Relationship between TESCO and its Stakeholders

This report analyzes the relationship between TESCO and its stakeholders, including internal and external stakeholders, and the influence they have on business practices. It discusses the importance of building trust, maintaining healthy relationships, and engaging stakeholders in decision-making processes. The report also highlights the impact of stakeholders on TESCO's business practices and the company's efforts to align with legal and social regulations.

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The chosen company for this report is TESCO, the third largest multinational grocery retailer
in Britain.
This report will analyse the relationship between the TESCO company and their stakeholders
and the influence over business practices (Boaz, A. and et.al., 2018).

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. For every organisation to run successfully, there are few sets of people behind it. The
company has both internal as well as external stakeholders who have a direct interest.

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Internal stakeholders include employees, shareholder, managers, director and the board
members.
External stakeholders include customers, government, suppliers and society.

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Employees: Motivated and encouraged employees lead to higher level of customer
satisfaction and the overall brand value of the organisation. Approx. 4,00,000 people are
employed by TESCO in more then 4,500 stores all over the world.
Shareholders: The company sell their shares for investment and in return the shareholder gets
a hold on the organisation. More investors mean better opportunities for a company to expand
in the market.
Managers: Managers are the in charge of meeting business goals and objectives. They ensure
that the employees are performing well by providing with proper training and maintains a
good relationship with them.
Director/Board members: The most powerful group of people and all the important decisions are
influenced by them. Director’s control and manage the business and are directly related with
the working of it.

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Customers: The interest of these customers is not in the company’s profit rather on the quality
of product and services it provides (Stakeholder Definition. 2022). The company take cares of
their needs and demand. A good relationship with them helps in increased profit and growth
of the company.
Government: The company must be in align with tax policies, interest rate, safety measure,
social and environmental sustainability. TESCO makes sure to abide with the policies for
smooth functioning of the company. Government has a monetary interest in company as they
collect taxes from the company and the employees as well.
Suppliers: TESCO has a huge range of suppliers who make sure the quality of goods. Without
the suppliers, the company would not have anything g to sell in the market. Maintaining a
proper stock is important for the smooth functioning.
Society: TESCO provides huge job opportunities, range of goods and services to the society.
The cited company donate a good amount of profit to help the society in need. The
company’s growth has a straight impact on the economic development.

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 TESCO communicate their goal and objective to the stakeholder which provide them a
sense of belonging.
 Meeting is held between the directors and the stakeholder to discuss the future strategy
and growth of the company.
 The company engage with their customers through different promotion schemes,
discount, free gifts, special offers etc.
 It takes into consideration all the legal matters like rules and regulation, social and
environmental dimensions before launching any new product and services.

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 Build trust: Stakeholders are the face of the company. These engagement helps in
building trust towards the company in the long term (Bal and et.al., 2013). The
reputation of the company will attract more customers.
 Higher profit: High profit margin is directly related to the happy customers. It will aid
in the expansion of the company
 Sustainability: Engaging stakeholders in the decision-making process will surely
motivate them to invest more in the organisation.
 Healthy Relationship: involving stakeholders results in more productivity, high profits
and increase in customer satisfaction.

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