5J Flashcards
change and stakeholders
Effects of change on owners. Positive and negative effects
Positive=
* A successful business change can provide a business owner with an increased return on their investment and greater financial security.
* Business change can provide opportunities for business owners to use their leadership skills to connect with employees and develop stronger interpersonal relationships.
* A business owner may be perceived more positively by employees if they implement change successfully
Negative=
* If change is unsuccessful, a business owner may experience personal and financial implications.
* A business owner may become overwhelmed and stressed by the increased workload and responsibilities that may be associated with business change.
* A business owner may be resented if employee roles are made redundant or significantly changed, negatively impacting the business’s corporate culture.
Effects of change on managers. Positive and negative effects
Positive=
* Business change can provide opportunities for a manager to develop new skills or advance their career.
* A business may provide a manager with financial and non-financial rewards if the change is successfully implemented.
* A manager may be provided with increased authority and responsibility, leading to further increases in their skills and employability.
Negative=
* Increased workloads associated with change can lead to stress which may negatively impact a manager’s wellbeing.
* If a business change is unsuccessful, a manager may lose their job and financial security
Effects of change on employees. Positive and negative effects
Positive=
* Employees may be provided with new responsibilities and opportunities for career advancement that improve their motivation and overall job satisfaction.
* If a business change is successful, employees may experience improved job and financial security.
* Employees that have contributed to the implementation of successful change may be provided with financial and nonfinancial rewards.
* A business change may require employees to undertake training to provide them with a different set of skills, helping improve their future employability
Negative=
* A business change may require employees to develop complex skills and learn difficult processes, which may increase stress levels and negatively impact their wellbeing.
* If a business change is expected to result in redundancies employees may fear for their job or financial security.
* A business change may require some employees to take on increased responsibility within the workplace which may negatively impact their performance if they are not prepared for this role.
Effects of change on customers. Positive and negative effects
Positive=
* If change improves the quality of a business’s goods and services, customers may experience increased satisfaction.
* Customer satisfaction may increase if the change allows the business to offer lower prices for its goods and services.
* Customers may experience greater satisfaction from a business that implements new strategies to demonstrate corporate social responsibility
Negative=
* A business that sources cheaper inputs to reduce business costs may compromise the quality of its product, leading to customer frustration and reduced satisfaction.
* Customers may be dissatisfied if a business change increases the price of its products.
* If a business discontinues or changes a good or service, customer satisfaction may decrease if the new product fails to meet their needs.
Effects of change on supplies. Positive and negative effects
Positive=
* Supplier demand may increase if a business requires a greater amount of resources to meet its production needs.
Negative=
* If a business decides to switch to a different supplier or discontinue a product, a supplier’s sales may decrease due to a lower volume of orders from the business.
* A business change may require its suppliers to involuntarily adjust their processes to meet the new demands of the business
Effects of change on general community. Positive and negative effects
Positive=
* If a business change creates job opportunities, local employment rates may increase which can improve the overall wellbeing of society.
* Business change that involves opening or expanding into a new area can increase customer traffic and sales for surrounding businesses.
* When a business change is successful, a business has a greater ability to contribute to local social causes.
* Business change that involves reducing waste can reduce the business’s environmental impact and improve overall living standards for the general community.
Negative=
* A business change that results in redundancies may increase local unemployment rates and poverty levels, thus negatively impacting societal wellbeing.
* If a business change involves store closure or relocation, customer traffic and sales for surrounding businesses may decrease.
* If a business change involves switching to an overseas supplier, transporting inputs from another country can have a negative impact on the environment.
what are stakeholders
are individuals, groups, or organisations who have a vested interest in the performance and activities of a business. MAKE SURE TO SAY VESTED INTEREST
Define owner
are individuals who establish, invest, and have a share in a business, often with the goal of earning a profit from its operations. In public listed and private limited companies, owners are known as shareholders.
Define mangers
are individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives.
Define employees
workers that have a vested interest in completing the tasks allocated to them by managers to achieve organisational objectives.
Define customers
are individuals or groups who interact with a business by purchasing and utilising its goods and services.
Define suppliers
are individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.
Define general community
The external parties who have a vested interest in the business who do not directly relate to the business.
whats are the Stakeholder owner interests
-Financial position.
-personal reputation position.
what are the Stakeholder Manager interests
-job security position.
-Financial position.
-personal reputation position
