P2: Describe the different stakeholders who influence the purpose of two contrasting businesses
A stakeholder is someone who has a influence on the business and how the business makes decisions. Stakeholders come in two forms primary and secondary stakeholders and both have a different types influence on the business. A primary stakeholder is a stakeholder who is involved with the business and has direct impact or benefits directly from the operations and activities of a business. For example a business employee. A secondary stakeholder is a stakeholder who has a indirect relationship with a company. They tend to not be employees or directors and don’t have any direct engagement with a company, but still be influential. For example the local community around the organisations workplace because they are people that still affect the business but are not directly involved with business internally. Stakeholders often have conflict over what is important for the business for example the shareholders want to maximize profits but for example a customor wants prices to cheap and the product or service to have better value to other competitors.
Source – stakeholdermap.com
Employees have a direct stake in the company because they earn income to support themselves, as well as the other benefits the business provides. Depending on what the business does employees might have a health and safety interest. Employees directly impact the business by working for it so keeping them happy is key to make sure employees are still willing to work for you and not someone else. To do this employees my offer bonus, extra holiday times and discounts for big brands.
Suppliers are primary stakeholders in the business as well because they are directly involved with the company they giving supplies to the business for it to operate but are also indirect stakeholders. The suppliers want their current deal with the business to stay the same and only change if it’s a better deal for them because it’s beneficial for them, to do this business has to meet projected sale forecasts and be able to pay the supplier and still make profit to make the product. So the business has to keep the current deal with supplier for as long as they can to build trust or offer them a different deal which benefits them more to keep the supplier happy and stakeholder of the business..
These people are secondary stakeholders because they don’t directly affect the production of the company or the management they just visit the business and buy products from the them ever so often. But keeping these people happy is just as important because if they are not happy they will no longer go visit the business and go somewhere else. So trying to provided them with the most value and high quality customer service that is better than the competition is important to keep them coming.
Management runs and controls the business and comes up with strategies of the business and how it runs and how it’s going to move forward. These stakeholders have direct control of how the business runs so directly impact the performance company most of the time based off their decisions. Management are paid salaries for their job and gain promotions which does effect how they feel at their current job because if the salaries aren’t competitive that means they might not be a happy stakeholder. The management is also has direct voice to the company and employees because they are seen as people who have major control over the company so what they say to the public is very important.
The government is a secondary stakeholder and doesn’t necessarily have a direct impact on the business because it’s not involved. wants the business to operate ethically, help the local community and try operate under the government’s prospects for the country. The government can also give grants to a business if they think the business is following their criteria and prospects; this can give big financial boost to the business which can help the business achieve their goals faster.
Shareholders are primary stakeholders so have a real direct impact on the company. Shareholders have a stake in the company so most of the time they want to see the profit gain more profits and don’t really care about anything else but the shareholder could a shareholder within the company which means they could care about the company. Shareholders also have a amount of voting power over the business but they are apart of the business so they will be allowed to vote at board meetings with other shareholders and management. There often a conflict between the shareholders and other stakeholders because the shareholders are only interested in profit and the other stakeholders want good customer service or a great quality product but that will mean less profit for the company. So it’s very important to have good communication between the stakeholders and shareholders to make sure they can settle their difference and find out what they both want for the business.
These are people who have personally invested, bank or venture capitalist firm this means the persons own money or the businesses is directly invested into the company. This could be for a stake of the company or they have to pay off the money in a couple of years with interest or without it depends on how safe the person or business thinks the business they are investing is.. Investors are solely looking for profit in a business and nothing else so it’s very important for business to make the projected profit margins to keep them happy. Although it’s very unlikely for a investor to back out because they will be losing money in a loss unless management makes a management buy out to buy out investors with key control over the business like Bluestone did . Like with shareholders there is normally conflict between them and the other stakeholders because the are only looking for profit and proberlay not considering the other aspects of the business. So resolving conflict for situations is very important to make the business run smoothly.
The local community are looking for the best value and best prices, local environment to stay the same. For example they want as little noise as possible at night and don’t a smelly factory near their homes. The local community wants the business to make the least environmental impact it can possibly make that’s why people support Bluestone in the local community because it benefits the local environment by using green energy and little fossil fuels as possible into the atmosphere by using bio fuel and other green power sources, by doing they achieved the Green Dragon Environmental Standard. For a charity like Cancer Research UK they wouldn’t have to worry about community because they are not local based
-bluestone and cancer research UK
-intro about stakeholders and what they are
-different paragraph for each different stakeholders groups for each business
-compare and contrast about stakeholders for the different organisations