A stakeholder is “a person, group or organization that has interest or concern in an organization.” http://www.businessdictionary.com. Stakeholders are affected by the operations of the business and if the business is successful or unsuccessful. Internal Stakeholders Internal stakeholders are stakeholders who “benefit directly from their contributions to the growth of the company.” http://www.investorwords.com The internal stakeholders in a business are: • Workers. If Mickey’s or Speedy Pepper started making little profit and starting making a loss then they may have to reduce the number of employees that they have working for them. Workers want to have high wages and a stable job which can’t be done without a good cash flow and a successful business. Employees will also be interested in whether the company offers retirement benefits and employment (career) opportunities. • Shareholders. Businesses who sell shares on the stock market sell them to shareholders that own a percentage of the company. Their percentage can decrease if the company starts to experience cash flow problems but they are paid dividends once or twice a year if the business makes a good profit. Mickey’s and Speedy Pepper don’t currently have any shareholders as neither of them has sold shares on the stock market. • Directors. If a Public Ltd. or Ltd. Company starts to become less successful then the director of the company could be fired which would give them a bad reputation. However, if the company starts to become increasingly successful the director will receive large financial pay-outs as a reward. There are no directors at Mickey’s or Speedy Pepper as neither of them are a Public Ltd. or Ltd. Company, they are privately owned. • Owners. Mickey’... ... middle of paper ... ...mportant for boosting sales, revenue and profit. Conflict between stakeholders There are many differences between internal and external stakeholders as they have an interest in business for different reasons. Internal stakeholders are primarily concerned about the amount of revenue the business is making, in order to make a good profit and ensure the business isn’t at a loss. Also, they want the business to survive so jobs and money isn’t lost. External stakeholders are interested in the value of the company and how much disposable income the business has. This is the bigger picture. They are not concerned about how the business operates but the result of a business and how successful it is. If a business is failing then stakeholders will detach themselves from the business. Works Cited http://www.investorwords.com http://www.businessdictionary.com
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
Internal Stakeholder are entities with a business which include general group such as manager and employees. For example, the procurement function may have to market itself to senior management or management teams, or may have to communicate changes in purchasing policy and procedures to all staff.
Each party plays his parts – Role of key players like owners, Board of directors and staffs
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
Stakeholder analysis is important for successful implementation of projects and/or strategic activities within any organisation. It is used to analyse the stakeholders in order to understand them and classify them according to their power, influence and interest. Stakeholders are people who have an interest in a commercial entity including those within the organisation and outside. These include the boss, senior executives, customers, suppliers, government, your co-workers, the team and others. All these people are important in the implementation and success of strategy.
[1] Information was mainly taken from the Harvard Business Case Study “The Walt Disney Company: The Entertainment King”
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
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.
External stakeholders that are affected in some way from the decisions of the business include customers, suppliers, community, trade unions, and the government. Customers may chose not to purchase ...
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.
Stakeholder is any groups or individuals that are affected by the attainments of the organisation’s goals. [] In this situation Coca-Cola situation we can determine following group of stakeholders. They include local communities, employees, customers, suppliers, competitors, countries, law, and government regulatory parties.
2. External Users: are potential investors, banks, government agencies and other parties who are outside the business but need financial information about the business for a diverse number of reasons.
Internal sources of finance are finances discovered within the business. For example, profits can be reserved back to finance growth. On the other hand, the company can sell items it owns that are no longer required to free up money. External sources of finance are discovered exterior the business, for example from creditors.
The business environment that firms operate in can be divided into the internal environment and the external environment.
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.