P2. Oxfam 1 PDF

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P2. Explain how two contrasting business are influenced by its stakeholders. Stakeholder and their influence In this task I will be exploring the different types of stakeholder between the two categories which as Internal and External and how they affect my chosen businesses; Tesco and Oxfam. I will also explain the influence that each stakeholder has on the business’s success. Oxfam A stakeholder is a person or a group of people that have an interest in the success and running of a business. There are two types of stakeholders, internal and external. Internal stakeholders are those within the business including employees, external stakeholders include anyone outside of the business that has an interest, this could include customers. There are two key stakeholders within a business. These are external and internal stakeholders. Internal stakeholders are people within a business (e.g., employees,

managers, the board of directors, investors). Employees want to earn money and stay employed. Owners are interested in maximizing the profit the business makes. Investors are concerned about earning income from their investment. Whereas as external stakeholders are people not within a business itself but who care about or are affected by its performance (e.g., consumers, regulators, investors, suppliers). The government wants the business to pay taxes, employ more people, follow laws, and truthfully report its financial conditions. Customers want the business to provide high-quality goods or services at low cost. Suppliers want the business to continue to purchase from them. Creditors want to be repaid on time and in full. The community wants the business to contribute positively to its local environment and population.

Stakeholder Group (Including whether it is internal(I) or external(E)

Definition

What is there main objective

Interest in the PLC (What do they want from the PLC Explain why each of these stakeholders has an interest in the business.

Founder (I)

The entrepreneur who started a business or organization.

An entrepreneur would want the charity to have a long chances of survival and they will achieve this by spreading awareness of the charities and its purpose through advertising however

One of the main interests is that having a share within a company like Tesco PLC is secure because it is considered to be successful and gives out better dividends. Some shareholders may specifically be interested in Tesco because they are Page | 1

Trustees (I)

Charity trustees are the people who share ultimate responsibility for governing a charity and directing how it is managed and run.

Board of Directors

A board of directors is a group of people who jointly supervise the activities of an organization, such as a non-profit organisation, e.g Oxfam

Employees (I)

The definition of an employee is one who works for someone else or a company in exchange for wages. They work under a contract of employment and has standard rights and duties. An example of employee is an individual who is

this will come through an expense. So their financial objective would be trying to generate income through several ways such as cooperate sponsorships, and donors. The money generated would be used to invest in new supplies, materials , projects. However, the entrepreneur does have non-financial objectives for e.g trying to ensure that Oxfam sticks to its beliefs that they stand for and that they continue to work towards it mission. Also, that they continue to represents the business’s values.

experts in this type of industry, meaning that they can use their expertise to help benefit Tesco in succeeding as the ‘leading retailer’ globally, this would also benefit the shareholder because they get a share of the profits made. Another factor as to why shareholders are interested is because Tesco has limited liability which therefore means they have to give back all their shares they have invested however limited liability protects the shareholders personal assets

To manage the store and make sure that it is operating efficiently and that customers are working proficiently.

They want to have a good reputation within the store and to make Tesco successful through its employees.

The main objective for employees is to make sure they achieve the set tasks from manager by the end of the day. To make sure they are ensuring the best customer service to their customers.

Employees interest in Oxfam is that they want to be given an adequate pay and for their opinions to be heard. This usually hsppens during their Annual General Meetting where they are able to voice any concerns or any useful suggestions for the businessThe employees may also be interested in Oxfam Page | 2

employed by Tesco and is paid a certain amount of money for each hour worked.

because of its purpose aa a business and that it is a well established charity that has helped several people worldwide, which may attract potential employees , because they would be proud to work and represent a charity such as Oxfam. Also another reason why they may be interested in working for Oxfam is because there values are compatible and similar to their own and they feel that that they would fit will working for Oxfam.

Volunteers (I)

Volunteering is generally considered an altruistic activity where an individual or group provides services for no financial or social gain "to benefit another person, , group or organization or to work towards a cause and a social change".

Inidividuals may be interested because it may br that there vocation is to regularly participate in philanthropic work. This could be done trough volunteering in projects, volunteering overseas in shops etc. Another reason why individual may be interested in volunteering in Oxfam is because of personal benefits such as connecting to others, where the can wor towards a shared goal and really unite the community. Another reason why individuals may volunteer is because they are working with people that have a common interest and shared value and because they want to make an impact in low-deprived areas and a sociological change such as gender stereotyping.

Mangers (I)

The definition of a Manager is a person who is in charge of a certain group of tasks and delegate these task to their subordinates (Employees).

To ensure that goods are delivered to Tesco on time. To build long-term relationships with Tesco. To ensure that deliveries are

Tesco succeeding allows them to have a positive long-term and secure buyer, this allows them to sell in bulk for a longer period of time which means more income and success for them. Page | 3

delivered on time.

