level of
power in influencing its operations.
Low Interest – High Power:
This aspect of the matrix refer to the stakeholder that have low interest in the business operations
as well as possess high level power in impacting project of the business. In context to TESCO,
the government is the stakeholder that comes under this category of the matrix as they have
relative less interest in the operations of the business but have high level of power in influencing
them through laws and regulations.
Analyzing the relationship of stakeholder with the organization.
There are various stakeholders of TESCO that influence its business operations. Given
below are the relationship between the organization and its various stakeholders:

Customers:
The organization has to focus on meeting the needs to these stakeholders in order to keep
them satisficed and ensure their business operations are effective.
Investors:
These stakeholders are the key players for the organization and provide crucial support in
business operations through both financial and expertise support.
Government:
This stakeholder for the organization is least concerning form the management as it has
relatively less influence on the operations of the organization as it operates in a relatively stable
political environment.
Employees:
It is crucial for the organization to show some level of consideration when it comes to
their employees as they are a vital element in helping the business achieve its goals and
objectives.
Evaluating the CSR and its importance.
The concept of CSR refers to Corporate Social Responsibility within management which
helps companies integrate social and environment concerns in their business operation along
with interactions with their stakeholders. Given below is the CSR in context to TESCO:
Environmental responsibility:
This responsibility focuses on fulfilling the environmental obligations in order to develop
a positive brand image, In context to TESCO, the organization should focusing on sustainable
business practices in order to have a positive impact on the environment.
Ethical responsibility:
This responsibility pays emphasis on promoting positive ethics within the organization in
order to enhance its business operations. In context to TESCO, the organization should instill

positive ethics related to development of products along with work culture in order to enhance its
business operations.
Economic responsibility:
This responsibility states that an organization should focus on enhancing the economy
and ensure economic growth through it operations. In context to TESCO, the management of the
organization should ensure that its operations are able to provide economic growth in order to
enhance brand image.
CONCLUSION
From the above report it has been concluded that, it is crucial for an organization to
identify and evaluate its stakeholder in order to develop suitable strategies that will help the
business attain growth as well as high level of productivity and performance in its business
operations. In addition to this the report was able to conclude that, it is ital. of a business of have
a positive CSR in the market as it allows the business to develop an enhanced brand image
relative to its competitors which helps in attaining growth and attracting customers in an
effective and efficient manner.

REFERENCES
Books & Journals:
Fairhurst, K. J. and Lusinga, D. D., 2020. Role of stakeholders in business rescue. South African
Journal of Business Management, 51(1). pp.1-11.
Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2020. A stakeholder theory perspective
on business models: Value creation for sustainability. Journal of Business Ethics, 166(1).
pp.3-18.
Kivits, R. and Sawang, S., 2021. Stakeholder Analysis. In The Dynamism of Stakeholder
Engagement (pp. 29-43). Springer, Cham.
Nankervis, A., Prikshat, V. and Dhakal, S., 2019. Mapping stakeholders of graduate work-
readiness (GWR). In The transition from graduation to Work (pp. 31-42). Springer,
Singapore.
Ramesh and et. al., 2019. Consumer's response to CSR activities: Mediating role of brand image
and brand attitude. Corporate Social Responsibility and Environmental
Management, 26(2). pp.377-387.