Task 1.4 - Stakeholders

1) On your blog, briefly describe each of the internal and external stakeholders of a company, including all SIGs.

Internal stakeholders of a company:
Employees:
the staff working at business will have stake (an interest) in the firm or company. Employees try to achieve new targets and perform well for benefits such as -
-pay and other financial benefits
-working conditions
-job security
-training and career progression opportunities
A stake of company can be offered to employees only if the business is performing well.

Shareholders (Stakeholders):
owners of private and public limited companies. Shareholders invest their money in a company by purchasing the companys shares because of their research and how they expect the company to perform well for a good return on their investment. this is a powerful group of investors because they have voting rights. Also allowed to share company's profits. shareholder is an individual or group with an interest in an organization.

External stakeholders of a company:
-include suppliers - provide business with stocks of raw materials, component parts, finished goods and other resources for production
-include customers - Customer relations management very important in retailing sector

Special Interest groups (SIG)
This group advertises issues such as prevention of animal cruelty and environment protection. Pressure group is one of the examples of SIG. Individuals in this group place demands on organization to act in a certain way to manipulate the organizations behavior. One more example of SIG is Industry Trade Groups. These are groups that specialize in public relation in promoting one particular industry, usually using education and advertising.

2) What determines whether an SIG will succeed in their objectives?
Funding: the greater the amount and variety of financial resources, the stronger the SIG

Public opinion: SIG is more likely to succeed if the the general public are supportive and sympathetic of the cause promoted by SIG.

Number of members: the more the number of active members, the more influence SIG will have.

Commitment of members: consists of individuals who believe deeply in the cause, SIG will strengthen its influence.

3) What factors determine whether a busines should take notice of an SIG?
Effectiveness of the SIG in attracting attention: stronger the SIG, more the influence, more the pressure on the business
Market power of business: if business consists of monopoly power, business does not have to consider SIGs demands
Costs of complying with the demands of the SIG
Views of directors, senior managers and shareholders: if directors and owners believe that not complying with the SIG would cause damage, more likely to pay attention to SIG.
Aims and objectives of business