The Importance of People in Business

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Recommended: Stakeholder analysis

The Importance of People in Business

Task

----

To produce a report based on the investigation of a medium/large sized

business showing an understanding of the importance of people in

Business.

The following report will analyse the influence of stakeholders on a

business as well as how the business affects stakeholders and the

conflict of interest between the two.

Who are Stakeholders?

---------------------

Stakeholders are defined as "individuals or organizations who stand to

gain or lose from the success or failure of a business" (Nuseibeh &

Easterbrook, 2000).

In terms of a business, this can include employees, suppliers,

shareholders, financiers, the public and most importantly the

customer. By definition, stakeholders are those who are impacted by

(or have an impact on) a business and their perspectives need to be

taken into account in order for a business to be successful.

Stakeholders can have positive or negative views and often don't agree

with one another, making it a challenge juggle their varied

viewpoints.

Case Study - Tesco Plc

Tesco is a well-known international company established in 1924. Over

recent years it has expanded past other food-only retailers to deal in

home products, electrical goods and clothing amongst other non-food

items.

The company currently owns 6% of the non-food market in its division.

They also deal in banking, insurance and other financial services. It

currently has 1887 outlets in the U.K., which come in many different

varieties to cater for everyone's needs; they are metro (161), express

(277), superstore (447) and extras (83).

Below are two ...

... middle of paper ...

... A business will also be affected by its ex-employees. The way

ex-employees portrait the business once they have left may affect

future recruitment and the company's ability to attract new staff as

well as the general publics opinion of the business.

Ex-employees are external stakeholders.

Conclusion:

In my opinion it is important for a business to undertake stakeholder

analysis and prioritise stakeholders dependant upon their influence

and interest in the business. Once this has been done it is important

to plan for any potential conflicts that may arise and look to resolve

them by compromising and negotiating until a sensible solution is

reached.

In the case of Tesco it is important to meet the objectives of the

Shareholders and financial links without upsetting the general public

and pressure groups.

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