Different Stakeholders free essay sample

Stakeholder is a person or groups who have interest in the success of the organization. A stakeholder is mainly concerned with an organization delivering better results and meeting its financial objectives. There are two types of stakeholder. 1. Internal Stakeholder 2. External Stakeholder Internal Stakeholder:- Internal Stakeholder is someone who works inside the organization or anyone within the organization that will benefit from the company’s profits. For example:- * Employees Employees are one of the biggest stakeholders for any organization. As they have a main role in the company, they are interested in their job security; they don’t want to lose their every day . They want their jobs to be safe. They also want safe environment where they are working. Tesco runs many surveys making sure that the area is safe for its employees to work. Employees are also interested in wages they will get for working. Will they get monthly or per hour salary? They also want to know that they will get bonuses for their hard work. Tesco gives up to 20% of the annual bonuses to the employees. Employees are also interested in Pension schemes the business will provide. Is it a state pension or work pension? Tesco provides both of the pensions to its employees. In both Tesco and Oxfam, all the needs of the employees are met, so that the employees work more efficiently within the company, for Tesco it will increase the standard of its services increasing its profit. For Oxfam it will increase its standard of working, increasing the funds raised for poor people. * Owners Owner always wants the business to make profits. In Tesco, owner wants it to make profit. Tesco owner wants to expand as much as possible to be able to meet more customers’ need and making more profit. In Oxfam, owner wants to raise more money for the poor people and expenses of running a charity. Owners also want to theirs employees to meet the new targets and needs of the customers. Owners also interested in the relationship between the employees and the customers, those employees are treating the customers good and formally. In Tesco, if the owners expand the business, it will be able to serve more customers which mean more profit, decreasing the prices of the product. If the owner of the Oxfam expands the business, it will be able to raise more donations for the poor people. Owners always come up with new ideas to satisfy the needs of the customers. * Managers Managers are the spinal cord of the business. They keep the business running. Mainly, they are interested in the business growth and the profit it is making. They keep an eye on the outgoing and incoming of money and work out the profit. In Oxfam, Managers work out the profit made from the donations, so they can be used for the welfare of the poor people. Managers are also interested in how the staff operates. They make sure that the employees are working properly, knows the security formalities, they are the customers right. In Tesco, managers run many surveys and drills to see the staff is working properly under controlled conditions. Managers are interested in costumer opinions, what they think about the services and what they want more. Managers are also interested in the wages of the employees that they getting the right amount wages. Oxfam manager needs to know who is working on salary and who is working voluntary. Manager is also interested in running campaigns and surveys for the welfare of the company. Tesco manager can run surveys to check the products quality for the customers. Oxfam managers can organize campaign to promote them and raise funds. External Stakeholder * Customers : Customers are essentials for any business because they increase the profit of the business. They buy products and services from the Companies increasing their profit. Customers are mainly interested in the quality of products they will get. Tesco and Oxfam have many rules and regulations to keep the products safe and up to standard. Customers are also interested in the growth of the company. If Tesco grows in size, it will buy and sell the products for cheaper which is good for customers. Customers are also interested in other services that a company provides, like Tesco provides credit card and insurance as well. Oxfam also provides online shopping option. Customers also want good costumer services as well from the companies. * Local Community Local community is the people that live in the area where the business operates from. Local community is a very important stakeholder of any business. Local community is interested in any business for many reasons. It is interested in Jobs provided by the business. Is the employment level went up or low because this business. Tesco may increase the level of employment. What effects the businesses have around the area? People also want peace in their area as well, so they are interested in the traffic produce by the business. They are also interested in the effects on the house prices. Is it gone up or low because of the business? Some people may want Tesco next door. But some prefer quiet neighborhood so they want Tesco to be next door. So the business affects the houses prices a lot. Some people may want Oxfam to be in their community, so they donate the money and products easily. * Trade Union Trade Union is a union of employee and labors which represents them in matters of