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Discussing the Influence of Stakeholders in a business

Stakeholders are people who have an interest in the financial success of a business. The amount of influence a stakeholder has will vary depending on the size and type of the business. The influence a stakeholder has will also vary depending on their position within the business.

The owners of Peugeot have different influences on their business than the owner of Lime News has on his. Peugeot is a large PLC so there are many shareholders who have a say on how the business in run.

There is only one owner of Lime News as it is a sole trader business so he makes all the decisions on how the business is run.

There are separate managers for individual departments within Peugeot who may all have selfish interests such as promotion. The owner of Lime News also does the managerial side of things and obviously his interests will still lie in the success of the business.

The employees of Peugeot and the employees of Lime News may have similar interests.

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Employees at Peugeot may be looking for a promotion/pay rise, as might the employees at Lime News. The difference between the two sets of employees is the fact that the employees at Peugeot are skilled and therefore more valuable and harder to replace. Employees at Lime News do not require a lot of skill and are easier to replace.

Peugeot has a much larger customer base than Lime News. Peugeots customers range from 17 years to 60+, although Lime News has customers ranging from children to pensioners.

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Lime News has many regular customers who live in the area, whereas Peugeots amount of customers will change, as people may decide to buy a new car one-year. The relationship between Lime News and its customers is a lot more personal than the customers of Peugeot, as like I have said before, there are many regular customers of Lime News who meet face to face with the owner on a regular basis. Peugeots customers are “nameless”, as their relationship is not so personal as there are roughly 200,000 customers per year and this number will vary each year.

Peugeot is heavily dependent on its suppliers and rely on the Just In Time philosophy. Using this philosophy saves Peugeot massive amounts of money as Peugeot order their supplies just before the need them. E.g. if Peugeot run out of supplies on Friday and need these supplies for production on Monday, Peugeot will order them to arrive that Friday afternoon, rather than ordering the supplies a month in advance. This eliminates the cost of storage units and maintaining them. There are Advantages and Disadvantages of using this philosophy.

Advantages

* It improves cash flow of the company as money is not tied up in stock

* More factory space is available for production

* Costs of stockholding are reduced

* Supplier base is reduced

Disadvantages

* A lot of faith is placed in the suppliers to deliver on time and their flexibility

* Increased ordering costs

* Advantages of bulk buying may be lost

* Possible loss of reputation if customers are let down by late deliveries

Lime News also rely on their suppliers. Lime News has roughly 6 or 7 suppliers. Lime news do not use the Just in Time philosophy like Peugeot but in stead order their goods a week/month in advance with the exception of dairy products and newspapers which are both ordered daily.

When operating any business the local community has to be taken into consideration. Peugeot is no exception. Apart from purchasing cars from Peugeot the local community may be effected by pollution and noise pollution. Peugeot have to take theses matters seriously or it could be costly for business as it may cause protests within the community.

Businesses may also have a positive effect on the local community by creating more employment opportunities or proving a good quality service. Lime News also have to take the local community into consideration. Although they may not have to deal with such issues as pollution like Peugeot, Lime News still have to make sure that the service they provide is of quality as neglecting this may lose them money.

The fact that The Government has not joined the single currency makes it harder for UK businesses, like Peugeot, in the manufacturing sector, to survive. This is for the reason that it is expensive for other countries to import from the UK, as the pound is so strong. Lime News is not effected by this as it a in the tertiary sector.

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Discussing the Influence of Stakeholders in a business. (2020, Jun 01). Retrieved from https://studymoose.com/discussing-influence-stakeholders-business-new-essay

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