3-11

During Tesco’s run in 2014, evidence showed that the company was running on
corruption and mistrust between the employees and the suppliers, effecting their share price
dropping by 12%, and losing 2 billion off the company’s market value. Although Philip Cake did
highlight the importance of stakeholder’s loyalty and trust, a 2013 annual report came to show
poor relations with suppliers and a failure in compliance when it came to meeting financial
targets.

Dave Lewis had made his impact in 2014 marking a footprint in the company, and only
after 3 weeks he had realized that something significant has to change in the culture. After the
payment of the penalty series they had begun building the trust and transparency may take time,
improving its communication channels with suppliers, a majority of whom say have amended the
relationship with Tesco.

3-12

The primary stakeholders in Tesco are those who are labelled as investors, employees,
customers, and suppliers. In the eyes of the customers, employees have shown corruption in the
company and ruined business relations with clients and suppliers. The financial department had
been drastically affected by avoiding payments to suppliers, showing percentage falls in share
prices and a loss over 2 billion in the market value. This statement shows investors that Tesco
may no longer be the right company to secure your investing options in.

3-13

As written in the 4th paragraph, evidence had been found to prove a direct link between
management and employees to avoid paying certain suppliers. Under Dave Lewis’s notice this
was noted as a scheme to show others they were not underperforming and therefore resulted in a
1st degree charge of fraud. After Dave Lewis’s entrance culture change was a must for the
company taking importance in replenishing the image and recover from the fraud they had
commit. After five years in the 2018-19 year the increase percentage profit of 11.5% had proved
that the new culture change under Dave Lewis had had proved to be successful.

3-14
 By joining a company, an employee is committing most of the hours in their week to
ensuring the company is thriving, gaining most of their work. Spending years in an office space
is an investment that shares quality more than money can hold, and a reputation in an employee’s
future. As an employee who would be looking for a job, to invest my time and skills in a
company that’s reputation doesn’t stand well with others, I could not only be investing my skills
in a bad environment but losing a public image in front of potentials customers and
opportunities.

John Bamboukian

George Beaino