A further analysis of the influence that stakeholders have on Tesco including Mendelow's Matrix.

1. Unit 1 D1
Lewis Appleton Miss Johnston
Influence of Stakeholders
Diagram
Keep Satisfied
Government
Key Players
Staff
Suppliers
Owners/Shareholders
Trade unions
Minimal Effort Keep Interested
Customers
Communities
Tesco
Customers onthe influence of stakeholdersdiagramare inthe keepinterestedsection.Theyputina
highlevel of interestintothe businessbecausetheyare interestedingettingprovidedaservice or
productfrom the businessbut,theyhave alow level of influence onbusinessbecausetheyare not
tryingto make a change theyare justinterestedinpurchasingthe product. Forexamplecustomers
may go intoa store to purchase the usual productstheyneedina week,theyare nottryingto
change the businessinany waybut theyare tryingto getthe suppliestheyneed. The customersare
interestedinthe pricesthatare seton the productsand the qualityof the products.
Staff are at differentsectionsonthe diagram, there are some staff suchas cleaningstaff thatwould
have a lowinfluence andlowinterestonthe businesswhichiscalledminimal effort.Thereare staff
such as customerservice whichwillhave ahighlevel of influence andalow level of interestwhichis
calledkeepsatisfied,andthere are also are also technical staff thatwouldbe keyplayersbecause
theyhave highinterestandhighinfluence. Differentstaff have differentlevelsof interest because of
whattheywant to achieve fromthe business andinfluence becauseof the worktheyhave todo; the
staff that have to do a higherjobpositionwill be tryingtoinfluence the businessandtheyhave a
highinterestbecause itismakingachange. Most of the staff will generallybe keyplayersbecause
theyare whatmake the businesswhatitis.
Suppliershave ahighinfluence onthe businessandahighinterestbecause theyare tryingtogeta
profitfromthe businessbyprovidingthemwithsuppliesandtheyinfluence the businessbecause
the businesswouldnotbe able tooperate withoutthe supplies.The suppliersare keyplayersforthe
businessonthe influence of stakeholder’sdiagram. The suppliersalsowantregularordersfromthe
businessbecause theywanttomake profit.Withoutthe suppliesthe businesswill sufferalarge
decrease in sales.
LevelofInfluence
Level of Interest

2. Unit 1 D1
Lewis Appleton Miss Johnston
Shareholders have ahighinterestinthe businessbutalow influence,thisisbecause theyare only
investingtoexpectaprofitwhentheirinvestmentpaysoff,andtheywantahighreturn ondividends
to secure the real value of the investment.Shareholders have ahighinfluence because theyare
tryingto change the business forbetter,buttheyare also tryingto make a potential profitfromthe
business.
Owners are keyplayersinthe business;theyhave averyhighlevel of interestandinfluence.They
are the people whohave tofundthe businessandmake all the decisions.The reasontheyhave a
highinterestisbecause theywanttheirbusinesstosucceedandtomake themwealthybyprofits,
theyalsohave a highinterestingivingthe business agoodname to the public.Ownershave ahigh
influencebecause theyare whomake all the changestothe businessandwantthe businessto
become globallyrecognisedsotheycanmake highprofits,the businessisownedbyshareholders.
Communities have ahighlevel of interestandalow level of influence,theyare interested inthe
businessprovidingaservice tothe communitysuchascustomers,andtheyare alsointerestedinthe
businessbecause theydonotwantitto upsetthe community’sviews.Forexample if the business
makesa store and has to cut downmanytreesto do so,it meansthatsome of the communitymay
become upsetwiththe business.The communityhave alow level of influence onthe business
because theyare not tryingto make anychanges for it. The communityalsowantsjobstobe
providedfromthe business.
Governmenthave alowlevel of interestinthe businessbecause theyare nottryingtogetany
productsor servicesoutof it, buttheyare tryingto influence ittoprogressbecause itwill create
more jobopportunitiesandtaxes,therefore theywill make more moneybyinfluencingthe business.
The governmenttryto helpthe businessbyhelpingitexpandwhichmaygoagainstthe public’s
views.The governmentare onthe keepsatisfied sectionof the stakeholderinfluence diagram.
Trade unions have ahighinterestinthe businessandahighinfluence;theywantthe businessto
become successful andtosupplyworkerswithgoodjobs.Theyare interestedinthe business
because theywantthe staff to have betterworkingconditionsandtheyalsowantthe staff to have
betterjobpositions.Theyare ahighinfluence onthe businessbecausetheywanttochange the
businesssoitmakesthe staff have betterconditionstodotheirworkin.
The Scenario
Stakeholder viewpoints
ManagingDirector ofTesco
The managingdirectorof Tesco isinterestedinmakingsure theirstore isopenedassoonas theyare
able to,thisstakeholderisonlyinterestedindevelopingtheirbrandname intothe retail market.
Theyare not concernedaboutthe local community’sviewsonopeninganew store butthey
obviouslywill notshowthistothe public.The managingdirectoristryingtoexpandtheirnumberof
storesto try and make a much fasterandlargeramount of profit.Theywill see openinganew store
as a benefittoeveryone,althoughsomeof the local communitymayhave disputesagainstthis.

