Stakeholder and Community Engagement: A Report on Tesco's Practices

This report provides a comprehensive analysis of Tesco's stakeholder and community engagement strategies. It begins with an executive summary and introduction, followed by a literature review that defines stakeholders, including those specific to Tesco retail and IT. The report examines stakeholder behavior, particularly in relation to Tesco's digital initiatives like the Clubcard. It identifies contingency plans for stakeholder involvement and explores community engagement strategies, including communication plans. The analysis includes stakeholder management theories and concludes with a summary of findings. The report covers key stakeholders such as suppliers, customers, employees, shareholders, and the community, along with IT stakeholders like database administrators, software engineers, and programmers. It also explores Tesco's approach to material issues, supplier relations, customer service, employee training, and shareholder communication. The report highlights Tesco's commitment to socially responsible practices and sustainable goals, providing a detailed overview of their engagement efforts.

Stakeholder and Community Engagement
Spring 2019

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Stakeholders.................................................................................................................................4
Stakeholders of Tesco retail........................................................................................................7
IT stakeholders of Tesco.............................................................................................................8
Stakeholder Behaviour................................................................................................................9
Contingency plan of Stakeholder .............................................................................................10
Stakeholder Community Engagement.......................................................................................11
Stakeholder Theories.................................................................................................................14
CONCLUSION.............................................................................................................................16
REFERENCES..............................................................................................................................17
APPENDICES...............................................................................................................................19

EXECUTIVE SUMMARY
The report is about stakeholder and community engagement with Tesco which is crucial part
of business because it denotes companies’ efforts to manage corporate reputation. It is essential
for the firm to focus on maintaining stakeholder interest to manage successful business changes.
The report outlined about different stakeholder of Tesco and their role within firm. The study
discussed about stakeholder behaviour with regard to digital advance of Tesco which is Tesco
club card also known as loyalty card developed by firm to retain its potential buyers. The report
identified contingency plan which outlined about involvement of shareholders in business plans
and goals. Also, it discussed about community engagement which is focused on communication
plan that is denotes beats way used by firm to interact with particular stakeholder. Thus, the
study outlined different stakeholder management theories which denotes structured approach of
connecting with stakeholders and to understand n their behaviour with changing business
environment and operations

INTRODUCTION
The stakeholder and community engagement help in identifying the needs of the
stakeholders which assist in increasing profitability and performance of the organisation. In this
assignment, Tesco will be considered which is involved in the retail sector and provide products
such as supermarket, hypermarket, Supermarket and convenience shop. This organisation is
operating in Different countries. In this report, it will provide information about the various
stakeholders and their influence on the business. Moreover, it will consider the information
regarding the behaviour of stakeholders and propose contingency measures which assist in
managing the risk associated with stakeholders’ attitude. Furthermore, it will provide
understanding about the importance of community engagement and the different communication
strategies which assist in maximising the purpose of stakeholders. Also, it will include the
information regarding the stakeholder management theories.
LITERATURE REVIEW
According to Andriof and Waddock (2017), Stakeholder of the business are important for
the growth and success of organisation. With the help of understanding the stakeholder the
organisation will be able to perform its activities as per their needs which will assist in enhancing
the performance and profitability of the business. Identifying different stakeholder of the
organisation will help the firm in meeting the goals and objectives. Stakeholders of the
organisation are those which have interest in the business activities and profitability.
Stakeholders is an important aspect of the business which help the firm in their growth and
success. On the contrary Eskerod and Jepsen (2016), stakeholders of the business has an impact
on the business operation which affect the profitability and performance of the firm. It leads to
reduction in the business growth if the stakeholder needs are not met properly.
Stakeholders
According to Fombrun, Ponzi, and Newburry (2015 ), There are different stakeholders of
the business which have their interest in the business operations. The project of Tesco will
require identifying the stakeholder of the business in order to enhance the effectiveness of the
project. By identifying the project stakeholders, the firm will be able to understand their need
and the benefit the project will provide to them. There are different ways through which the
business is able to identify its stakeholders. The stakeholder can be identified on the basis of
their power and interest. The power of the stakeholder will help in analysing which stakeholders

