PRE RELEASE

1. Meeting the objectives of external stakeholders

INTERNAL STAKEHOLDERS

A stakeholder is any person, group or organisation which has an interest in a business because they are affected by, or may be affected by, the activities of that business.

• CEO/Directors/Owners/Partner

• Managers/Supervisors/Assistants

• Employees

• Trade Unions

EXTERNAL STAKEHOLDERS

• Environmental health

• Customers

• Planning Departments

• Local Community

• Potential Investors

• Local Government

• HM Revenue and customs

• Central Government

• Lenders

• Pressure Groups

• Supplies

Business responses include - the degree of influence individual stakeholders possess is likely to determine how businesses respond to individual stakeholder objectives

TESCO

CUSTOMERS

• Kids eat free

450,000 free childrens meals

• More than 4,000 prices cut

• 500 own brand lines

LOCAL COMMUNITY

• Donated more than 2million meals to support communtites as part of winter food collection

• >2.0 million school pupils reciving free school meals

• £5.3 million availaible through stronger starts program

“the role we play in the thousands of commuities we serve is vital”

2. How Businesses comply with the Consumer Rights Act

Consumer Protection Consumers are protected by this law and businesses need to ensure that the rights of consumers are abided by. This includes services and products and digital content.

The Sale and Supply of Goods Act and the the Supply of goods and services act have now been amended into the Consumer Protection Act.

As with the Sale of Goods Act, under the Consumer Rights Act all products must be of

• satisfactory quality

• fit for purpose

• as described.

VOLKSWAGEN

what is volkswagen accused of?

• “ diesel dupe” - the Enviormental Protection Agency

cheating emissions test in US

• . The EPA has the power to fine a company up to $37,500 for each vehicle that breaches standards - a maximum fine of about $18bn.

• Martin Winterkorn, said "broken the trust of our customers and the public". Mr Winterkorn resigned as a direct result of the scandal and was replaced by Matthias Mueller, the former boss of Porsche.

  
  

change in response to scandle

• A 2 year unliminted mileage manufactures warranty

• 1 year warraanty

• 12 months cover against costs of reparing failed components

• electric dirving- high quality

3. SWOT analysis in action

   
   

Businesses can analysis their internal environment and their external operations by using a tool called a SWOT analysis. This analysis helps the business to make decisions now and in the future. Its simplicity means that a business owner can quickly analysis their current position making it very effective.

Strengths: positive attributes, internal to a business and within the organisation’s control. For example it might be the number of stores in their chain.

Weaknesses: internal factors within the businesses control that detract or hinder organisation’s ability to achieve their goals. For example which areas might the organisation improve?

Opportunities: external factors that may help the business to exist and develop. What opportunities exist in the environment. For example a new market to enter

Threats: external factors beyond the businesses control which could place the organisation aims or operation at risk.

TESCO

Strengths

• Operate 4,506 stores globally

• 3,786 uk

• £61.5bn group sales

Weakness

• 65% of people concerened about impact of climate change on food supply

• 41% of consumers willing to pay more for a product. If its quick and convienant

• 50% public are concered on cost of living. Rise by 70% at start of year

Oppotunity

• Online grocery delievery

• Partnersip and collaberations

Threat

Principle risks

• Health and Saftey

• Technology

• Data privacy

• Cyber security

  
  

4. Operational responses to rising levels of disposable income

Disposable income is the amount of money that individuals in the household can spend or save after paying taxes and other deductions or expenses.

• Businesses can respond to rising and falling disposable income

• Businesses will locate in higher income areas so they can target higher income customers

• If disposable incomes are high then a business can stock luxury goods, branded goods

• Its helps businesses to decide what products to stock or services to provide customers

• Businesses can choose a different pricing strategy i.e increase the product price

WAITROSE

Low disposable Income

• Low prices - Carrot costed 11p

• Marketing poster

• Closing announcements

High disposbale Income

• Prices increase - Carrot costed £1.40

• Markeitng poster

• New waitrose locations

5. The use of short-term sources of finance

• Failing to manage cash and cash flow can cause business failure. Even if a business has many customers, it can still have negative cash flow.

• Businesses need positive cash flow to reduce the risk of failure and insolvency. Three possible steps to get out of negative cash flow are:

• negotiate an overdraft facility - Short Term source of finance

• keep costs under control

• keep cash coming into the business by arranging sensible credit arrangements with suppliers and customers, and having fewer customers who pay for products and services on credit

• Trade credit

• credit cards

• overdrafts

• small loans

Window Warehouse

creditors fall

2023

bank loans and overdrafts - 13,650

overal - 120,773

2024

bank loans and overdrafts - 4,327

overal - 102,763