Stakeholders impact on change

Question 1

Why do shareholders have an impact on change ?

Answer 1

They are only interested in return on investment/profits/dividends and business success/growth

Question 2

Why do managers and employees have an impact on change ?

Answer 2

It ensures they are receiving the right rewards, job security, working conditions, progression opportunities, job satisfaction, motivation and outlines correct roles/responsibilities

Question 3

Why do customers have an impact on change ?

Answer 3

They want value for money, product quality and good customer service

Question 4

Why do suppliers have an impact on change ?

Answer 4

They want to attend profitable trade and financial stability

Question 5

Why does the government have an impact on change ?

Answer 5

For the purpose of correct collection of taxes, creation of jobs and business legislation

Question 6

Why does society have an impact on change ?

Answer 6

Determines the overall success of a business, creates/retains jobs and ensures compliance with local laws

Question 7

What should businesses consider when discussing stakeholder influence ?

Answer 7

1. How will they measure the success of change ?
2. What do they want to see ?
3. How much influence do they have ?
4. Could they stop/undermine change ?
5. How important are they to the business ?

Question 8

What are the potential conflicts that could occur between stakeholders ?

Answer 8

cut jobs to reduce costs - will benefit shareholders and banks, but opposed by employees and the local community

Add extra shifts to increase factory capacity - will benefit management, customers and suppliers, but opposed by local community

New machinery to replace manual work - will benefit customers and shareholders, but opposed by employees

Increased selling prices to up profit margins - will benefit stakeholders and management, but opposed by customers

Question 9

What are ways a business can manage stakeholders influence and power ?

Answer 9

Stakeholders with high levels of power - ensure they are prioritised and engaged within the business to maintain satisfaction, through constant communication

Stakeholders with low levels of power - ensure they are communicated with only when necessary