Stakeholder Conflict and TESCO

1. & 2.  (between which stakeholders is the conflict?, what is the nature of the conflict?)

The conflict is between Tesco and its employees. Transport workers who deliver fuel to Tesco fear that they will use their jobs because of the plans that say transport workers' employment is going to be transfer from Wincanton to another firm, TDG.

 

Shareholders (investors) highly disagree about giving 2-year rolling contracts to chief executive (Terry Leahy) and to other board members. Despite this discontent Tesco wins the pay battle.

 

Another conflict is that Tesco operates more than 2,300 stores around a world and this fact highly affects smaller independent retailers. Many small shops have to close down in a current area because they get almost no profit. The explanation is that recycling money goes to a big multinational chain, rather than to small local traders.

Local Community doesn't want the another (fourth) store of Tesco in the city they live which creates a conflict. People who live in this city think that 3 stores of Tesco is definitely enough, but Tesco company still wants to build another one.

 Tesco and its suppliers have a conflict as well. Tesco is blamed after one of its suppliers revealed they will close Trafford Park Bakery. This means that lots of people will loose their jobs. Suppliers and other firms think Tesco should take a responsibility and compensate it somehow.

3. (what is the adverse result that is expected to occur with the specific stakeholder  group?) 

  

Transport workers (stakeholders) may loose their jobs, and their pay and conditions are under threat.

Shareholders think and argue that 2-year contracts maximize chance of failure.

Customers have less choices for shopping because many small retailers' stores close down.

Local Community & Local Council believe that 4th Tesco store is just a waste of space. There's no need for it.

Many local workers loose their jobs because one of the Tesco suppliers decided to close down Tesco is blamed. 

4. (what would your advice be to settle the issue using a compromise) 

Tesco should compensate the possible loss of jobs, pay and condition to make a compromise transport

workers.

They should make everybody to vote.

There should be a policy that only one Tesco store can be placed in a particular area which means retailers' stores wouldn't have to close down, and customers would have more choices for shopping.

As I've already mentioned there should be some deal between people who live in the city with Tesco. Local people should have a right to say how many Tesco stores can be placed in their city.

Tesco should "practise" Corporate Social Responsibility and supplier shouldn't close down the Trafford Park Bakery but they should try to make a deal with Tesco again.