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For purposes of this assignment, the author uses Tesco and Samsung to explain the stakeholder influence in the two organizations.
Business sector
Samsung is a recognized brand in the production and distribution of electronic products ranging from smartphones, semiconductors, wearable devices, household items and computers among other electronics. Tesco, on the contrary, is the largest online food and grocery retailer in the United Kingdom, with retail stores in Europe and Asia.
Business purpose
Samsung’s business purpose is to give its customers innovative products to help them discover new experiences, connect them and open doors of possibilities with technologically savvy products. Tesco’s purpose, on the other hand, is to serve shoppers better in the United Kingdom; with customer-centered solutions aimed at helping them better their quality of life.
Ownership of the businesses
Samsung is owned by both common and preferred shareholders. Common shareholders are stockholders at the bottom of the pyramid. In the event of liquidation, they are only paid after preferred shareholders and other debtors are settled. On the contrary, preferred shareholders have a greater claim on the assets and earnings of the company. They enjoy dividends and must be paid before the common shareholders. Nonetheless, they lack voting rights. Put in perspective, Samsung has 142,969,337 or 87.2% preferred shareholders and 21,063,427 or 12.8 common stockholders (Shin, D.H., 2008). Tesco, on the contrary, is owned by a number of shareholders such as Norges Bank commandeering 5.96%, BlackRock, Inc. holding 5.01%, Schroders PLC holding 4.99%, GIC Private Limited 3.08%, while the rest is owned by preferred stockholders (Bracke et al., 2005).
Stakeholder influence
Samsung
Samsung has a number of stakeholders who can potentially influence the activities of the company.
Government: - the government is concerned about the shared growth between the company and the community as a corporate citizen. Besides, it pushes Samsung to strengthen its workplace safety standards.
Customers: - customers expect to receive affordable and innovative products that surpass those of the competition. Besides, consumers are also concerned about labor rights of employees, and elimination of conflicts especially in regions where the company sources minerals and other resources.
Partners: - partners are always looking forward to fair pricing of raw materials, the hiring of new employees, and facilitation of suppliers business growth.
Local communities: - local communities are concerned with ethical facility management and an increase in corporate social responsibility (Shin, D.H., 2008).
Tesco
Suppliers: -Tesco suppliers have a strong bargaining power because they can influence the entire value chain by affecting the prices of raw materials and distribution costs
Shareholders: -The shareholders are the owners of the company because they have invested money and speculation into the growth of the business. The shareholders are concerned with pushing the company to increase shareholder value for higher dividends.
Customers: -the customers consume Tesco products. Therefore, they can influence the quality of products and prices of the food products because of they possess a strong bargaining power.
Local communities: -local communities are individuals that the company interacts with, in the surrounding. The local community may consist of business operators and community members, whose interactions involve sharing of resources and information. The activities of Tesco may affect the local community and, on the other hand, the actions of the local communities may potentially affect Tesco (Bracke et al., 2005).
References
Bracke, M.B.M., De Greef, K.H. and Hopster, H., 2005. Qualitative stakeholder analysis for the development of sustainable monitoring systems for farm animal welfare. Journal of Agricultural and Environmental Ethics, 18(1), pp.27-56.
Shin, D.H., 2008. The assessment of 3rd generation mobile policy in Korea: A web of stakeholder analysis. Technological Forecasting and Social Change, 75(9), pp.1406-1415.
