The effect of change on stakeholders Flashcards
stakeholders
are those individuals or groups that might be impacted by the activities of a business, meaning they have a vested interest.
owners
are those individuals who have bought a share in a business or established a business either on their own or with with partner/s.
Owners (positive impact)
increase in return on investment over time
Owners (negative impact)
in the short term the change can have a potential cost to the business this may lead to a decrease in profit.
Some owners may be asked to invest more money to pay for the changes.
Managers
the people who have the responsibility for successfully achieving the objectives of the business,
Managers (positive effects)
opportunities to develop new skills or advance careers may be created
financial or non-financial rewards provided if change is successful
Managers (negative effects)
increase workload, lead to stress
loss of job and financial security
reduced roles and responsibilities
Employees
individuals who work for a business by completing allocated tasks.
Employees (positive impact)
new opportunities and responsibilities can improve employees job satisfaction.
Better employment conditions or rewards can be provided if business change is successful
Employees (negative impact)
many need to develop more complex skills and knowledge to keep their jobs which can increase stress levels
May lose their job and financial security due to the change
Customers
people who purchase goods or services from a business.
Customer (positive effect)
better products or service quality can increase customer satisfaction
the practice of CSR may increase customer satisfaction
Customer (negative effects)
lowering quality to save on costs or production may frustrate customers and reduce satisfaction
increasing the price of goods or services may frustrate customers and reducing satisfaction
suppliers
sell raw materials and resources to other businesses for their production.
Suppliers (positive effect)
may increase the amount of resources demanded by business which can increase sales for a supplier
Suppliers (negative effect)
may decrease sales if businesses decide to switch to a different supplier or lower their volume of orders
may require adjustments in processes and supplies offered to meet the requirements of a business change
General community
made up of individuals who do not directly interact with the business
business operate within communities that are effected by their activities therefore they have an impact on their local economy. every aspect of the business has a impact (neg + pos) on the society
General community (positive effect)
creation of more jobs can increase employment rates and improve society’s well being
increases customer traffic and sales of surrounding businesses if change involves opening or expanding into new areas
General community (negative effect)
loss jobs may increase unemployment rates and decrease society’s ell being as poverty levels will rise
contemporary example
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