Unit 2 STakeholders of Cadburys

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Unit 2

Criterion -1

Stakeholder definition – A Stakeholder is individuals or organisations that are directly and indirectly affected by the company’s decisions.

Stakeholders can dramatically affect a business, whether they are internally or externally linked to the business. Cadbury has a large range of stakeholders as they are a large company so they effect more organisations and individuals than a smaller company. The company needs to keep all of its stakeholders happy to ensure the company runs smoothly.

Employees are stakeholders of Cadburys as they are affected in the day to day running of the business, some more then others; this means employees at Cadburys are called internal stakeholders. Cadbury’s has a tradition of encouraging direct, two-way involvement and communication with employees. Managers hold regular individual and team meetings to inform colleagues about the business and hear their views. The company also conducts surveys to check how its employees feel about working at Cadbury’s. Internal newsletters, a group website and many local websites help employees keep up to date with what is going on. This helps Cadburys engage its employee stakeholders and can make sure that the employees are satisfied in what actions Cadbury’s takes. Employees at Cadburys are directly affected by the decisions Cadburys makes, for instance, Cadburys invested in new technologies to make the work more efficient and time conservative but the employees at Cadburys needed training to use the new equipment.  

Consumers are a stakeholder of Cadburys as they are affected by the decisions that are made in the company, for instance, if Cadbury decided to change the recipe for there chocolate the consumers would want to know what had changed as it may affect the quality of the product and could result in the product not being desirable for the consumer. Consumers are an external stakeholder of Cadburys which means they are not directly linked with the company as they do not work at the company. However, employees at Cadburys can also be consumers of Cadburys products and be internal to the company because they work their. Consumers are interested in Cadburys activities as they purchase Cadburys products, in turn the consumers want the best possible price and quality for what they are purchasing.

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Shareholders are a stakeholder in Cadburys as they have an interest in the company and want it to succeed in its targets so that the share price goes up. Cadburys has over 60,000 registered share holders which include private individuals as well as large institutional investors like banks and pension funds. Shareholders are entitled to attend an annual meeting in which they have the opportunity to ask questions, discuss the company's performance and vote on certain issues. Shareholders can be internal and external to Cadburys. An employee at Cadburys could still own shares in the company, and be internal, ...

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