Donors (I):

An individual, group or organization who gives a gift or transfers an asset without receiving any consideration in exchange.

Suppliers (E)

The definition of a supplier is a person or organisation that is the source for goods or services.

Suppliers want stable orders and quick payments and to be represented by a company with high trustworthiness. Donors may be interested in a charity such as Oxfam because they sympathize with what they are trying to work towards for ,so they may contribute materials such as clothes, food or money. They are interested in the growth and success of Oxfam, they want to support Oxfam’s projects and mission. In return of their donations , many donors want transparency in return , to share with public citizens where money etc is being distrubited to and whether it is being used efficiently. A report predicted 1 ‘a further £665m in UK donations if charities were more transparent.’

To out-compete their competitors. To gain a larger market share and a higher recognition. To attract new customers frequently. To be the leading supermarket in the retailer industry.

Competitors such as Sainsburys or Marks and Spencer’s would be interested in Tesco but not entirely in their success. They are interested in Tesco business activities, for e.g. looking at the most sales from a specific product and copying them, or by looking a there pricing strategies, which will enable them to offer competitive pricing. Competitor may possibly be interested in Tesco’s success because it can help a competitor look for a gap in the market, a business opportunity, something that is unique (USP) which will increase added value and most likely defeat Tesco and make them lose their repeat customers.

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People they help and customers (E)

Charities often help vulnerable people but this is based on the personal characteristics to a focus instead on the circumstances that make an individual vulnerable and the support required. For example: Children, pregnant women, elderly people, malnourished people, and people who are ill or immunocompromised, are particularly vulnerable when a disaster strikes, and take a relatively high share of the disease burden associated with emergencies. Poverty – and its common consequences such as malnutrition, homelessness, displacd people, poor housing and destitution – is a major contributor to vulnerability.

To receive a good service from Tesco To build a relationship and loyalty with Tesco To be satisfied with their service and their product

The customer interest in Tesco is to see improvements constantly made so they have a good experience when shopping at Tesco. that give them better goods and services which are value for their money. They want a good value of money meaning that the quality of the products balance with the price, and they also expect innovative products sold at the price it matches, mainly low costs and a great experience each time they purchase from Tesco.

Government Agencies and Departments( E)

A government department is a sector of the UK government that deals with a particular area of interest.

To ensure all business registered through ‘Companies House’ are paying taxes such as Corporation Tax to the government. To ensure all employees are paying Income Tax

The government are interested in the success of Tesco PLC because the more profit they make, the more the business the taxes they must pay. Also, they are interested in business because the taxes paid to the government support education, police and fire protection. Also, they would be interested because it creates jobs for people, therefore lowering unemployment rate, and generating money into the economy.

A government or state agency, sometimes an appointed commission, is a permanent or semipermanent organizati on in the machinery of government that is responsible for the oversight and administration of specific functions Department of health

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and human services. ... Department of homeland security. ... Department of justice. Communities (E)

Local Community: A local community consists of individuals who may share the same beliefs, culture and values and are considered as a unit because of their common interests, social group and nationality. For e.g. a large pro-labour constituency such as Tooting.

Local community (LC): they main objective is to be satisfied with their experience and service. To build loyalty with Tesco.:

LC: They are interested in the success of Tesco as it will give them an opportunity to create jobs for people living locally. They are interested because they can also access, he Tesco website online, if they plan to order in bulk for an event, and even through there catering orders etc.

Coalition and alliances (E)

In international relation, alliance is a formal agreement between countries for mutual support e.g. in case of a war and is which is formalized by a treaty of alliance. A Coalition is known as the joining together of groups to temporarily work for a particular purpose to achieve a goal. For e.g. People and political parties. Coalition and Alliances are linked because they are a form of goal-oriented cooperation and although they both have distinctive interest and identity, the purpose of collaboration across both of them are the same, which are to achieve a shared goal that none could achieve individually.

To ensure that Tesco is not abusing employer’s right. To ensure that the working conditions are good for employees to work at

Trade Union are interested in the groups of employees within Tesco. There main interest that trade unions have in Tesco are for them to push for higher wages and good working conditions for their employees.

Non-

They are a voluntary Page | 6

Government Organisation (e)

group of individuals or organizations that are not associated with any government and is formed to provide services and to advocate a public policy.

Charity Partners (Cooperate Sponsors) (E):

Corporate sponsorship is known as the financial backing of a charity, public-interest group or project, as a means of enhancing its corporate image.

