Explains the term ‘stakeholder’ and identifies three types of stakeholder of Tesco.In 1984, Freeman identified that, stakeholders are not only any persons or groups which can be affected by the organization’s aims, they are also those that can influence the firm’s outcome, hence the stakeholders can differ from one organization to another. It could be noticed that the definition provided by Freeman was used in the past by many scholars and it can still be found in the research documents in present time.Doh and Quigley (2014, p.
256) after analysing leadership at multiple levels, they have identified that the responsible leader at a micro level are key stakeholders, “responsible leaders consider their followers to be important stakeholders’. While analysing the leadership role, Metcalf ; Benn (2013) indicated that stakeholders can be separated into two major groups: internal and external stakeholders.Surbi (2015) explained the difference between internal and external stakeholders and concluded that, the internal stakeholders are those which are formally part of an organization and the external stakeholders are people and groups which can be affected or can influence an organization.Mike’s (2008) definition of stakeholder, expanded further to communities located in the vicinity of an organization’s office/site, communities which in Tesco’s point of view, are key stakeholders with significant influence on their organization.
Another major retailer present on the market, Spar Group Limited, lunched in 2013 a stakeholder review process where, they have recognised the consumer communities as one of their primary stakeholders, Spar (2013).The stakeholders of a company can also be grouped into: employees, suppliers, customers, and government, Create (2016). One of the biggest retailer Tesco, acknowledge the same key stakeholders: suppliers, colleagues/employees, customers, Tesco (2016).Tesco’s focus was to re-gain the relationship and trust with their stakeholders to achieve their long- term strategy to become a recognised brand in the retail industry.Tesco’s stakeholders can be resumed in the two major groups:• Internal stakeholders: employees & colleagues• External stakeholders: customers, government, suppliers, and communities