Assignment 2.1An introduction to the business environmentStakeholdersA person or an organization that has interest orconcern in an organization or business.
Stakeholders are those who can be bothaffected by the business or affect the business by the actions made but theorganizational. They continue to influence the business activates to get theirneeds and goals achieved. They focus on increasing profit, market share andprovide good quality service.In a business a stakeholder is mostly the investor ina company whose action or decision will determine the outcome of theirbusiness. Stakeholders don’t have to be equity with the shareholders. They canbe the employees of your company, partners who have a hand in your company’ssuccess and incentive for your products to succeed stakeholder are those groupsof people with their support the organization would cease to exist.Here are some examples of stakeholders:1.
Creditors2. Directors3. Employs4. Government5. Community6. SupplierThis stakeholder’s presence can affect the purpose ofthe organization by their interest or power for example:KFCStakeholder:EmployeeTheycan influence the success of an organisation by their productivity andefficiency in their job and tasks they do every day. Motivating your employeeswith fringe benefits, proper training and deligation helps you deliver a bettercustomer experience.
Encouraging employees at all levels to make quick decisionsand take on more responsibilities not only makes them feel valued, but it canalso improve their efficiency inresponding to customer needs.Government They caninfluence a business by introducing new laws that can affect their operationssuch as n raise Corporation Tax which would eat into a company’s profits andcancel the licences of the company if the food quality is not good for thecustomer. Lulu supermarketCustomer They are the key stakeholders. Companies that ignore the concerns of theircustomers find themselves losing sales to rivals.
Customer requires goodquality and service from the employees. If the customers are not well satisfiedthey can boycott the market and give bad feedback to other customer which woulddecrease their market share and sales.SuppliersThey can decide whether to raise prices for orders which can obviouslyaffect the company’s profits and supplier’s reliability could affectproduction. If orders do not arrive on time products may not be ready forshipping to the customers.
Suppliers can also change credit terms which willhave cash flow issues for the business and they could decide whether to give discountsto the customer for bulk orders or loyal customers.