have the high level of power to influence the business operations and strategies. Moreover, On
the basis of Interest the stakeholders can be identified by analysing the stakeholders which are
interested in the project. With the help of stakeholder matrix, the business is able to identify the
stakeholder on the basis of their keep satisfied, keep informed, monitor and managed closely.
The keep satisfied quadrant assist in grouping those stakeholders which will assist in setting the
requirement regarding the project and they include the investors and the customers. Manage
closely quadrant include those stakeholders of the business which have high interest and
influence on the project It consists of Board of directors, management, government etc. The
stakeholders which are included in the quadrant of monitor are the stakeholders which require
close monitoring It consists of the project members etc. The fourth quadrant include the keep
informed group of stakeholders as they have low level of power but have influence on the
project. On the other hand Vidaver-Cohen and Brønn (2015), the stakeholders have a great
influence on the project which are scale on the basis of high to low. The stakeholders which have
high influence on the business consist of Investors, government, customers, local community etc.
The stakeholder that have low influence on the project will consist of employees, suppliers,
management etc. With the help of Medlow grid Tesco will be able to identify its stakeholders
and will be able to understand the power and interest of each individual stakeholder within retail
and IT sector. The stakeholder in first quadrant may not have close connection with Tesco but
their action have impact on business operations it includes employees of organisation. The
second quadrant include the stakeholders with high power and interest such as customers. The
third quadrant include the low power and low interest it includes public, program developer. The
fourth quadrant have stakeholders with high interest and low power such as community.
Stakeholder matrix
Stakeholde
rs
Internal
and
external
Influence support
/opposite/neutral
Interest Importance
Executives Internal High S High Achieving the
objectives relating
to project
Project External High S High getting higher

sponsor return from the
project
Employees Internal Low N medium Getting job
satisfaction and
career growth
Customer External Medium N High higher value
proposition
Local and
national
community
External High O High High value and
security of
community
Competitor
s
External Low O medium reduce project
profit
Suppliers External medium S High get outstanding
amount
Governme
nt
External High O high perform ethically
and use get tax
income
According to Imrie and Dolton, 2014, it is articulated that acknowledging need of
stakeholders is key to organisational success as it aim at managing success of business keeping
in mind interests of individual working with organisation. Tesco is involved in wide range of
practic4es which helps the business sin outlining need of stakeholders according to priorities like
for managing satisfaction of customers company provides different loyalty cards schemes,
discounts which encourage them to spend more money. On the other hand, to manage
satisfaction of social organisation company is involved in wide range of socially responsible
practices. In accordance with annual report of 2018 it can be said that retailer is focused on
developing differentiated brand in order to create long term value of every stakeholder by
delivering everyday new services. On the other hand, business of Tesco was developed and built
with simple mission of helping everyone by serving better quality of services.

Stakeholder engagement in food waste, health and opportunities
According to Rodrigue, 2014, material issues of Tesco are handled by approach which
comprise Listen, understand and action stages. In listening stage retailer aim at understanding
issues by communicating with customers, employees, suppliers and experts. In this stage issues
ranging from concerns of local communities and impact on environment by the products of
Tesco. Further, in understanding stage management derive the ways of tackling business
problems. In this focus of firm in on determining impact caused by products and services of firm
and its lasting impact. Developing understanding over the issues like food waste, security by
concerning stakeholders helps the enterprise in detailing requirements and interest of
stakeholders within firm. It is the bests stage which helps in focusing in impact of problems in
different stakeholder. Lastly, initiating action in which retailer sets clear guidance of taking
action by concerning individual stakeholders. Communication with stakeholders regarding
change management and taking action for mitigating social challenges helps firm in deriving
long term success.
Stakeholders of Tesco retail
 Suppliers: The board of retail firm aim at building trusted partnership with suppliers and
managing six key performance measures. In accordance with this focus of firm in on
conduction supplier viewpoint survey in which quality assurance is the major focus
which assist in managing progress in services.
 Customers: Customers are the foremost priority of business for which Tesco aim at
managing continuous changes in brand and its services. The retailer aims at making
changes in services on the basis of buyer’s recommendation which helps the business in
serving satisfactory experience. Quality of food is the major focus in which Tesco aim at
strengthen perception of buyers by making food lover stories campaigns which enhances
interest and quality of food product provided by firm (Serving shoppers, a little better
every day, 2018). Tesco raised 2.7 points within one year that is 2018 by organising
marketing communication programme to interact with shoppers.
 Employees: Employees are considered as asset of business where the individuals are
trained to manage effectiveness in services which helps in communicating them values of
business to customers. The employees in Tesco are trained to work with shared
perspective and shared values which helps the management in managing coordination

