Evaluate the influence different stakeholders exert in one organisation. In this assignment I will be evaluating the influence different stakeholders have in one organisation. A stakeholder is someone who takes an interest in a business whether it being small or big. For example, in Nike, a stakeholder could be an employee or a customer as they would have to take massive interest in the business. Out of the two businesses I chose for P2 and M1, I will choose newsagents. The first stakeholder I will evaluate is customers.
In a newsagent, customers are the businesses main source of finance; this is because the customer’s main influence is to buy the newsagent’s products and services. Customers are external stakeholders which mean they influence or are influenced by the business but are not a part of it. The main reason for people being stakeholders would be for financial reasons and customers are no different. Customers go to newsagents because they can provide local convenience by selling cheaply priced goods and services that maybe supermarkets such a Sainsbury’s and Tesco’s may sell at a higher price.
The biggest influence that a customer does which would help a business such as newsagents flow is customer loyalty. This means that a customer regularly visits the shop for whatever they may need. What this does is create a friendship between the customers and business which means that the customers will happily come back to the business, knowing they will be treated nicely and with respect from the business. When a newsagent and customer have a good working relationship, customers can reap from rewards.
I know from experience that if a customer may be running low on money, some newsagents, if they have been a customer for a long time, will allow the person to run a tab. This comes from good customer loyalty and a good customer-business friendship. The next stakeholders I will be evaluating are the employees of the business. Employees are internal stakeholders which means they are influenced or an influence on the business and are a part of the organisation. The employee’s main influence on the business is to help sell the products and services provided by the business.
Employee’s want to help their workplace financially grow or maintain a balance so they can continue to get paid, because if the customers were not good at helping the business grow it is most likely they would get fired. This means that now they have no financial income to help them live. In most cases, newsagents are run by families so it would be unlikely the employees would provide bad services to the customers, and prevent the business from reaching financial goals. Employees can have a major influence by giving added value to customers.
What I mean by this is if an employee was to help a customer out whether it was setting up a tab, or just helping around the shop, what this could do is make the customer feel as if the business always has the customer’s best interests at heart. This could lead to repeat purchases and also customer loyalty. The customer is a newsagent’s main source of finance, and looking after their best interests is one of the employee’s main aims. The next stakeholders I will be evaluating are the owners. The owners, just like the employees are internal stakeholders.
One of the owner’s influence on the business would be to control the financial side of the business. This means that they are able to decide on what products to buy for the business, how they deal with costs such as heating, lighting etc… What owners want the most is for profit to be successful and that they can continue to make money. They do this by finding a gap in the market and bringing local convenience to the community surrounding the business by selling cheaply priced products and services. This leads to attracting new customers to increase revenue and profit.
The main influence that an owner has on a newsagent would be is having a big say in how the aims of the business are decided, but other groups also have an influence over decision making. For example, the directors who manage the day-to-day affairs of a company may decide to make higher sales a top priority rather than profits. This shows the sense of direction for the business, you normally get this through the mission statement which the owners would decide. The next stakeholders I will be evaluating are the suppliers. Suppliers are one of the most important stakeholders for a newsagent, as they are the source of the businesses inventory.
Suppliers are the organisation that provides products for newsagents to resale. What suppliers hope for is that the products that they offload onto the newsagents are among favourite brands and that the newsagents carry on to buy from them, this leads to a healthy work relationship between suppliers and newsagent, also a healthy profit is being made by the both businesses. Another stakeholder to evaluate would be the government. The government are external stakeholders, this means that they are interested in the business but from the outside. The influence that they would have on a newsagent would be that they have to pay tax to the government.
This means that to keep their business up and running they would have to pay taxes to keep the government happy. They also influence by setting up fees such as VAT. This adds on to profit of the business but also to give money towards the government. The government prefers that the business works out well so they can pay tax and there can be less unemployment. Last stakeholder to evaluate would be the local community. Now with a news agent the local community could consist of many stakeholders such as customers, suppliers and owners.
They influence the business in many ways that has been previously explained. They hope for the business to do well as it would work out for all of them. For customers it means that they are able to buy quality products at a convenient price, for suppliers they hope for a good working relationship which leads to both businesses doing well and making profit. To conclude, stakeholders are very important in any business as they can either have major or small influences on a business, this helps a business to meet aims and objectives but also to please any stakeholder connected to the business.