Needs of Various Stakeholders
The needs of various stakeholders
As we already discuss about the important of the stakeholders. A stakeholder does not exist but makes demand of the organization. The reason why stakeholders are important in strategic analysis is because of they want something from the organization. The demand of different stakeholders may become conflict to each other. For example shareholders of Tesco want maximum returns from the organization whereas the management team may retain profits for long term investment. Also the employees of tesco want higher payment or simply keep employee during the economy crisis, but the management may with to go through the difficult time by cutting posts and costs. Because of the individual needs are various, the conflict exists. And it will change along with times, macro-environment change and organizational changes:
The government:- The government has power on influence the daily operations of tesco. Now days the government may give more support to the business because of the global economy downturn.
Customers:- The small change of social communications behaviors and the innovation of high promotion may lead more demand on the services and products provided by tesco. This is very important power for the tesco to continue developing to satisfy the customer.
Shareholders:- Shareholders may have the less expectation on returns during the crisis in the stock market. However, when the economy blooms again, say after several years, shareholders will expect more returns from the organization.
Employees:- Who could be considered as dependent stakeholders. They are willing to retain the same pay level in order to keep employed during the recession period, but when things gets better, the staff will wish to increase their pay and other welfares.
Suppliers:- The operation of the business is very difficult and complex with the effects of globalization. Small changes in the country would have direct and indirect impact over the business
As we already discuss about the important of the stakeholders. A stakeholder does not exist but makes demand of the organization. The reason why stakeholders are important in strategic analysis is because of they want something from the organization. The demand of different stakeholders may become conflict to each other. For example shareholders of Tesco want maximum returns from the organization whereas the management team may retain profits for long term investment. Also the employees of tesco want higher payment or simply keep employee during the economy crisis, but the management may with to go through the difficult time by cutting posts and costs. Because of the individual needs are various, the conflict exists. And it will change along with times, macro-environment change and organizational changes:
The government:- The government has power on influence the daily operations of tesco. Now days the government may give more support to the business because of the global economy downturn.
Customers:- The small change of social communications behaviors and the innovation of high promotion may lead more demand on the services and products provided by tesco. This is very important power for the tesco to continue developing to satisfy the customer.
Shareholders:- Shareholders may have the less expectation on returns during the crisis in the stock market. However, when the economy blooms again, say after several years, shareholders will expect more returns from the organization.
Employees:- Who could be considered as dependent stakeholders. They are willing to retain the same pay level in order to keep employed during the recession period, but when things gets better, the staff will wish to increase their pay and other welfares.
Suppliers:- The operation of the business is very difficult and complex with the effects of globalization. Small changes in the country would have direct and indirect impact over the business