3. Unit 1 D1
Lewis Appleton Miss Johnston
Head teacher ofLocal High School
The head teacherof a local school wouldhave highconcernsof the new store openingbecause it
will cause higherlevelsof trafficandcanpollute the areaaroundthe school.There will be an
increase inmanydeliveryvehiclespassingthe school aswell asanincrease inthe amountof cars
aroundthe school.There are alsothe concernsof the studentsattendingthe school startingtohang
aroundthe store whichcan bringbad publicitytothe school.
CommunityWardenwhohas a keen interest inlocal history
The communitywardenwantsthe oldprintingfactorytostay there because of the history ithas,
theywouldratheritbe preservedinsteadof beingknockeddown.The communitywardenwantsthe
council to discussandagree on renovatingthe buildingbecause itcanbe a benefittothe publicand
can be transformedintoacentre that the local communitycanuse,thiswouldbe beneficial tothe
youthof the town.
SingleMum with2 children
The single mumneedstobe able to payfor her children;the new store openingcanmake a
potential jobpositionavailableforher.Theywouldn’tbe able toget a jobsomewhere else because
theywouldhave topay as much forchildcare.The jobpositionthatTescowouldbe advertisingfor
will be perfectintermsof workinghoursforthe single mumandthere isalsothe advantage thatthe
store offerslowpricesanddiscountsforstaff members.
Owner of a small store in the town centre
The ownerof the small store alsohas highconcernsaboutthe store;thisis because inthe pastin
othertownsthe communitydecidedtostartshoppinginothertownsmore thanlocallybecause of
the lowerprices.The ownerof thissmall store doesnotwantthisto happen.WhenAsdaopeneda
fewyearsago inthe local area theystartedto get more salesthanTescoand were havinga bad
effectonTesco’ssales. Asdanowofferssuchsmall pricesontheirproductsthatit hasput thisstore
ownerinworrythat many customerswill starttouse Asda instead.Tescodonotwant all their
customerstobe people likepensionersandpeoplethathave alow income because theywantall of
theircustomerstobe a general groupof randompeople,thiswayTescocan see how theyare going
to improve tomeetthe needsof everyonevisitingtheirstore. The new store will lowerthe pricesto
try and getmore attentionandmore pensionerswill visitthe store because of the price drops.
Which stakeholder groups will worktogether
The head teacherof the local school and the communitywardenmayworktogethertostopthe
store frombeingopened,the viewsthatthe communitywardenhasof the store becoming aleisure
centre will alsobe approvedfromthe headteacherbecause itisbeneficial forthe students.The
leisure centre alsohasotherbenefitssuchaskeepingthe youthoutof trouble because inthe town
theymay nothave verymany thingstodo.

4. Unit 1 D1
Lewis Appleton Miss Johnston
The managingdirectorof Tesco and the community mayworktogethertotry and findoutwhat the
bestproductsare to sell thatmeetthe customer’s needs,Tescowill needtomake sure that the
communityismade aware that newjobpositionswill becomeavailable andmaytryto persuade the
communitythatthe store is goingto have a positive effect.The managingdirectorwill tryto
eliminateanyproblemsthe communityhave andlowerthe pricessothatthe store getsa temporary
salesboost.
Stakeholders conflicting views
Some of the stakeholdersmayhave viewsthatconflicteachother.One of these groupsisthe single
mumof twochildrenandthe communitywarden.Theybothwantto gainsomethingoutof itbut
theywantit to be gainedindifferentways.
The communitywardenwantsthe oldfactoryto stay inits historicstate andpossiblyhave itturned
intoa leisure centre whichwouldbenefitthe youthof the community.Whereasthe motherof two
childrenneedsajobandthe Tescostore wouldhave the perfectworkinghoursforher.There are
waysthat these can be resolvedsuchasone of the possibilitiesisthatthe oldprintingfactorycould
become a leisure centre andthe mothercouldgetajob there.There isalsothe possibilityof it
becomingaTesco store but insteadof knockingdownthe printingfactoryitcanbe slightly
renovatedtokeepitshistoricstate.
The communitywardenthatwantsthe factoryto stay initscurrent state has similarviewpointsto
the headteacherof the local school.Theydonot want the factoryto cause badeffectsonthe local
communitysuchas the childrenhangingaroundthe store andgivingthe school a badname.Both
the stakeholdersalsowanttomake sure that the trafficlevelsare keptlow because itwillmake it
harderfor the communitytomove.Theythinkitwouldbe more beneficial tokeepthe centre inits
historicstate andbe renovatedintoaleisure centre becauseitwouldbe beneficial tothe local youth
communityandwill helpkeepthemoutof trouble.