Stakeholders Vs Shareholders

Stakeholder – That have ‘an interest’ in the possible success or failure of the business.

·         Customers

·         Government

·         Competitors

·         Investors

·         Employees

·         Pressure Groups (organisations like WWF apply pressure to business to change their polices)

·         Suppliers

·         Media

·         Banks/Lending Organisations

·         Share Holders

How do all these affect the business?

Customers:

·         They buy the product (provide income)

·         Affect/alter reputation

·         Amount of customers effect the growth of the market

Government:

·         Can cause chaos through trails/legal procedures –health and safety

·         Declare tax rates

·         Can effect customers and employees

Competitors:

·         Take up gap in the market

·         Will rival prices in order to take your customers

Investors:

·         Invest their money into your business and expect success, if not successful, company will lose investors

Pressure Groups:

·         Affect reputation of your company if they dislike your policy – forcing the company to change work ethics – effecting pricing strategies.

Employees:

·         Put out the reputation of the company & level of service  - customer satisfaction

·         If feel treated ethnically wrong – could involve government

Suppliers:

·         If not treated right will stop supplying for company

·         If brand is not represented well can affect the pricing strategy

Media:

·         Affect how customers ‘see’ the brand

·         Attraction/distraction of employees

Banks:

·         Financial support along with investors

·         Loan availability  - leading to bad reputation if loans are not paid on time

Shareholder – Relate to both public (PLC) and private companies (LTD) & They have some form of ownership within in the company.

·        Shareholders are able to make some contribution to the decisions being made in the business

·        Receive a share of profit (if made)

·        Value of profit is based on amount of shares maintained

Public:`

·         Shares are registered on stock exchange

·         Anyone can purchase these shares

Private:

·         Shares only available to family &friends

Dividend – Share of the company’s profit (Payed twice a year depending on amount of profit and amount of shares)