• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Stakeholders and there role within a business.

Extracts from this document...


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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Marked by a teacher

    Sainsbury's Stakeholders and their Job Roles

    4 star(s)

    Businesses also have to stick to a wide-ranging amount of legislation, which is aimed at protecting the consumers, the employees and the local environment from business activity. 3. Businesses will be affected by different economic policies, (for example, if interest rates are increased, then this will discourage businesses from borrowing money since the repayments will now be significantly higher).

  2. Btec National Business Level 3 Year 1 - Exploring Business Activity

    A business has to find a way of satisfying these different interests especially those influenced stakeholders but there is no sure or safe route through this dilemma. On table shows of the two businesses stakeholders with a setting of strategic aims and objectives.

  1. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    record profits and gave out huge bonus's to staff even though the rest of the country were struggling financially. * Bankers were greedy and their massive bonus's helped to push house prices up especially in and around London. They were also short sighted when they were planning investments and looked to see what would get them a return quickly.

  2. Stakeholders influence

    Olympos is juts like other business with some competitors in its activity area such as: * Heights Health & Fitness * Curves Haywards Heath * Blue Sky personal fitness club All of these organisations are fighting to be the best one and to attract as much customers as possible To

  1. I have identified four contrasting businesses they are as follows: KFC John Lewis ...

    The sector of economy KFC would fall under would be the public sector as it provides a service to the public in exchange for money and is also controlled by the government. KFC's objectives would be to: > To expand as a business > To achieve customer satisfaction > To

  2. For my portfolio, I was asked to do an assignment on two businesses. I ...

    is secure and make profit Shareholders: The shareholders want to know the company is doing well and making profit and paying them good dividends on time Local community: The local community want to know that no business is affecting the environment and it's surrounding Government: government want to know that all the business is paying taxes and obeying laws.

  1. Comparison of stakeholders interest and influence. Apple vs. Mercedes Benz

    http://gb2009.daimler.com/en/management-report/general-conditions/strategy.html Strategic planning and missions and values Strategic planning of an organisation is the process through which major plans are created. These plans involve vital decision-making and planning. They create these plans to help the organisation to meet aims and objectives.

  2. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Marketing activities allows Tesco to examine its business in great detail so they can further improve it and maintain their market position. It allows them to develop competitive intelligence which is a vital tool in a competitive market. Tesco is involved in many of the traditional marketing activities.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work