Businees DEADERS Q

Question 1

Structure

Answer 1

Defenition
Example
Advantages
Disadvantages
Evaluation
Recomendations
Stakeholders

Question 2

Definition

Answer 2

A stakeholder is any individual or group affected by or able to influence a business’s activities. In a cooperative like RS, stakeholders include apple farmers (owners), beverage companies (customers), consumers, and political or social organizations. A stakeholder conflict arises when the interests of one group clash with those of another, often due to limited resources or differing priorities.

Question 3

Example

Answer 3

In the case of RS, beverage companies are required to use RS’s red squirrel logo on their labels. This branding strategy appeals to environmentally aware consumers but has become controversial. Some beverage companies no longer want to use the logo due to rising anti-immigrant sentiment linked to the red squirrel symbol, which some see as politically sensitive. At the same time, farmers—the cooperative’s owners—want to protect the brand and grow their direct-to-consumer channel, which creates tension with business customers.

Question 4

Advantages

Answer 4

From the farmers’ point of view, branding helps build recognition and long-term loyalty, especially in the new direct sales channel. Selling bottled juice directly to consumers gives RS more control over pricing and profit margins. For consumers who value local, ethical sourcing, the RS brand adds trust and appeal. These efforts can increase total revenue and support the farmers financially.

Question 5

Disadvantages

Answer 5

However, this strategy increases promotional and operational costs, which some farmers are unhappy with, especially if they feel the return is not immediate. At the same time, beverage companies face reputational risk if they use a politically sensitive symbol. This may lead to loss of customers, which harms their business. If beverage companies refuse to carry the RS logo or stop buying RS juice altogether, this could reduce RS’s wholesale revenue, which some farmers rely on more than the direct-sales channel.

Question 6

Evaluation

Answer 6

There’s a clear conflict between RS’s need to maintain its cooperative values and brand identity, and its need to satisfy business customers who may want more flexibility. Farmers want higher returns, but that may come at the cost of alienating bulk buyers. RS must balance the long-term benefits of branding and direct sales with the short-term need to maintain strong customer relationships

Question 7

Recommendations

Answer 7

RS should consider offering beverage companies an opt-out from using the red squirrel logo, without compromising the brand’s identity in its direct sales. At the same time, it should work with farmers to improve efficiency and keep costs under control, easing concerns about rising expenditure.

Question 8

Limitations of the source

Answer 8

We don’t know the financial impact of the direct sales channel versus bulk sales, nor how many beverage companies have stopped using RS’s juice. Without this data, it’s difficult to fully assess the scale and urgency of the stakeholder conflict.