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Task 4 stakeholders

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Task 4

Stakeholders

A Stakeholder is someone who has any interest in the business any one who is affected by the business. Some examples are: customers, suppliers, employees, local community, and local sports clubs. The stakeholders will vary depending on what the business is and who it affects.

Stakeholders in Falconi brothers include  

Competitors

Other businesses

USDAW-Trade unions

Government

Shareholders / Owners

Bank  

Customers

Suppliers

Local community

Employees

Garage

Trade Unions- have an interest from Falconi Brothers business. They represent people who work for Falconi Brothers, they improve peoples pay and condition of employment.

Competition is a rival in business, two or more business are trying to sell to the same customers. An example of competitors is Tesco and Asda because both sell food in supermarket and both want people to buy from them.

 Local competition are GB Liners Ltd Leeds LS13 4UN, Fast Move LS9 8 PD. Is a rival in business. Competitors are affected by the Falconis brothers   business if Falconis brothers business going very well competitors is affected because they loose the customers. When they lose the customers they loose the money.

Others businesses- for example Empire Direct on Roundhay Road  the are have interest because Falconi’s business help them with delivery heavy, electrical items.

Usdaw unions of shops and allied workers. Employees at Falconi Brother might be in a trade unions, this means the trade unions has an interest in the business. Trade unions organisations that represent people at work. The protect and improve people pay and conditions of employment. They also campaign for lows and policies which will benefit working people.

Government- Has an interest from Falconi brothers business because they pay company tax to the government (and road tax far car, business rates for office etc)

Shareholders owners -They are depending on the business because they earning money from the Falconi brother. Partners of the business have invested money and wont a business to be successful the business have run efficiently and the managers will be committed to increasing revenues or controlling the cost of business.

Bank- Is interested in the success of Falconis Brothers business because they pay money to the bank and bank get interest when the business takes out a loan. If the business is successful, more money will come into the bank.

Customer- benefit when Falconi’s business is successful they will get quality and good services from them. Customers will expect products and services to be safe and reliable.  

Local Community-If Falconis business is successful they can get good service as customers and they can get jobs as employee, Sometimes the impact is positive for falconi brother business may be one of the few secure of employment in an area of high unemployment and they can get a job.

Employees- Can get more opportunity for getting job with them. They also get wages, The employees are very important group who have an interest in falconi brothers business. They will rely upon the falconi brother business to provide them with a regular wage or salary. They hope for job security and safe working conditions and perhaps training.

Garage-Take benefit from them because if Falconi have a good business they will buy more cars and the garage will service Falconi’s cars

Suppliers- Is firms that supply that falconi brother business with raw materials components packaging or services will expect to be paid promptly. They maybe also rely upon regular orders to ensure the success of their own business.

Creditors- creditor is a person like falconi brothers owed money, the money for the vans or to business grown well. For example, a bank or a company that gives out mortgage to falconi brother is a creditor. In this case, the creditor is loaning money in exchange for collecting interest payments on the principal. An investor that holds a bond is also considered a creditor.

Society- is a group of humans from a semi-closed system, in which most interactions are with other people belonging to the group. A society is a network of relationship between people. A society ia an interdependent community.

Stakeholders can be divided into internal stakeholders and external stakeholders. Internal stakeholders are those individuals or groups within  the organisation.

  • A shareholder is someone who holds shares in the company. So the shareholder is an investor.

    European governments and companies are now using the term "stakeholder" to mean anyone at all who is affected by what a company does or in some way sticks his nose into the company's affairs. From what I'm seeing nowadays, this means not only investors, but also workers, government bureaucrats, people who live in the same city as a corporate facility, angry groups of activists, people who "care" about something tangentially related to the company. In other words, the way they use the word, a stakeholder is pretty much anyone who says he's a stakeholder.

Person group or organization that has direct or indirect stake in an organization because it can affect or be affected by the organizations actions, objectives and policies. Key stakeholders in a business organization include creditors, customers, directors, employees, government, owners, suppliers, unions and the community from which the business draws its resources. Although stake-holders are usually self-legitimizing all stakeholders are not equal and different stakeholders are entitled to different considerations. For example a firm’s customer is entitled to fair trading practices but they are not entitled to the same consideration as the firm’s employees.

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Conflicts Between Stakeholders

Having identified the main responsibilities the business has to each stakeholder, see if you can work out where conflicts might arise. These conflicts will arise when the interests of one stakeholder group are opposite to that of another stakeholder group.

For example Employers seeking higher wages might conflict with the desire by management to cut costs to boost profit and thus satisfy their own ambitions and meet the needs of the shareholders.

This student written piece of work is one of many that can be found in our GCSE People in Business section.

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