chapter 1. People in business

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stakeholders and their Relationships

In any business there are a number of stakeholders-

stakeholders are anyone who is affected by a business.

they have a vested interest in the survival and financial wellbeing of a business.

internal to the business eg. employers and employees.

external to the business eg. shoppers and delivery companies.

Types of relationships between stakeholders- constantly changing (dynamic)

COMPETITIVE RELATIONSHIP-

Win/lose relationship, one party in a business wants to be more successful than another and they pursue different objectives.

examples-

employer and employee- an employer does not pay their employee fair wage.

investor and entrepreneur- investor gives capital to the entrepreneur and the entrepreneur does not give any or a good return back on their investment.

COOPERATIVE RELATIONSHIP-

Win/ win relationship, work together to achieve their goals and have the same objectives.

examples-

employer and employee- employee does a good job and employer pays them a fair wage on time.

invester and entrepreneur- an investor provides the capital/investment for the entrepreneur and receives a good return on his investment.

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INTEREST GROUPS-

IFA- irish farmers association

- was founded as the NFA 6th January 1955

- has 70,000 members

- provides representation, support and advice to members on an individual basis.

ASTI- association of secondary school teachers Ireland

- established in 1909

- Ireland's main second level teachers union

- represents 18,500 teachers in Ireland

- voices concerns and interests of teachers for improvements in their pay and conditions in their employment.

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Termination of a contract- a contract can be terminated or ended.

performance- if both parties have carried out their side to the contract.

eg. ronaldo does his 3 years with Man U.

Breach- when one party fails to carry out their side of the agreement (breaking a condition in the contract)

eg. ronaldo fails his drug test.

Agreement- both parties decide to end the contract

eg ronaldo is playing poorly and may agree to a free transfer.

Frustration- this is when an unforeseen event takes place which makes the performance of the contract impossible

eg. ronaldo passes away suddenly during his contract.

Remedies of a breached contract- remedies for INJURED party:

Damages- injured party can sue for damages to compensate for the value lost.

Rescind the contract- injured party or court can cancel the whole contract.

court- if contact work is not started on time the court can rescind the contract.

non- court- you return a damaged good to a store and they give a refund.

Seek specific performance- asking the court to instruct the other party to go through with the original contract as agreed.

eg. construction company left one job for another job the court can order a specific performance.