and cooperation in employees’ activities. Further, board of Tesco is directly linked with
employees where management conducts employee engagement surveys in order to
understand work place expectation of individual employee. Moreover, board of the
company is engaged with employee by regularly visiting every outlet.
 Shareholders: Managing satisfaction and interest of investors play a crucial role for
engagement where board of Tesco aim at maintaining constructive and open
communication with investors that is private, employees’ shareholders and institutional
(Our Approach: corporate responsibility update, 2015). Open and direct communication
of board with investors helps the management in deriving individual expectations form
organisation.
 Social Communities: Management of Tesco is highly focused on managing socially
responsible practices for which company own clear corporate governance framework for
corporate social responsibility. The sustainable goals of firm are focused on managing
sustainable goals like food security, food waste, etc. Further, Tesco aim at improving
resilience of organisation by enabling positive forces like heathy diet for all.
IT stakeholders of Tesco
 Data base Administrator: These are the IT employees of Tesco who focuses on
managing consumer data on application and digital programme of firm. The employees in
retail organisation are focused on managing capacity planning, designing, database
designing, performance monitoring and configuration of digital technology within firm.
For example, for Tesco club card the employees are responsible of managing data of
potential shoppers by coordinating with Tesco finance.
 Software Engineer: These are the IT experts of Tesco who are responsible for
developing and managing innovation in digital technology within the firm. The individual
focus on advancement in digital wold and retail sector. Further, the stakeholders are
responsible for developing a responsible tool for firm with regard to specific requirement
of business environment. For example, in development of Tesco Club card engineers
coding of application for managing data base and card details. Further, the stakeholders
are responsible for running network control system for managing continuous working of
club cards.

 Programmer: These are the stakeholders wo ensure the development of digital
application and tool according to derived mission and vision of firm. The individuals are
responsible for ensure working and designing of application with regard to customer
expectation. For example, programmers of club card of Tesco ensure that processing of
cards are easily accessible and understood by shoppers with regard to points with every
purchase and the method to redeem collected points.
Stakeholder Behaviour
Digital work has boomed retail sector by enabling different and advanced option of growth
which comprise digitalised in store experience, self service checkouts, shelf edge labels, loyalty
cards, etc. However, development of Tesco club card was the initiative which was sophisticated
data driven loyalty scheme. These are the unique scheme tags which depicts individual unique
customer ID in which customer gain points with every shopping (You'll earn Clubcard points for
every €1 you spend on topping up or paying your bill, easy!, 2019). The development of loyalty
card led to tremendous change in operating model of firm and more than 16.5 million customers
subscribed club card. Moreover, it has chnaged that customer purchasing habit where shoppers
are focused on seeking offline and personalised discounts.
According to Felgate and Fearne, 2015, one of the major stakeholders of this initiative is
buyers w for whom loyalty cards have been developed with technological boost. Customers are
the backbone of business and therefore the innovation in IT sector is the change which helped
Tesco in gaining trust of shoppers. The Tesco club card are about Tesco finance where the
individual enjoys additional points with very shopping. The points in card are the savings which
shoppers can use in future as money to buy products. The motive behind launch of club card
was to retain customer for long term and provide the satisfactory and personalised shopping
experienced. The cards also assist the firm in deriving regular shoppers to whom specialised
discounts on specific products is given which is also a successful strategy of gaining attention of
buyers. Club card helped Tesco in driving great customer lifetime value which it encourages
repetitive purchase. Also, the card helps management in forecasting customer demand and
managing product category on the basis of sales.
As per the views of Mollah, 2014, it can be said that change in technology and new
initiative by firm some times leads to demotivation among staff members because of work
pressure, lack of training and motivation. The innovation and new initiatives within firm leads to

various changes which requires adequate knowledge. In accordance with this, it can be said that
it is important for Tesco to focus on new as well as old employee when managing change in
order to protect individual interest within firm and its initiatives. Moreover, when managing
changes in services Tesco needs to focus on very employees’ expectation regardless of their
involvement because no matter what any initiative by firm impacts every employee of firm.
IT employee and legal bodies are the crucial concern when managing changes in services
related to IT advancement. Like to manage successful launch of Tesco Club card it is important
for the Engineers and programmers to adhered to ethics where confidentiality of customer data is
major concerns. Tesco complies with Data protection Act 1998 which helps the firm in
maintaining confidentiality of consumer purchase and personal information. IT programmers are
bound to keep consumer profile private and confidential and therefore the individual
continuously work on coding and network designing. Employees or regulatory body of Tesco
found breaching confidentiality act is liable to get punished and compensate for the same.
However, project sponsors, shareholders and investors are another major stakeholder
which share huge interest with initiative and the changes in services of Firm. The interest of
individual is on cost benefits and fluctuation in goodwill of firm with new initiative. With the
launch of Tesco Club card, the firm is able to gaining interest of customer which led to increase
in repetitive shopping of buyers. The increasing interest of shoppers led to substantial increase in
sales and cost benefits to firm which helped in gaining trust of shareholder. The success of
initiative encouraged interest of shareholders in investing in cost of training and hiring expert IT
developers to maintain adequate control over consumer's data base.
Contingency plan of Stakeholder
In accordance with new technological initiative Tesco can focus on providing training to
its interval stakeholders that is IT and retail stakeholders which will helps in boosting their
knowledge over Tesco club cards. Training to workforce will help in providing systematic
customer experience without any confusion. For example, IT experts can train retail staff about
the basic consumer query which can arise at the time of purchase. This will help in delivering
systematic customer experience where every employee will be able to perform job effectively
and efficiency as training will make the individuals competent (Manage My Account: Make life
simpler and efficient, 2019). Further, management of Tesco will focus on making consumers

