Tesco Shareholder Conflict

Tesco’s stakeholders are shareholders, customers, employees, government, local community, suppliers, and financers.

Conflicts Shareholders and Local Community :

The shareholders and the local community have had a dispute about Tesco staying open for longer. The local community is not happy for Tesco to extend their opening hours because the community that lives near by will see an increase in the traffic on the road by the Tesco store as more people will decide to shop at later hours. This will disturb the local community at late hours when they and their children and pets are trying to sleep. The importance that the local community have in this is if Tesco do this and disturb the community they will protest and this will bring Tesco bad publicity meaning they could lose customers and profit from sales they have not had. The shareholders will want the stores to stay open for longer hours because the longer the stores are open the more customers will shop, meaning more profit. If the shareholders are not happy because they are not allowed extended opening hours and are not making enough profit they might sell their shares of the business. By shareholders selling their share of the business a chain reaction could happen and the shareholders left may look at why they are selling their shares and do the same. If the Tesco shares are being sold then the share price could drop meaning Tesco will be worth less than what it was before the shares were sold. Tesco resolved this problem by using public relations to show all the different things that everyone could benefit as a result of extended opening hours. To stop the build up of traffic on the roads at later hours Tesco have improved their entrances to stores by using traffic lights to make the traffic flow more smoothly. This will be keeping the community happy with the fact the stores opening hours will be later.

Shareholders