An introduction to the business environment
A person or an organization that has interest or
concern in an organization or business. Stakeholders are those who can be both
affected by the business or affect the business by the actions made but the
organizational. They continue to influence the business activates to get their
needs and goals achieved. They focus on increasing profit, market share and
provide good quality service.
In a business a stakeholder is mostly the investor in
a company whose action or decision will determine the outcome of their
business. Stakeholders don’t have to be equity with the shareholders. They can
be the employees of your company, partners who have a hand in your company’s
success and incentive for your products to succeed stakeholder are those groups
of people with their support the organization would cease to exist.
Here are some examples of stakeholders:
This stakeholder’s presence can affect the purpose of
the organization by their interest or power for example:
can influence the success of an organisation by their productivity and
efficiency in their job and tasks they do every day. Motivating your employees
with fringe benefits, proper training and deligation helps you deliver a better
customer experience. Encouraging employees at all levels to make quick decisions
and take on more responsibilities not only makes them feel valued, but it can
also improve their efficiency in
responding to customer needs.
influence a business by introducing new laws that can affect their operations
such as n raise Corporation Tax which would eat into a company’s profits and
cancel the licences of the company if the food quality is not good for the
They are the key stakeholders. Companies that ignore the concerns of their
customers find themselves losing sales to rivals. Customer requires good
quality and service from the employees. If the customers are not well satisfied
they can boycott the market and give bad feedback to other customer which would
decrease their market share and sales.
They can decide whether to raise prices for orders which can obviously
affect the company’s profits and supplier’s reliability could affect
production. If orders do not arrive on time products may not be ready for
shipping to the customers. Suppliers can also change credit terms which will
have cash flow issues for the business and they could decide whether to give discounts
to the customer for bulk orders or loyal customers.