The local community and the government have some of the same interest as each other. The government want jobs to be available to the local community, and obviously the local community want jobs as well. When Tesco’s build a new building in an area, this opens a lot of opportunity for the local community to be able to work for Tesco’s and then when they make money they will pay taxes to the government. But some problems that the local community might not approve of is the amount of trucks and work machines that will be coming through their town which causes traffic and pollution.
CAFOD stakeholders also have some differences in their organisation. As CAFOD depend on the donations, the people who donate the money would like all of the money to go to the people in need, whereas CAFOD will need to use some of the money to be able to pay for their own problems such as electric bills in stores, rent and things alike. Even though the board of trustees would like to achieve their objective in fighting poverty, they cannot always fund all the money to the charity because they need to pay their own expenses.
Employees that work for CAFOD would like to be able to work in good conditions, so if they are abroad then they expect to be able to live in a reasonable environment. But this is not always easy to provide because in less developed countries they might not have accommodation that is up to the standards that they want. So the manager will have to explain to the employees about the information including how they will be living etc.
Customer stakeholders in Tesco’s are important because the majority on Tesco’s revenue is from the customers. So it is important for them to have an interest in the business. Customers decide to shop at Tesco because they believe that the products they sell are cheap and value for money and value for money is what influences the customers to shop there. The owners of Tesco always want to maximise their profits, so they might do this by raising prices on certain products that have a high demand, cut down on the amount of employees that work in the business, or lowering prices to try and bring in more customers.
However, when the customers and managers decision oppose and differences are made, the owner are always going to be the exerting stakeholder between the two because they have more power than customers. Because the owners make the decisions he has to come to a decision about prices, so they will have to balance the two demands so that both stakeholders are happy and not so that one is more overwhelmed than the other. This is where the stakeholders have to work together in order to overcome problems. Customers will want prices to be low and be at a good quality/ value for money, whereas the owners will want to raise the prices of the products so that they can maximise their profits. This is where both stakeholders oppose each other. Therefore, the owner will have to come to a decision to lower prices on some products, and raise the prices on other products. The owner might raise the prices of the products that are high in demand, and lower the prices that are low in demand, or vice versa.
Trade unions and employers associations’ conflict can be solved depending on the problem. Trade unions can protest and go on strike to demand on a change within the business because they are not satisfied with either the pay, or work conditions of the workers. However, the employee associations can resign with the trade unions employees and search for other workers who would are satisfied with the work conditions and pay for the business and agree to work for them. So therefore in this type of situation, the employee association will exert power because if the trade union decide to protest, the employee association will fire the workers and find new workers. Although the employee association will exert in this situation, the trade union can cause a lot of problems for them, such as losing revenue for the business because there are no workers because they are protesting, and it is a long process to employ the right people for the right job.
Although the government do not own Tesco’s, they have more power over them because Tesco’s pay taxes to the government. The government have some power over the business because they control the rate of taxes; the government can choose to have high tax rates or low tax rates. The government would like to have high tax rates, but they cannot put it too high that businesses think that it is unfair, so they will have to settle with a reasonable price so Tesco’s are happy to pay the taxes, and that the government are satisfied with the amount coming in.