aware about rules and regulation of technological advancement which will reduce the risk of
breach and uncertainty.
Managing shareholder knowledge on the basis of changes in initiative and success of inn
digital plans helps the firm in managing shareholder satisfaction. With this regard Tesco can
imply to safe and secure regulation on the basis of initiative and can communicate oy investors in
order to educate them about the change and seek their advice over compliance over new
regulations. It is important for the retailer to keep its emp investors, sponsors and shareholders
happy for which firm can communicate every change in business goals and practices which are
incorporated by firm to deal worth changes of business and business environment. For example,
Board of Tesco should communicate with shareholder about expert IT developers and their
training to employees.
Further, to manage customer knowledge over digital initiative by Tesco it is important for
the organisation to organise marketing session with the motive of educating shoppers about
loyalty card and its benefits (Baker, 2012). Further, Tesco must have its separate department
where trained employees should assist shoppers with queries of loyalty card and its personalised
discounts and schemes. In accordance with this customer should be guided about their right over
club cards with the motive of preventing misconduct. Also, firm can focus on developing virtual
videos to promote and create awareness about digital initiative in order to boost interest of
buyers.
Stakeholder Community Engagement
Parella, (2016) stated that Communication plays an effective role in transferring
information from one person to another. It involves exact and accurate information to be
communicated so that every person are aware about the internal and external working criteria to
achieve targets. Lack of communication and misinterpretation in messages results to heavy
losses to the company and the person who are connected with them. Thus, engagement means
involving every person in that community by discussing that topic which has some interest of
community and attract them to raise issue in some matters. Thus, engagement community is
defined as gathering the people in that group to discuss on some important issue which can affect
the working of the business in the near future.
According to Ayalew, (2018) examined that Community engagement is important in
perspective of stakeholder and organisation as they discuss various issue which helps both of

them to grown for a longer terms and maintain the sustainable relationship with the organisation.
This relationship mainly depends on trust and honestly and they participate only to encourage
their business activities in relation to adopting various project in business. This process is
successful if they satisfy the stakeholder needs and wants. In relation to TESCO if they didn't
engage with the stakeholders, they cannot make an appropriative decision to justify their
proceeding in taking action.
Natarajan, (2017) suggested that Good community engagement helps the TESCO company
to continuously manage their funds between the community and organisation and can enhance
their brand name in the market. As it result in getting more interest of stakeholder in the
organisation and they are ready to invest and deal with other matters in the company. As
communicating not only judge the status of TESCO but it helps them to analyse the various steps
to be taken to execute the issue of stakeholder in the organisation.
Scandelius and Cohen, (2016) viewed that TESCO had to manage their strategies to
communicate properly and clearly with the stakeholder and organisation to deal in certain
important matters. Failure in project often result in not executing the planning and also not
maintaining the level of work which represents the image of the company. If examines that there
is lack in connecting the people through their techniques and strategy which they need to
enhanced according to the changes in time.
Dobson, (2016) stated that as per growing in business strategies it becomes more
complicated to communicate with the stakeholders and community to enhance the development
skills in company. Thus, to remove such complication they have to make closure relationship
between them to discuss and guide them in important matters, remove uncertainties while
communicating, and eliminate the errors which affect their projects status to be carry forward.
As per Lawless, (2017) to engage the stakeholder and organisation more seriously towards
this activity they appoint the communication audit to develop the communication environment
between them so that every one can discuss their issue and decision carefree through this audit
committee. They can guide them to make a proper plan to discuss various matter which maintain
the interest of stakeholder for long lasting.
Stakeholde Informatio Project Communic Time Level Reason