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Stakeholders in a business

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Introduction

Task 5 Introduction: A stakeholder is anybody who has an interest in a business and can influence in a business and can influence the way it operates. This influence might be managers or owners (shareholders) deciding how the company runs, employees working harder if they are happy at work, or customers and local residents making comments that the company listens to and acts upon. Some stakeholders have more influence than others. Shareholders always have the most influence on the company. The stakeholder view of strategy is an instrumental theory of the corporation, integrating both the resource-based view as well as the market-based view. There are different types of stakeholders on the business, there are two types of stakeholders which are internal and external they include:- * Customers (External). * Employees (Internal). * Managers (Internal). * Suppliers (External). * Government (External). * Local Community (External). * Owners and directors (Internal). * Creditors (External). According to the owners + managers as internal stakeholders, "Profitability" is essential to discharging these responsibilities and staying in business. It is a measure both of efficiency and of the value. It is essential to the allocation of the necessary corporate resources and to support the continuing investment required to develop and produce future energy supplies to meet customer needs. Q. Discuss the key stakeholders in any business. There are many key stakeholders in a business with different jobs they are:- 1. Customers:- Customers are interested in a business because they want to purchase good quality products and fair prices. Firms must understand and meet the needs of their customers otherwise they will fail to make a profit. ...read more.

Middle

5. The Local community would expect from the company to take care of the environmental factors e.g. Wastage disposal, noise pollution etc. Q. Do they have any influence over the company? Different Stakeholders have a different influence over the company they are:- * Customers do have an influence over the company as customers want good quality products and services. Customers have an influence over the pricing levels i.e. John Lewis has to make the prices fair e.g. TVs. If John Lewis doesn't meet customer needs customers can go to another supplier and they can argue with them about John Lewis products. They can spread through word of mouth which means John Lewis could have a bad reputation. Customers can go to press/media i.e. watchdog. John Lewis has introduced price matching due to cost. As a customer quote states "we are never knowingly undersold". * Suppliers do have some influence as they can stop supplying goods in John Lewis. This could lead John Lewis losing customers. This could affect suppliers as they wouldn't deliver goods on time or they could not accept orders. * Local community do have influence over the company as they can be their customers as well as employees so they can influence their ability to maintain/ increase sales level. If John Lewis doesn't meet their demands then they could complain to the council/Brent cross shopping centre. This would affect as John Lewis would lose customers and customers would not be able in buying renting premises. Local community would also go to the media and would create a bad reputation or they can protest outside John Lewis if they don't meet their demands. ...read more.

Conclusion

* Employees/owners have got an influence over the business as they are the most important people because they make all the dealings with the customers; they also negotiate the right price with their customers. If they don't meet the customer's expectations the company could have a bad reputation and they could have a bad loyalty towards their customers. As customers can have an indirect impact on the business e.g. employees could go on strike. * Government does have an influence over the company as its job is to take care of all the legislations which comply with the company. If the company fails to meet these demands then they could get sued and could lose customers due to failing the legislations. * Suppliers have a big influence as they have to deliver the cars to the organization but if they feel the company is not making appropriate effort to their customers. They have an influence on the promotions done by the company and the no. of cars allocated by the company as they want to know how the company is proceeding because if it is working hard suppliers will not be much valued to the organization that means they could delay their stock to the company. Q. How does the business talk to them:- There are different types of communication throughout the business. HR Owen communicates with its stakeholders with different types of communication they are:- Stakeholders of HR Owen Communication Managers Reports, intranet, newsletter. Employees Intranet, newsletter, emails. Local community Local newspaper, letters. Government Annual reports, emails, Tax returns. Customers Letters, email, online shopping. Suppliers Stock ordering, letters, fax. ?? ?? ?? ?? Ayzaz Aqeel Business Studies Ms. Alder ...read more.

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