Awarding Body: Arden University
Programme Name: Business with Foundation Year
Module Name: The Structure of Business
Student Number: STU57023
Tutor Name: Emmanuel MurasiranwaWord Count: 780Please refer to the Word Count Policy on your Module Page for guidance
In this assignment I will be describing the nationalisation of public services, explaining about the advantages and disadvantages of it. I will be also identify 6 stakeholders of and Tesco and then I will place on a Power/Interest matrix. Lastly I will be talking about Banco Alimentar and Cruz Vermelha which are voluntary groups in Portugal, I will explain where they get their funds from and who they serve.
Nationalisation of public services is the process of turning private asset into public assets. It is basically when the government takes over a business which was part of a private sector, the business is now owned and controlled by the government.
Back on the days around 1946 the government nationalised a lot of private businesses in order to ensure economic survival and to run the industry in a way that benefits the interest of the society and also to rebuild the country after the second world war. Those same businesses were sold back to the private sector between 1979 and 1990.
On of the disadvantages of nationalisation is that the business is not well managed because they are runned by the government , so they are protected from competiton and as the managers are not required to meet any targets they manage the business ineffectively and inefficiently. One of the advantages of nationalisation is that the government can set the prices based on the actual social factors regarding the natural monopolies and they will put social benefits above the profit motive. Sometimes major business have crisis and they tend to shut down so the government can save a big business by nationalising it.
Directors normally have the big say in the firm, they play a high role because they are the ones who manage the business on a daily basis and they have the power to decide what is more important to be achieved now for example prioritising the customer opinion and focusing on improving the quality instead of making profit as the top priority. Customers are another key stakeholder to the business.
The customer plays a major role as they are the ones who buys goods or services from Tesco. Customer Loyalty is very important as the business needs to make sure they can can retain customers and also attract new ones and they can do that by offering discounts, clubcards, special offers etc.
The employees are internal stakeholders and they are as important as any other Tesco’s stakeholders as they are the business face, whenever a customer as a querie, the employee will be the one standing out to clarify any source of information the customer might need, it can be about Tesco’s products etc.
Tesco shareholders do have influence in the business as they have their own shares. Shareholders can normally vote on Tesco’s decision so they play a big part when it comes to influence.
The supplier is another stakeholder of the business that plays a major role as they ar the ones that supplies the products to Tesco. The can suddenly rise prices over their products and that can affetc Tesco’s profits. The government is another Tesco Stakeholder and they have a huge importance on the business as the taxation policy can affect the business. If there is a change in law for example a rise on minimum wages, the business will have to pay all their employees according to the new law etc.
Banco Alimentar is a voluntary group that are dedicated to deliver food to those in need. They receive help from local farmer, supermarkets and the population aswell. Voluntarees also do campaignsat supermarkets which is the donation of food by the population, when they shopping they can buy something and leave it in the BA cart. The products are then sorted in a warehouse and sent to the families in need.
For a more human world
Cruz Vermelha is one of many others voluntary groups that exist in Portugal. The fight to prevent the humans from suffering, in Portugal and in the rest of the world. They protect the life and the health of the vulnerable people. They receive their help throught donations and they worked with the government, plus they have around 10 000 volunteers helping with the cause. Nearly 10 000 people annualy learns how to save lifes, 6 500 inmates are being helped with the ”revive+” programme when at liberty, 2 700 woman that suffered domestic violence and underage children have been welcomed into shelters etc.
Economics Help. 2018. Arguments for nationalisation | Economics Help. ONLINE Available at: https://www.economicshelp.org/macroeconomics/privatisation/nationalisation/. Accessed 17 January 2018.
YouTube. 2018. Stakeholder Analysis – YouTube. ONLINE Available at: https://www.youtube.com/watch?v=LFHlal9fwkU. Accessed 18 January 2018.
How Do Stakeholders Influence Business Activities? | Chron.com. 2018. How Do Stakeholders Influence Business Activities? | Chron.com. ONLINE Available at: http://smallbusiness.chron.com/stakeholders-influence-business-activities-18754.html. Accessed 20 January 2018.
Grandunion. 2018. Banco Alimentar. ONLINE Available at: https://www.bancoalimentar.pt/. Accessed 22 January 2018.
Super User. 2018. Cruz Vermelha Portuguesa – A nossa missão. ONLINE Available at: https://www.cruzvermelha.pt/a-nossa-miss%C3%A3o.html. Accessed 24 January 2018.