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

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

1. Advantages of Growth for Stakeholders

   • Employees may have more job security and receive greater rewards if the business is doing well.
   • Suppliers may receive more orders as the business needs more supplies.
   • The local community may benefit because as it grows more employees will be needed, and these may come from the surrounding area.
   • The government will benefit as it will receive higher taxes and there will be less unemployment in the area.

2. Disadvantages of Growth for Stakeholders

   • Suppliers may be bullied by a bigger firm and have their prices pushed down.
   • Employees may no longer feel valued by the business as they are not as important in the larger scheme of things.
   • Employees may also feel that they aren't as informed as they used to be as communication become harder.
   • The business may not invest in the community and may choose to get its labourers from overseas as they are cheaper.
   • The government won't benefit if the business moves some of its production overseas.

3. How can Stakeholders protect their interests?

   • Lobby government - Can try and get the government to force the business to change its policies or prevent it from getting bigger.
   • Boycott the products - People may stop buying the products made by the business if they feel that they aren't being treated properly.
   • Employees can strike so the business loses money.
   • 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.
   • If shareholders don't like what the business is doing then they can vote against their plans or can sell their shares completely.