AQA GCSE Business - Unit 2 - Expanding a Business - Growth and Stakeholders

Advantages of Growth for Stakeholders
1. Employees may have more job security and receive greater rewards if the business is doing well.
2. Suppliers may receive more orders as the business needs more supplies.
3. The local community may benefit because as it grows more employees will be needed, and these may come from the surrounding area.
4. The government will benefit as it will receive higher taxes and there will be less unemployment in the area.
Disadvantages of Growth for Stakeholders
1. Suppliers may be bullied by a bigger firm and have their prices pushed down.
2. Employees may no longer feel valued by the business as they are not as important in the larger scheme of things.
3. Employees may also feel that they aren't as informed as they used to be as communication become harder.
4. The business may not invest in the community and may choose to get its labourers from overseas as they are cheaper.
5. The government won't benefit if the business moves some of its production overseas.
How can Stakeholders protect their interests?
1. Lobby government - Can try and get the government to force the business to change its policies or prevent it from getting bigger.
2. Boycott the products - People may stop buying the products made by the business if they feel that they aren't being treated properly.
3. Employees can strike so the business loses money.
4. All stakeholders can complain to the business, and if they do so enough then they may be able to get it to change its ways.
5. If shareholders don't like what the business is doing then they can vote against their plans or can sell their shares completely.

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AQA GCSE Business - Unit 2 - Expanding a Business - Growth and Stakeholders

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	Created by Lewis Humphreys about 8 years ago