Internal & External Stakeholder Influence on Tesco's Business Strategy

This report provides a comprehensive analysis of Tesco's stakeholders, distinguishing between internal and external groups and examining their respective influences on the company's operations and strategic decisions. It reviews relevant literature on stakeholder analysis and engagement, highlighting the importance of understanding stakeholder priorities and addressing sustainability issues. The report delves into the relationships between various stakeholder groups, illustrating how the actions of internal stakeholders, such as employees, impact external stakeholders like customers, and vice versa. Furthermore, it emphasizes the significant role of wider society, including government regulations and trade bodies, in shaping Tesco's internal operations. The conclusion underscores the importance of stakeholder analysis for Tesco and recommends that the company identify the impact and influence of stakeholders on each other to reduce conflict, improve collaboration, and enhance productivity. This document is available on Desklib, a platform offering a wide array of study tools and resources for students.

Business Environment

 INTRODUCTION
 Literature Review
 Analysis of Relationship and Influence of Internal and External
shareholders on Tesco
 CONCLUSION
 REFERENCES
Table of Contents

Stakeholders of the business and organisation are those individual, group and
organisation that have capability to affect the business and its functioning. They
can also be get affected by the functioning of the business. This does not require
whether they are directly or indirectly related with business and its operations.
Stakeholder analysis is undertaken by the company to identify impact and
influence of the stakeholders in the organisational operations. Tesco also
undertake activities to engage its stakeholders. This study will discuss about
stakeholders of Tesco. Tesco is British multinational groceries and general
merchandise company.
INTRODUCTION

Literature Review

Stakeholder Analysis as stated by Eskerod and Larsen, (2018) is a process of
identifying all those people who affect and get affected by the Tesco. Later this
process of stakeholder analysis involves grouping these people on the basis of
their level of participation in Tesco. This grouping also involves characteristics
like interest and influence of the people on organisation. This is later followed by
the process of determining level and ways in which stakeholders can be involved
in the organisation. The stakeholder analysis by organisation is done in order to
ensure effective engagement of stakeholders within the organisation. This is done
with the purpose to enlist the help of key players of Tesco in Tesco’s operations.
Stakeholders Analysis and Engagement

In order to do this Stakeholder Analysis Matrix can be utilised by the
company. The stakeholder analysis matrix is based on power and
interest of the stakeholders within Tesco. The matrix is as follows-
Cont..

According to Bellucci and et.al., 2019 stakeholder engagement can be defined as
a process through which organisation involves people in organisation who affect
and get affected by the organisation.
In its engagement of stakeholders Tesco considers that engaging and
collaborating with stakeholders help Tesco to understand their evolving
priorities and address most relevant sustainability issues. Tesco considers that
stakeholder engagement helps them in sharing their learning with each other and
this is the reason that Tesco is committed to listen to all stakeholders groups.
Stakeholders Engagement

 Stakeholders of the company have been divided in two
parts that are known as internal and external stakeholders.
Internal stakeholders are those who influence organisation
and operate in function within the organisation. External
stakeholders are those who influence decisions of the
organisation but do not function within the organisation.
Analysis of Relationship and Influence of Internal
and External shareholders on Tesco

There is a strong relationship between internal and external stakeholders of the company
in which successful operations of the company ensure that external stakeholders are
getting positive and favourable impact. This relationship and influence of external
stakeholders affect functioning of the organisation. For example, relationship between
internal stakeholder’s employees and external stakeholders customers is that effective
performance and output produced by employees will provide value to customers.
Similarly supplies on time by external stakeholder supplier will help in employee’s
productivity and performance within organisation. the relationship in external and internal
stakeholders is not the one internal and internal stakeholders also get influenced by each
other.
Cont..

 One of the most important stakeholder for Tesco is wider society and this
stakeholder of the Tesco gets affect all internal stakeholder because wider
society as a stakeholder involves government and regulatory bodies. Their
rules and regulations have direct impact on the internal stakeholders that
are employees and shareholders. This also includes trade bodies and
several NGO and their impact is over all internal stakeholders of the Tesco.
Decisions and their implementation can be affected by its external
stakeholders.
Cont..

On the basis of above discussion it can be concluded that stakeholders
have a significant impact on the Tesco. Stakeholders’ analysis can
help in identifying impact of each of the stakeholders of the company.
On the basis of discussion it can be recommended that Tesco should
identify impact and influence of stakeholders on each other. This will
reduce conflict and will also improve their relationship and
collaboration. Through collaboration of stakeholders company will be
able to experience enhanced productivity.
CONCLUSION

 Eskerod, P. and Larsen, T., 2018. Advancing project stakeholder analysis by the concept
‘shadows of the context’. International Journal of Project Management. 36(1). pp.161-169.
 Bellucci, M and et.al., 2019. Stakeholder engagement and dialogic accounting. Accounting,
Auditing & Accountability Journal.
 Sedliacikova, M and et.al., 2017. How the internal stakeholders perceive the implementation
of controlling. Ekonomicko-manazerske spectrum. 11(2). pp.32-44.
 Chan, A.P. and Oppong, G.D., 2017. Managing the expectations of external stakeholders in
construction projects. Engineering, construction and architectural management.
 Marques, P and et.al., 2019. Corporate social responsibility in a local subsidiary: internal and
external stakeholders’ power. EuroMed Journal of Business.
REFERENCES