wages, working conditions and everything that is related to the employee. They are mainly interested in employees of the companies and their problems. They sort out any problem of the employee. If the employee is getting fewer wages and is the member of trade union, Trade unions will negotiate with the employer and sort the wages problem. Just like this, Trade union is also interested in the working conditions for the employee. Is the environment is acceptable to work in by employees at? Are they getting good working hours? Are they getting the right equipment? These are all the things in company that trade union is interested in. Tesco was reviewed by trade union UK to see all the requirements of the employees are been met. * Government Government doesn’t get Involve Private sector companies but there are some things that government is still interested in them. The first thing is Tax that the government will get from the company, this is called cooperation tax. The government is interested in it as are they getting the right amount of Tax or not. Oxfam gets Tax relief because it’s a Charity and is there for a good cause. Government is also interested in the wellbeing of the staff. Government keeps an eye on the shares as well for the Public limited Company to keep up the competition in the market. If Tesco Owns too much shares of the market, it will increase the prices of its products. The last thing that government is interested in is jobs opportunity that the company is providing. Oxfam provides voluntary jobs to raise money for poor people. * Suppliers Suppliers supply all the products to a company, so it is mainly interested in the growth and success of the company. If Tesco earns more money, it will buy more products from the suppliers increasing its profit. Supplier in also interested in the prices of the products, he wants the company to buy the supplies for more money. Tesco Suppliers are all around the world providing Tesco cheap and high quality products. There is no supplier for Oxfam as it is a charity. Conflicts There can many conflicts within the stakeholders of the company. Employees can have conflicts with the Owner. Owner may want more profit from the company and less wage for the employees. But employees may want more wages and bonuses. That’s why there is trade union to sort this out. The employees may need holidays or other benefits like maternity leave which can affect the profits of the owner. In Oxfam, this problem is not that prominent than that in Tesco because most employees in Oxfam are volunteer. Employees can have conflicts on expanding the business because of different opinions. In both Tesco and Oxfam. Because of these conflicts, the employees can go on strike against the owner and don’t work which can greatly affect the profits of the owner. Owner can fire someone and appoint a new employee. There are always conflicts between Local community and Owner. The owner of Tesco may want to expand the business by building more shops as possible. Local community can go against it because of the construction problems and construction noise or they don’t want that shop to expand. So the owner needs the permission of the council and local community before starting the construction which can cost them money and time. In Oxfam, the owner want to collect as much money as possible from the people, for this they may organize may fundraise events which can be disturbing to local community. Owners and Suppliers can have conflicts between them. Suppliers may want to supply the products to Tesco on higher price but Tesco wants the goods’ prices to be low so they can make more profit. In case supplier is not satisfied with dealing with Tesco. They can cancel the contract and join any other companies which can a great loss in profit and time as well. In Oxfam don’t have that much problem with supplier because the products they get are donated by people, but the people stop donating their old stuff to people, it can cause great problems for Oxfam in raising money. Trade unions can have many conflicts with owner. Trade union represents employees in matter of wages, benefits and working conditions. Trade union may demand for higher wages and better working conditions for the employees from the Tesco Company. Owner can see it as unnecessary expenses and if Tesco refuses to full fill the demands trade union ca start a strike with the Tesco employees, which can cause great damage o the profit of the owner. In Oxfam, most of the people are volunteer due to which these problems don’t rise as much as it does in Tesco. Suppliers can create a lot of problems for the local community. As the Tesco is big company , it needs more products than a normal shop , so the suppliers have supply the goods as soon as possible to keep up , This means a lot lorries and traffic which can build up many problems for the local community who wants peace and quiet in their area. In Oxfam, it’s the same problem with donations made by people all around the world but it is much low than the Tesco one. Trade union and government also have many conflicts. Trade union wants Tesco to give higher wages to employees striking causing the Tesco loss the profit, which can affect the amount of tax they have to give to government. The government wants the Tesco to work smoothly, earning profit and paying taxes. In Oxfam, there is trade union to act, because most of the people work voluntary.