Unit 1 P2

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Unit 1 P2 P2: Describe the different stakeholders who influence the purpose of two contrasting businesses. Introduction In this essay I will be describing the importance of stakeholders in order and how they influence Tesco and Havering Sixth Form College. Stakeholders are people who have an interest or concern in a business. Examples of stakeholder are owners, customers, employees, government, suppliers, trade unions and the local/national community. Stakeholders come in ranks of importance depending on what the business is, and this is what I will be talking about in my essay. Tesco Customers Customers are really important to business like Tesco as they are the people who will be purchasing their products and generating the income for the business. The customers will want to make sure that they are buying a quality product at a reasonable price. Customers can be play a key part in the way Tesco makes decisions, this is because if customers don’t like a certain product then Tesco will have to decide to remove the product for the shelves. If customers are not happy with a product then they will report it to Tesco and Tesco will have to take action to do something about it. Tesco will aim to make customers happy so they can gain their loyalty as this will increase their profit margins. The reason Customers are so important is because without them Tesco will cease to exist because there will be no people buying their product which means no income which equals to no profit. A business like Tesco revolves around the customers as they are always trying to satisfy the customers demand. Owners Tesco is Public Limited Company (PLC) which means that it’s owned by people who have bought shares in the business, these people are known as shareholders. Shareholders depending on how large their stake in the business is will have an influence on the decisions being made

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