Stakeholders - Business and communication systems

Stakeholders - Business and communication systems

1. Stakeholders are people who have an interest in a business, they can be individuals or a group of people

2. Different stakeholders

   • Employees
     • They are interest in their job security and promotion prospects, they also want to earn a decent wage and have plesent working conditions, all grades and jobs are affected by the business.
     • If the company succeeds
       • More likely to get better pay
       • Chance of promotions
       • better facilities
     • If the company fails
       • Threatens their job
       • freeze their pay
       • Possiblt cut their wages
   • Customer/Consumer
     • Customers have a stake in any business/company from which tye buy their goods and services
     • They want low prices
     • best quality available
     • good service
     • innovative products
   • Owners and shareholders
     • They are the most important stakeholders as they get to decide what happens to a business
     • want to make money
     • interested in making a profit
     • want a good dividend
     • want their shares to increase in price
   • Suppliers
     • if the company succeeds
       • more orders for them
       • more success for their own business
     • if the company fails
       • falling orders for them
       • less profit
       • job losses
   • the local community
     • creates jobs
     • the local area will suffer
     • the buciness might buy from local suppliers
     • might provide a service to local people
     • could pollute local environment
   • the government
     • when a company succeeds
       • the company pays taxes, the more it makes the more tax they pay
     • if the company fails
       • workers are unemplyed
       • the government have to pay unemployment benefit

3. conflict

   • an owners desire to maximise profits can cause conflict with employees
   • conflict between managers and workers lead to industrial action
   • poor communication between stakeholders can lead to reduced morale
   • products need to satisfy the customer but still be profitable
   • government introduces laws to protect customers and workers.