Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Relationships with stakeholders in businesses
Don’t take our word for it - see why 10 million students trust us with their essay needs.
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.
One of the stakeholders group is customers. As they are the most important part of the business, without them you cannot operate the business. If u doesn’t have customers for whom will you produce? They just want high quality product at fair prices and good services. By building up the second runway they will be able to fly more flights and more customers will be attracted as they can easily get the ticket. The price of tickets might rise as the demand will rise which customers will don’t want. It will be convenient for their customers as there will more choices of airline flying there, they can choose amongst them.
The second stakeholder group is shareholders. The shareholders employ people to run the company on their behalf. They have nothing to do in the business, they are just investing in the company and they are only concerned about their dividends which they get as a profit in the end of the year. In this case they will be quite happy because as the building of the second runway profits will rise and they will get more dividends. They just want to use cost-effective production i.e. reduce the costs as much as possible in order to build the second runway and make the prices higher.
In this assignment I will discuss about key stakeholders who influence the purposes of two business, the business I have chosen are Tesco and Oxfam. Also, I will be talking about interest owners, customers, suppliers, employees, trade unions and employer associations have in the business. Another point I will be talking about is why business must consider local communities and pressure groups when operating their business.
...hrow’s and Gatwick’s airport expansion in order to have overall growth in the company’s future.
In this essay I will be writing about the stakeholders of both The IPO and Waitrose. I will also be evaluating the impact of different types of stakeholders in one of these companies. Stakeholders can be any person or organisation that has an interest in the activities, goods and services of a business.
Key stakeholders of British Airways include customers, employees, those who have invested in BA by buying shares of the business as well as corporate organizations. To analyze the stake holders in BA the power/interest matrix (Gardner et al, 1986) can be applied in terms of its power and matrix. Brand reputation, economy of scale and cost control are some the key success factors of BA. In addition to Boston Matrix can position BA’s business in terms of short haul (cash cow business) and long haul (star business).
Since the year 1980, a number of airports have attained significant developments. The capital developments were made possible through funding boosts made by the Federal government. This is through grants. The grants are usually given through the Airport Im...
Stakeholders and stockholders are a group of individuals that can affect the company and also are affected by the company. In order to be a successful company needs to maintain their investor’s confidence. Stockholders are also able to develop value for the customer because they invest on ideas that will produce success for the company. Stakeholders are all the individuals that have an interest in the company such as employees, customers, and the surrounding community.
This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman argued that “neo-classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and their shareholders and that only by doing so can business contribute to wealth for itself and society at large”. On the other hand, the theory of stakeholder suggests that the managers of an organisation do not only have the duty towards the firm’s shareholders; rather towards the individuals and constituencies who contribute to the company’s wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees, customers, local community and the suppliers (Freeman 1984 pp. 409–421).
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...
There are two types of stakeholders: primary stakeholders and secondary stakeholders. The primary stakeholders who are affected in this scenario are the employees, shareholders, customers, board of directors, and the managers… Meanwhile, the affected secondary stakeholders are the Environmental Protection Agency, competitors, local hospital, local municipal landfill, local newspaper, community, and environmental groups.
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
The competitive advantage of an airport depends on five core factors, namely the Spatial, Facility, Demand, Service and Managerial factor. The Spatial factor refers to the level of regional development surrounding and around the airport, for example, an international trade zones, convention centres, and other facilities. Facility factors are the level of facilities and the airport’s ability to expand and increased its facilities. Demand factor refers to the level of origin-destination demand and that of transit and transfer traffic volumes for hub-and-spoke network. Service factor refers to the...
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
First, an extra runway can expand the capacity of the airport to satisfy the expected strong traffic demand. Facing the rise of many developing countries in Asia, especially China, the total number of passengers and cargo of HKIA in 2030 will be doubled of 2012 (AAHK 20). The expansion into China’s market, which is crucial to establish greater network to stay advantageous over its competitors, also requires higher air-traffic capacity. Yet, under the existing two-runway operation, the airport will be saturated by 2020 that would lead to great economic losses without further expansion (AAHK 24). In fact, Hong Kong has embedded with geographical advantages that not only as the significant gateway to China, but also being able to reach half of the world population within five-hour. Airbus (22) predicts Asia as ...
Stakeholders are interest of an individual or groups that directly or indirectly affected by the organisation’s activities, policies and objectives (Henry Frechette, 2010). Stakeholders can be divided as internal (managers and employees) and external (shareholders, customers, and suppliers) (BPP F9). Different stakeholders may have common interests or conflict interests with company. Company board members or management must take care about stakeholders’ interest. They can’t make the decision based on their own interest or their relation with others organisation. Conflict of interest will arise when interests of organisation act in concert with managers’ personal interests or interests of another person or organisations, (Anon, no date).
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.