Learning Aim 2: Task 2
What sorts of relationships is the company seeking to build with different stakeholder groups?
Introduction:
I will be discussing the main stakeholder groups within two businesses. One of the businesses is a
profit organisation and the other business is a non-profit organisation. This report will show what
relationship the business is trying to build with these stakeholders, as well as the influence the
stakeholders have over said businesses. These influences can easily change the outlook for the
businesses’ aims and objectives.
British Heart Foundation:
• The Owners/Investors/Shareholders: The owners of the business have the biggest influence
over the business because they make all of the final decisions surrounding the business
including planning, building, choosing suppliers and anything else to do with the finances of
the company. As well as this, they decide on the aims and objectives of the business and the
plan they will follow to achieve these. By having these influences they can create a successful
and well-shaped business and earn a good profit from doing so. Owners have to build up
good relationships with the other stakeholders because if they don’t listen to what the other
stakeholders want then they may end up wasting money and resources on something the
general public don’t want. If the shares within a business decrease in worth, this can cause
people to lose interest in the business. Recently Tesco have had a decrease in their share
worth and many people are now not interested in investing their money. Warren Buffet said
that ‘Tesco was a huge mistake.’
http://www.theguardian.com/business/2014/oct/02/warren-buffet-tesco-huge-mistake
• The Customer (Also work as suppliers): The customers also have a large influence over the
business. They can majorly influence whether or not a business expands into certain areas,
the size of the store and many other aspects. They are also the deciding factor as to whether
or not the business makes money. They can influence the prices of goods/services because if
they don’t like paying expensive prices then they will shop elsewhere. At BHF, the customers
are also the suppliers. If they are not happy with the way the business is being run then they
will no longer donate things to the shop, therefore limiting the amount of sales the shop can
make. It is important that the customers are treated well by other stakeholders because if
they feel like their opinions aren’t being listened to then they won’t donate to the shop and
won’t help to fund their cause. In a charity shop such as British Heart Foundation, if the
customers think a certain product is too expensive and it isn’t being bought, then the
employees will consider taking the price down and making it less expensive.
What sorts of relationships is the company seeking to build with different stakeholder groups?
Introduction:
I will be discussing the main stakeholder groups within two businesses. One of the businesses is a
profit organisation and the other business is a non-profit organisation. This report will show what
relationship the business is trying to build with these stakeholders, as well as the influence the
stakeholders have over said businesses. These influences can easily change the outlook for the
businesses’ aims and objectives.
British Heart Foundation:
• The Owners/Investors/Shareholders: The owners of the business have the biggest influence
over the business because they make all of the final decisions surrounding the business
including planning, building, choosing suppliers and anything else to do with the finances of
the company. As well as this, they decide on the aims and objectives of the business and the
plan they will follow to achieve these. By having these influences they can create a successful
and well-shaped business and earn a good profit from doing so. Owners have to build up
good relationships with the other stakeholders because if they don’t listen to what the other
stakeholders want then they may end up wasting money and resources on something the
general public don’t want. If the shares within a business decrease in worth, this can cause
people to lose interest in the business. Recently Tesco have had a decrease in their share
worth and many people are now not interested in investing their money. Warren Buffet said
that ‘Tesco was a huge mistake.’
http://www.theguardian.com/business/2014/oct/02/warren-buffet-tesco-huge-mistake
• The Customer (Also work as suppliers): The customers also have a large influence over the
business. They can majorly influence whether or not a business expands into certain areas,
the size of the store and many other aspects. They are also the deciding factor as to whether
or not the business makes money. They can influence the prices of goods/services because if
they don’t like paying expensive prices then they will shop elsewhere. At BHF, the customers
are also the suppliers. If they are not happy with the way the business is being run then they
will no longer donate things to the shop, therefore limiting the amount of sales the shop can
make. It is important that the customers are treated well by other stakeholders because if
they feel like their opinions aren’t being listened to then they won’t donate to the shop and
won’t help to fund their cause. In a charity shop such as British Heart Foundation, if the
customers think a certain product is too expensive and it isn’t being bought, then the
employees will consider taking the price down and making it less expensive.
