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Stakeholders and there role within a business.

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Introduction

Introduction The aim of this section is to show how directly and indirectly stakeholders are involved in a business, to show that stakeholders and owners may have a common interest and to bring out that some stakeholders are more powerful than others, why this is, and how they exert their influences on the business. Stakeholders Stakeholders are interested in what happens in a business and the way these activities are managed. There are many different parties who may be interested in the running of a business. They are as follows: * The government * The local community * Customers * Employees * Shareholders Stakeholders can come together for a common purpose and this increases the amount of power they have, but there can be problems between stakeholders if they are looking for different aims and one of them is bound to make a loss from the merger of the two groups. These stakeholders can either be involved internally i.e. employees or externally i.e. shareholders. The stakeholders of Tate & Lyle The stakeholders of Tate & Lyle are as follows: * Shareholders * Customers * Employees * Local community * Government * Sugar cane growers * Other businesses a) Shareholders Tate & Lyle is a public Limited company with shareholders all over the world. The shareholders are the owners of the company each shareholder has purchased shares in the company. Part of the company's capital comes from payment for shares. The shareholders are mainly interested that Tate & Lyle make profit in order to earn more money. ...read more.

Middle

The Stakeholders of Pansear Wines and spirits The shareholders of Pansear Wines and spirits are as follows: * Shareholders * Employees * Customers * Government * The local community * Suppliers a) Shareholders KFC GB Limited is the mother company in the UK. It is a private limited company owned wholly by PepsiCo. The shares are not open for sale to members of the public and so KFC GB limited cannot raise capital by offering shares on the Stock market. b) Franchisees As I explained earlier, KFC runs its business by selling its rights to franchisees who run outlets all over the UK. These franchisees are usually sole traders and are very important stakeholders of KFC. They have the responsibility of making profits from their individual outlets and profits made after payment of fees and expenses are theirs to do with, as they like. It is in their personal interest therefore that the business is successful c) Employees Employees of KFC are also stakeholders of the company. KFC considers it very important to have a good work environment for its workers. The nature of the business is hazardous as there is a risk of fire outbreaks, but KFC ensures that the workers are well trained, are aware of all the possible risks of fire and provide safe tools for work. Though salaries are not very good, work hours are very flexible and so KFC is able to cater for the needs of students and young people who are looking for part time employment. ...read more.

Conclusion

The employees fought against this but the company won out. 2) Lack of consideration for customers may cause conflict. For example if Tate & Lyle decide to increase the price of sugar without justification, the customers can show their anger by boycott the product and buy from Silverspoon or any other company. 3) Shareholders who feel that they are not getting value for their money can decide to sell their shares whenever they feel like. If too many shares are sold at once it can influence the price of the shares on the stock market and reduce their value. Also shareholders can decide on whether to retain the directors or get rid o them. They can also influence the company's policies. 4) The community can cause a lot of trouble for Tate & Lyle if they feel that their rights are not being taken into consideration. For example, if the gases and sugar get into the environment they are capable of causing ill health and damaging peoples homes and belongings. The community can organize demonstrations and petition for the closure of Tate & Lyle. This can slow down the running of the business and lead to low productivity and therefore affect profits. 5) When the government sets rules it expects them to be kept and if the company is trying to save money by not fixing damaged machinery and letting workers perform under harmful conditions, hen government might have to step in or employees can go to their trade unions for advice. This would put management under pressure to see that things are done properly or they can get into trouble. 1 ...read more.

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