People in business

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Unit 2 People in business

Stakeholders

Stakeholders are a group of people who have an interest in ‘Flybe’ and an influence on the company, some stakeholders are internal to the firm, and others are external.

Customers - Customers make up the main frame of 'Flybe'. Without the customers the company would not be taking off as the third cheapest airline in Great Britain. The customers basically say what they want and when 'Flybe' decided to be one of the cheapest airlines, they had to listen to their customers and new customers. Without theses people criticising the company and giving the company advice, Flybe probably wouldn't be well known as it is today. Customers which use 'Flybe' are prepared to lose some customer satisfaction for a cheaper flight, they expect some sort of film if they are on a higher-class flight and even something to eat and drink included. But other 'Flybe' customers who choose the cheaper option expect the basics and nothing extra.

Employees - The employees include the manager and the whole staff in the Flybe Company. There are cleaners to engineers that work for 'Flybe'. The pilots get help with their training from 'Flybe' such as money wise, 'Flybe' also employ through the express and echo, this is a paper that enters the whole of Exeter and any one who's anyone has one. You'll probably find that the Exeter paper has a job page every Friday and this is very popular with unemployed people. 'Flybe' are also thinking of going on the London stock exchange in the near few years, many companies think about giving there staff shares in their company, this will act as a bonus for the employees. 'Flybe' are also thinking about this bonus as it would higher the standard of employment.

Over a number of years ‘Flybe’ features of employment are:

  • Growth in the number of woman workers

  • Growth in part-time and temporary jobs
  • Growth in the number of self-employed people

Flybe have many points to think about when trying to employ someone, firstly they have to think about their age, their skill level and if the skill level could rise easily.

  • Age – Flybe have to think about younger workers entering their sort of market may face problems in that sort of market that ‘Flybe’ entertain. Plus younger employees are less expensive to make redundant.
  • Skill level – Many jobs in the ‘Flybe’ company are for skilled or semi skilled workers.
  • Discrimination - ‘Flybe’ also have to think about discrimination when employee someone, such as discrimination by age, their race or ethnicity, sex, and disability.

Owners and Shareholders - As 'Flybe' are not on the London stock exchange, stocks and shares are not available to the public. There are a small number of shares available to the owner of 'Flybe', this means that the private trust, also know as a family business, can sell at anytime but they must hand over there few shares in the company. Being supported and owned by a family trust means that they give a certain amount of money to the company it self, if the company is not achieving in anyway or in the red it is simply the family trust that is in control and total responsibility. As an incentive to the staff of 'flybe', flybe have decided that when they go on the stock exchange around 2007 they will allocate shares to their staff.    

The local Community - The people in the local community have a lot of discussions with Exeter airport and 'Flybe' it self, such as if ‘Flybe’ or Exeter airport decide to expand, or have more planes fly in every day, even things big and small, such as redundancies or recycling. The public looks at all decisions with the government to ensure the business and company doesn’t break any rules and regulations.  

Pressure Groups – a pressure group is an organised group of people with similar interests, who attempt to influence others. In ‘'Flybe’s’ case they work locally, when ‘Flybe’ try to influence their local council, these pressure groups have big concerns about that certain decision. ‘Flybe’ mainly have problems with environmental problems, for example wild life around the airport area, and situations of fuel and pollution.

Suppliers - ‘Flybe’ suppliers are lots of individual companies, such as to fuel their planes they use the world wide company ‘Shell’, ‘Flybe’ also have companies to deal with their food on planes, the staff uniforms, even spare parts for the computers and goods they need to run their business.

Financiers – the financiers of ‘Flybe’ are the family trust, this family own ‘Flybe’ and support the company through any finance along the way, normally the family trust gives a certain amount of money to run the business each term or each year, this give the family and the company a guide line to work from. As the company has no dividends to pay out or worries about stocks and shares, the company can expand and budget for the future years. But if 'Flybe' sell shares on the stock exchange and go ‘plc’ this means they would have to share parts of the profits which is a down point for 'Flybe', and is very hard to change back to a private limited company. This means that the decision should be thought through thoroughly before a conclusion is made.

The ‘Flybe’ company recognises five areas of responsibility:

  • The Customers
  • The Employees
  • The Owners
  • Those whom they do business with.
  • The local community

‘Flybe’ needs their customer to be and survive as a business, ‘Flybe’ also treat their employees well and they also need them to run the business for the customers that use ‘Flybe’.

‘Flybe’ needs their owners to keep the business running and to keep their employees happy every month with their wages and to expand and keep the businesses level of standards the same if not better every year.

The local community and Government, keep ‘Flybe’ on their toes with the decisions and comments they make all year round to hopefully improve the business.

‘Flybe’ would not run smoothly with out their suppliers and financiers, with the suppliers the business would drop in standard, not only drop in standards but they will have huge problems within the company, such as giving the customers the ‘Flybe’ service. Also without the financiers ‘Flybe’ would have no control on how much they can develop the business how much their income is, and people wouldn’t get paid every month. Most payments will come from the income earned from the company.

All of the bold points above have high influences on the company. ‘Flybe’ acts like a circle, and if a part of that circle isn’t working or not up to ‘Flybe’ standards the rest of the circle will fall, and would break away making the company look bad and effect other to do with ‘Flybe’.  

Section B

Job roles and contracts of employment

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The board of ‘Flybe’ and Managing Directors can’t take every decision needed. They delegate, pass down the chain of command to their managers who have the responsibility of making day-to-day decisions. These managers will, in turn, delegate the more routine tasks to their own staff.  

For instance delegation of duties must be accompanied by giving the member of staff the authority to do these duties. The member of staff will then have the responsibility of doing the job.

If managers don’t delegate properly, they may end up carrying out the more routine tasks that ...

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