Stakeholder Conflict at TESCO: Exam

Fuel delivery drivers to strike

• Conflict happened between the internal stakeholders; particularly between the owner and employers.
• Problem occurred when the employees' job, pay and conditions appeared under threat by transfer  from Wincanton to another company, TDG.
• The negative impact that is very likely to occur is already announced strike of 140 drivers and will last for two days. Therefore company will loose money for these two days.
• My advice is to transfer the employees and not only let them keep their job but slightly raise their pay.

 

Tesco wins pay battle

• Conflict occurred between the interior stakeholders, shareholders (NAPF,GKS) and the Tesco board members.
• The problem is that Tesco board members want to rewrite rules of board members despite the fact that only 59% of those voting were supporting it. Voting was about raising the payment which would result in doubling the current salary of the board members. Shareholders from NAPF abstinented from vote (17%) and GSK was completely against it.Yet, the shareholders cannot against the board members because of the record profit growth in past year.
• Possible and very likely outcome is weak profit growth and falling share prices fueled by investors' resentment and shareholders' dissent.
• Compromise, in this case, would be raise the investors' pay but not as much as doubling it. They would also have to manage to keep the profit growth.
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 Will protests hurt the Tesco brand?

•  Problem occurred between the external and internal shareholders; the community, owners of smaller shops, possibly the Tesco suppliers and its investors.
• Tesco, with its annual £2bn profit, steals customers not only in its home area but also abroad. It has2,300 stores in 13 countries and continues to colonize. It various services, that originate in groceries, expanded to areas of electronics, clothing, fuel insurance policies and other financial services. By this, Tesco affects independent store owners and drives them out of business ( 2000 small food retailers in UK alone) since it can afford to give lower prices.
• Possible outcome is to reduce Tesco's power and break it up by pointing out its faults and by that make people to stop buying there. Another problem results in shareholders in other countries that serve as farmers workers and suppliers for whom Tesco is their only source of income.
• My advice is to stop its "interest area" growth. Instead of continuing to include, for example, the  financial services, Tesco should focus on why they even started. If Tesco started out as a grocery store, it should stay that way. On the other hand, if they should be left alone otherwise, because if they were good enough to make it to the top their crown shouldn't be taken away easily.
• One of many anti-Tesco signs. Tesco's original slogan says "Every little helps".                    

                   



Opposition to fourth Tesco plan

• The stakeholders are interior and exterior; Tesco versus the community and the city council.
• Problem is that Tesco already has 3 sites in one city, giving the nickname Tesco Town to the town of Iverness. The Highland Council said that another Tesco is not needed, since they already have Tesco mania, however, Tesco still keeps on pressuring. 
• If another Tesco is built, it will pulverize every business that was left and therefore many people will loose jobs. 
• My compromise solution is to abort another Tesco in the area and leave all the others there. This may seem as a win situation for the community, but let's be honest, being surrounded by 3 Tescos is bad already. 

                                                   

Northern Foods to shed 900 jobs

• Complications are between the Tesco management and the suppliers.
• Conflict is based on closure of Tesco-only dedicated pastry plant, Trafford Park Bakery, which cuts 690 jobs. It is also reducing  They will also reduce employees by cutting 210 people from another Northern Food plant called Palenthropes. Tesco does this because they made loss of £3m.
• The problem is that 690 loyal employees from company that is dedicated to Tesco will loose their jobs without replacement because other sites don't have enough capacity. Also people are pointing out to Tesco's social irresponsibility.
• My personal advice is to pay people money for couple of extra months, since they are firing them and help to find replacement to as many of them as possible.. 
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