Stakeholder Group (Including whether it is internal(I) or external(E)

Influence over the PLC (How much power do they have over the PLC

Example of how they have influenced the PLC (from Research

Shareholder (I)

Shareholders have direct influence on a business for example they have voting rights on major corporate decisions. Tesco holds an annual meeting where shareholders can voice concerns and feedback. Advanced shareholders who own large amounts of stock may voice concerns publicly in an effort to sway company decisions. Shareholders therefore can have a degree of power depending on the shares they own in in the business and can suggest actions to be taken by the organisation.

E.g.: Shareholders vote on election of board members. In the Annual General Meeting.

Managers (I)

They are slightly influential because the work done by actual workers should be a reflection of good management by the managers. This makes the

They influence the Tesco because they decide who to employ in the business and who would be the best candidate fit for the job.

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manager responsible for the type of service they provide to its customers, whether good or bad. Employees (I)

The more efficient and effective the employees work, the higher chance that Tesco will succeed overall. They have a great impact on Tesco. However, if Tesco PLC were to collapse this would threaten their jobs, or lower their wages, so both parties are influential.

They influence the result of customer satisfaction and sales, because if they have a low work ethic or enthusiasm when committing to their job, then it would just lead to a low outcome such a decline in repeat consumers. .

Suppliers (E)

Their goods have to be a high quality (depending on price) for customer demand to continue or increase and for customer loyalty. They are influential because if the quality drops that will have to be reflected on price, or if they deliver late that will affect the brands reputation, this will just lead to loss of income and having to look for a new supplier will be difficult because they will have to rebuild trust.

They influence the amount of stock levels the company has because Tesco depends on the stock from their supplier to allow them to anticipate and meet customer demands. Therefore, if deliveries are late, or the quality of goods they receive are poor, this would then go again their aim as a business and lose a lot of customers resulting to less sales. Evidence from a report stated that their former supplier Silver Crest, ABC Food Group supplied horse meat which created a massive scandal and a lot of negative outcomes for e.g. it created a bad publicity and failed to meet their aims and mission as a business because there frozen ‘everyday value beef burgers contained 29% horse meat. This scandal resulted to ‘£300 million off the Tesco’s Market Value, and therefore affected the shares down by 1%’.

Competitors (E)

Competitors who have a

By looking at competitor’s Page | 8

Customers (E)

powerful brand in the retailer industry can influence its competitors such as M&S because it has been long established and is a mass market. However, evidence shows that Tesco has actually influenced other competitors because they were the first to introduce self-service checkouts, this development of innovation can help increase sales and out beat their competitors such as Morrisons.

current activities for e.g. there pricing strategies, what product is popular in their shop such as Sainsburys and comparing it to Tesco, this can influence Tesco to use competitive pricing and reduce their prices so that they can out-compete their competitors successfully.

Customers tend to be the most influential stakeholder as they determine the income Tesco makes. They are influential because the actions that Tesco make can affect them, the local communities’ main interest in Tesco is for them to give back to the environment, for e.g. new computer to local schools or jobs for people living in the community. Tesco must understand and meet customer needs otherwise they will fail to develop customer loyalty, they might be losing customers to rivals such Sainsburys, also losing sales The influence of a customer is really important because without them the business cannot operate.

In a way customer influence Tesco through market trends or current trends, they influence what Tesco wants to order more stock for and put on shelves. In addition to this, is that Tesco is very customer-focused, so they must offer goods and services that customers demand. Another way that customer’s influence Tesco is by the income that each customer has, by Tesco looking at the sales activity on different prices from low to high at the most sold at different price ranges. Tesco has introduced their own brand such as ‘Tesco Finest’ which would mainly appeal to customer with a higher income. This would influence these types of customer to purchase higher quality goods, but a high cost that they have to pay and would continue to generate a lot of revenue because Tesco

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is trying to appeal to different people with different financial circumstance’s through their own brands such as Tesco Value and Tesco Finest. Government Agencies and Departments(E)

The government are one of the least influential because if the business fails then workers are made unemployed and as a result may go and ask for government unemployment benefits such as Jobseekers Allowance. Tax paid to government, used to provide an income to unemployed people, is something the government generally don’t want as the money could be spent elsewhere such as the NHS or the Department of Education.

An example of how the government influences business Is how they give grants to new opening businesses because it will help decrease unemployment rates and create more jobs for their local community. Government agencies can also affect business because they can always change taxation policy whenever they want, meaning that will affect the way Tesco would operate. Another way government has changed policy is that for certain jobs there needs to be a minimum age of 18 and above Another way Government can influence business such as Tesco who are always looking to expand their premises and undertake new ventures, the government can however restrict where business can build new premises.

Communities (E)

The Local Community can=an influence Tesco, because Tesco will have to loo...