The effect of change on stakeholders

Question 1

stakeholders

Answer 1

are those individuals or groups that might be impacted by the activities of a business, meaning they have a vested interest.

Question 2

owners

Answer 2

are those individuals who have bought a share in a business or established a business either on their own or with with partner/s.

Question 3

Owners (positive impact)

Answer 3

increase in return on investment over time

Question 4

Owners (negative impact)

Answer 4

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.

Question 5

Managers

Answer 5

the people who have the responsibility for successfully achieving the objectives of the business,

Question 6

Managers (positive effects)

Answer 6

opportunities to develop new skills or advance careers may be created

financial or non-financial rewards provided if change is successful

Question 7

Managers (negative effects)

Answer 7

increase workload, lead to stress
loss of job and financial security
reduced roles and responsibilities

Question 8

Employees

Answer 8

individuals who work for a business by completing allocated tasks.

Question 9

Employees (positive impact)

Answer 9

new opportunities and responsibilities can improve employees job satisfaction.
Better employment conditions or rewards can be provided if business change is successful

Question 10

Employees (negative impact)

Answer 10

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

Question 11

Customers

Answer 11

people who purchase goods or services from a business.

Question 12

Customer (positive effect)

Answer 12

better products or service quality can increase customer satisfaction
the practice of CSR may increase customer satisfaction

Question 13

Customer (negative effects)

Answer 13

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

Question 14

suppliers

Answer 14

sell raw materials and resources to other businesses for their production.

Question 15

Suppliers (positive effect)

Answer 15

may increase the amount of resources demanded by business which can increase sales for a supplier

Question 16

Suppliers (negative effect)

Answer 16

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

Question 17

General community

Answer 17

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

Question 18

General community (positive effect)

Answer 18

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

Question 19

General community (negative effect)

Answer 19

loss jobs may increase unemployment rates and decrease society’s ell being as poverty levels will rise

Question 20

contemporary example

Answer 20

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