Stakeholders

• Stakeholders - Employee

  Interest: Good Salary, Job Satisfaction, Good working conditions, Job security.

  • They could change the standard of their work - if quality is poor, customers will go elsewhere which will affect sales.
  • Can take Industrial Action- A strike could lead to production stopping and customers not getting their orders. Sales will fall.
• Stakeholders - Managers

  Interest: Good Salary/Bonuses, Job Satisfaction, responsibility and status.

  • They make important decisions such as hiring staff, selling products etc. - A poor decision could lead to sales and profits falling.
• Stakeholders - Shareholders

  Interest: Want the firm to be profitable, Healthy dividends, improved share value.

  • They can influence decision making, they can vote for certain Directors, they can chose to sell their shares. - A poor decision could lead to sales and profits falling.
• Stakeholders - Customers

  Interest: They want best quality products at lowest possible price, a range of goods and services.

  • They can choose whether or not to purchase goods or services, they may recommend the business to friends and family. - if customers go elsewhere then sales and profits will fall.
• Stakeholders - Local Community/Pressure Groups

  Interest: Companies provide jobs for an area, businesses offer goods/services, the community care about the area they live in for exmaple the environment.

  • Can make complaints to Local Authority, can petition against the company. - If a complaint is upheld it may mean a business has to close.
• Stakeholders - Banks and Lenders

  Interest: They want to make sure cash flow is stable so they can ensure repayment.

  • They can choose whether to grant or withhold loans, they can extend or shorten the loan repayment period. - if a business doesn't get the loan they require they may not be able to expand which could lead to sales not being as high as hoped.
• Stakeholders - Suppliers

  Interest: Will want the business to be successful to ensure repeat custom, they depend on this custom for survival.

  • Change Prices, Offer discounts, change their lead times. - if prices increase, the price of the product produced may increase which could result in customers going to competitors for goods.
• Stakeholders - Government

  Interest: Will want to know how much the business is making so they can receive tax, will want to know how well businesses are performing as it helps the economy.

  • Set taxation rates, legislation (e.g. National Minimum Wage Act), can issue bans. - Higher tax rates mean a higher wage bill for a business and a reduction in profits.
• Stakeholder Conflict

  customer vs the manager

  • managers will want to make high profits on goods and services whereas customers want the best quality for the cheapest price.
• Stakeholder Conflict

  employees vs managers

  • managers may want to close a branch to save on staff wages whereas employees will want to keep their job (job security).
• Stakeholder Conflict

  local communities vs managers

  • managers want high sales and expansion of operations whereas local communities will want to protect their local environment.
• Stakeholder Conflict

  managers vs suppliers

  • suppliers want prompt payment at high prices so they can earn profit whereas managers want discounts for bulk buying and good credit terms.
• Stakeholder Interdependence

  • Managers will need employees to operate the business and employees need the managers/owners to provide secure jobs.
• Stakeholder Interdependence

  • suppliers will need managers to buy their stock and managers/owners will need suppliers to provide good quality stock on time.
• Stakeholder Interdependence

  • employees will need customers to use the business to provide them with job security and customers need the employees to give them good quality customer service.
• Stakeholder Interdependence

  • government needs the business owners to provide jobs and pay tax and owners will need the government to ensure it can continue trading.