STAKEHOLDER AND ITS IMPACT ON ORGANIZATION
Greenwall Development LTD. is one of the famous organizations in Georgia. Understanding customer’s needs made them popular among society. Newly created company had many barriers to get over in order to be successful. The barriers found in internal and external stakeholders. Internal stakeholders are: Employees, owners and managers. Potential external stakeholders can be called: Society, government, customers, shareholders, suppliers and government. All of the stakeholders are important to be discussed, because they all have an influence and impact on the organization but the main stakeholder who has the biggest impact on Greenwall Development LTD. is the government.
Nowadays if a person is asked what affect the government has on them personally, most of the answers will be negative. If government and politics have bad influence on people, it is possible that the same situation is in organizations.
Usually political environment is unpredictable. Especially in business environment, political environment can be less predicted. If the government changes and as in democracy, people replace one political party with another, the new party might have different vision of the future. Plans may influence capital gains tax, pasty tax and etc.
Each organization has to monitor the political environment, in order to avoid any problems. If there is a stable political environment in a country, it will attract foreign investors. But if the situation is unstable, foreign investors may withdraw their business from a country. Government passed legislation has a big impact on relationship between organizations and clients, suppliers, competitors and etc. This relationship is impacted by following ex...
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...ience. This is the first Hilton Hotel in Georgia which could not be constructed because of financial problems. So Greenwall Development LTD. has chance to show their excellence.
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Regarding to organizational stakeholders, there are three main groups of stakeholders: customers, employees and investors. The company attempts to link stakeholders’ needs and expectations to the company’s goals. For customers, the company must treat them fairly and honestly. For employees, the company needs to treat them fairly, make them a part of the company and respect their needs. For investor, managers should comply with the accounting procedure, do not manip...
Political and legal considerations were given first priority in this analysis with primary emphasis given to whether a country's legal or political system prohibits or impedes foreign investment. If a country's political or legal system discouraged or prevented foreign investment, that country was disqualified from further consideration. Factors considered when assessing the political and legal environment:
Heilbroner, Robert. "The Economic Problem." The Making of the Economic Society. Englewood Cliffs: Prentice Hall, 1993. pp. 1-15
There is need to think of all people who are to be affected by the project or strategy, those who have influence or power over it or have an interest in its successful or unsuccessful conclusion. Stake holders for Delta corporation include:-
Individuals and groups can engage in office politics. On one hand this can be highly destructive when individuals focus on personal gains at the expense of the organization. This causes negative influence on social groupings, cooperation, information sharing, and other organizational functions. So this is why it is vital to pay strict attention to office politics and create the right political landscape.
Stakeholders are individuals, groups, and organisations with the power to influence the delivery of an organisation’s strategy and thus the organisation’s performance and/or a significant interest in an organisation’s strategy and thus the organisation’s performance (Wisniewski, 2001; Ackermann & Eden, 2011). In the context of the draft BSC to be developed, however, the analysis shall focus on relatively aggregated stakeholder groups. Firstly, the aim of this stakeholder analysis is not to pinpoint individual persons as stakeholders who may then be managed more easily than large organisations, but to identify rather broad stakeholder groups interested in Zara’s performance. Secondly, addressing
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
There are three main political risks that can be encountered when moving business overseas which are: confiscation, expropriation, and domestication. Each of these risks can have significant adverse effects on a company that is trying to expand into foreign countries. Of the three, confiscation is considered to be the most severe political
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government. Here steps in international law. International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient features of political features of global markets they plan to enter. THE SOVEREIGNITY OF NATIONS From the international laws point of view a sovereign state is independent and free from external control; enjoys full legal equality; governs its own territory; selects its own political, social, economic systems; and has the power to enter into agreements with other nations. It is extension of national laws beyond a country's borders that much of the conflict in international business arises. Nations can and do abridge s...
History of Hilton hotel has been very interesting as it started as Mobley Hotel in year 1919 a small building. Because, when the company started it had no plans or ideas of expanding, the sole purpose was to serve as a place for the travelers to stay where they can comfortably enjoy a night or few and carry on towards their journey. After twenty-seven years of business and hard work, this small hotel went nationally in eleven states within United States, known as Hilton. Currently they have four thousand worldwide properties, either directly owned or franchised (including third party), in seventy-eight countries. Hilton even though allows franchises but there policies remain the same and direct Hilton officials do all the upper level management. The company name Hilton understands for Hosp...
Marketing strategy is deeply affected by political trends. Issues like new laws, regulations, change in foreign policies etc brings change to t he bus...
Fulcher, J. and Scott, J. (2003) Sociology, 2nd ed. New York: Oxford University Press, 2003. Giddens, A. (1992) Human Societies: A reader, Polity Press: Cambridge. Giddens, A., ed., pp. 113-117.