TESCO & NHS

Customers are the most important stakeholders in Tesco. Wants and interests tend differ from customer to customer because Tesco has wide range of customers. Although customers are external stakeholders they have a large influence because they are Tesco’s main source of income. Customers want to purchase products at the best prices possible. When customers are displeased with Tesco’s prices they turn to competitors, and as result of this Tesco loses profits and market share to its competitors. Tesco must insure they are offering the best deals and meeting the wants of the customers to prevent this from happening. Further more, being that Tesco has such a large customer portfolio, they must try to cater to all of them. For instance, some customers who are on a budget looks for bargains and deals; on the other hand, customers on a higher budget look for high end quality products and are not as concerned with the price. Customer’s interests may conflict with that of the shareholders. This is because shareholders are more concerned with profits and dividends. If the business doesn’t receive any profits then the shareholders do not receive any dividends. When customers want lower prices share holders would want things to be sold for a higher prices to maximize the profit. Unfortunately, high prices can result in customers leaving Tesco and turning to competitors. This causes the market value and share value to decrease, which also does not meet the interests of the shareholders. This is why Tesco’s Chief Executive Dave Lewis has decided not to pay any dividends this year and put the customer first. If the number of customers falls there will be fewer dividends in the future . On the contrary, the NHS’ customers are patients rather that shoppers. As a result of this the patient’s interests are different. NHS patients need health care for free while Tesco’s customers aim for the best available prices rather than free. Furthermore, many of the NHS’s patients have a necessity for the service or else they would not be able to afford treatment. In addition, the NHS is funded by taxpayer’s money; this means that taxpayers should have access to the service; particularly those who have long term or chronic illnesses. Tesco customers do not necessarily need Tesco, as there are many alternatives, such as Asda, Aldi, Sainsbury’s and many more. However, there are some similarities in interest, such as both customer types wanting a convenient location and convenient hours. The NHS and Tesco both offer 24-hour services; also they both have accessible locations respectively. NHS covers the local General Practitioners, university hospitals, and walk in centres. This makes them very accessible. Tesco offer various styles of stores, such as Tesco express in smaller areas, or the Tesco metro and the Tesco Extra.
The employees of Tesco are in a pinnacle position because Tesco needs them but they also need Tesco. Employees are the backbone of the company, executives may create and develop plans but it’s the employees who actually execute them. Without employees Tesco would not be able to sell it products efficiently. This would be disastrous for Tesco as the sale of products and services is their main source if income.
Employees are complex because of the various types with different interests. For instance, a full-time employee may be looking for steady hours, whilst a part-time employee will be more flexible. Some employees look for the prospect of a promotion and a long-term career. On the contrary, some employees only need Tesco as a stepping-stone to make ends meet. Furthermore, there are different levels of employment with different levels of influence. Managers and executives have control over proceedings while a cashier may simply follow procedure. However, no matter what the issue, employees are always stronger in numbers. Tesco may be reluctant to change for one, but when threats of staff wide strikes come into play, they will be more willing to compromise. In addition, employee accounts of the way Tesco treats them can travel through word-of-mouth. This influences the portrayal of Tesco. If these types of employee comments reflect Tesco in a negative way, it can cause Tesco’s customers to turn away. Employees are the bridge between business and customers so they very important to the businesses survival.