Introduction to Business Studies Assignment
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Stakeholders are a group of individual whose decision has importance in an organization. Stakeholders of a business organization include internal and external customers. Managers, employees, executive members are the major internal stakeholders. And, customers, suppliers, government, non-government organizations, and regulatory bodies are the external stakeholders. Stakeholders have a very crucial and significant role in an organization, for example, different stakeholders in Tesco, a retailing company, have a huge role in the organizational operations (Ometto, 2021).
Employees are the most important stakeholders of Tesco as they are the asset of the company. Their work, innovative ideas, hard work, and active participation in the organization help the company achieve goals and generate revenue.
The managers are also an important part of the organizational task. Managers try to manage the organizational operations by developing strategies and planning that are crucial for attaining the organizational objectives. The human resource managers of Tesco implement effective training, educational programs for the skill development of the employees. They also implement effective perks, remuneration, incentives, and rewards for increasing the motivation of the employees and encouraging them to work for attaining the goals of the organization. Managers of Tesco also make necessary decisions that are important and even make a crucial decision in any crisis to tackle the situation and make the organization attain the goals. Supply chain management, product development, employee retention, customer retention, marketing management all these activities are all the most predominant areas of the managers (Kaynak et al., 2018).
Chairman, executive members, and board members
The chairman, executive members, and board members make strategies that are very significant, and depending on the strategies the entire organizational operations are performed. They are the head of the management of the organization.
The external stakeholders of Tesco have also a powerful contribution to the organizational tasks and operations.
The primary external stakeholders of Tesco are customers because depending on the needs and requirements of the customers, all the organizational activities are set to be performed. Customers of Tesco contribute to a large extent to the organization's profit and turnover by buying or purchasing products. Depending on their tastes, preferences, needs, and demands, the products are developed. Depending on the buying experience of the customers, the marketers of Tesco build marketing strategies to attract customers and increase brand value. The quality of the products is also improved as per the feedback of the customers regarding the products (Chaudhuri, 2020).
Suppliers of Tesco supply the products and services to the company. They make the decision for raising or lowering the prices of the products. The reliability of the suppliers can also impact the production and manufacturing of the products. Tesco builds a robust connection with the suppliers for long-term partnerships to maintain a good and liable supply of products and services to the customers (Severgnini, 2018)
Depending on the rules and regulations of the governed, changes in the tax rate, and other government policies, Tesco needs to make decisions for organizational growth and development (Moraes, 2018).
Competitors influence Tesco by making them develop unique and different products and services. For increasing competition in the marketplace, Tesco managers also try to increase brand value, and customer satisfaction, and loyalty (Severgnini, 2018).
The primary sector includes the production sector that extracts or product raw materials. This sector includes fishing, farming, mining, fishing, etc. the primary sector occupies a large portion of the economy. And also primary sector is the base of all other sectors (Kah, 2018).
The secondary sector includes the manufacturing sector that uses the raw material of the primary sector. Mainly the role of manufacturing is played by this sector. The secondary sector of the UK includes the industries that manufacture a completely finished product. This sector is associated with the activities of construction. Mainly the products or raw materials of the primary sector are used by this sector (Schafram et al., 2018).
The tertiary sector includes the activities that are associated with the commercial, financial, transport, social work, personal or business services, education, and health work (Tanase, 2019)
Impact of these sectors
These three sectors are inter-connected to one another. For example, a farming company in the UK, Open field Group produces raw materials, and these raw materials are used by the manufacturing companies of the UK. And these manufactured products are sold and supplied by the service providing companies of UK. Open field Groups is the largest agricultural company in the UK and produces agricultural products and goods. The manufacturing companies like Unilever use these raw materials for manufacturing food products, personal care products. And then the manufactured food, household and personal care products need to be sold, supplied, and reached to the customers. And for these activities, Unilever depends on the tertiary sector. For the financial and commercial sectors, the company depends on the finance companies like HSBC. For transporting and supplying the products of the company, the company has to depend on the tertiary sector or the commercial, transportation, and logistics service providing companies (McDonald et al., 2018).
The external factors
The business organization has to obey the government rules and regulations for maintaining business operations. The government rules change at all levels. The tax rates, government policies, and schemes change and the organization needs to maintain all the changes as per the needs and requirements. The political factors directly or indirectly impact the organization. The increase or decrease in tax rates can impact organizational activities. For example, Tesco needs to follow the government policies and regulations for operating its business operations. The various factors associated with the organizational operations include trade law, corruption, data protection law, environment law, health, and safety law, intellectual property law, consumer protection law, etc. (Rozsa, et al, 2019). These laws can impact the business organization to change its current activities and operations. When the political stability is unstable, the business organization is greatly affected. Due to the changes in the environment protection law, the company also focuses on implementing effective changes in product development. For the changes in the employment law, the company needs to make effective rules in the organization for employee management. As per the government policies, the company also needs to maintain anti-discrimination among the employees. The safety and health of the employees also need to be maintained as per the government rules and regulations.
The social factors have also a very significant impact on the business organization. Tesco needs to maintain the buying and purchasing behavior of the customers and depending on the changes in the taste preferences, the company needs to develop products and services. As per the change in terms of age, religion, gender, and demographic are, Tesco needs to maintain effective marketing strategies for the organizational functions. Social factors mainly impact the demand and supply chain of the organizations. From maintaining customer retention, Tesco has to maintain the needs and requirements of people from different interests, tastes, and preferences. Thereby, the social factors influence the organizational operations. Different religious people also have different demands of the products, depending on the demands of the customers of different backgrounds, Tesco implements effective product development strategies for supply (Chatterjee, 2020).
Economic factors are also significant for organizational operations. As per the inflation rates, tax rates, exchange rates, interest rates, unemployment rate, and economic growth and development of a country, Tesco changes the organizational activities and operations. As per the economic development, growth rate, GDP and tax rates, recession, Tesco fixes the price of the products and services by analyzing the GDP rate. Depending on the economic growth of the country and the per capita income of the citizens, Tesco changes its organizational operations. When the labor charges change, Tesco also changes the labor costs. Due to changes in the tax rates, Tesco needs to maintain the costs of the products as per the changes in the buying behavior and interests of the customers so that the company can maintain the satisfaction of the customers. The employment rate is also impacted by the company as per the changes in the employment low which is also another crucial economic impact on the organization (Zvarikova and Kacerauskas, 2017).
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