P2-EXPLAIN HOW TWO CONTRASTING BUSINESSES ARE INFLUENCED BY
STAKEHOLDERS
In this task, I will be explaining and identifying the influence of stakeholders on chosen
businesses Adidas and NSPCC.
A stakeholder is considered to be who has an interest in a company. Individuals, groups, and
organisations who are impacted by a company's operations are known as stakeholders.
There are two types of stakeholders Individuals or groups outside of a business or project
who can affect or be affected by the business or project are known as external stakeholders.
External stakeholders, who are typically end-users and customers, may have the greatest
impact on a company's or project's long-term success. People who have a direct interest in a
company, such as through employment, ownership, or investment, are considered internal
stakeholders.
Internal Stakeholders
Examples of Internal Stakeholders:
Owners have a large say in how the purposes of the business are decided, but other groups
also have an effect on decision-making. For example, a company's day-to-day operations
directors may decide that expanding sales is more vital than generating profits.
Employees are invested in the company's success in order to keep their jobs and get
rewarded. Depending on the nature of the business, employees may be concerned about
health and safety. Many people place high importance on congruence between their own
values and the company's objectives.
Managers are concerned with project management and the operation of specific corporate
units or departments. Their top priorities are the level of autonomy they have, the influence
they have over their teams, and the support they receive to perform their jobs.
External Stakeholders
Examples of External Stakeholders:
Customers are important stakeholders because if customers’ needs are ignored by
businesses, the company will lose sales to competitors.
Pressure groups can learn about the company's environmental policies.
Suppliers who want the company to keep buying their products.
Shareholders have a financial stake in the company. The bottom line of the company has a
direct impact on the shareholder. As with all other stakeholders, good short-term decisions
, must be balanced with smart long-term decisions: good decisions for all stakeholders
benefit shareholders.
Government makes effort to encourage businesses to invest and create jobs. The laws they
enact can sometimes help and sometimes hinder businesses from doing so. This is due to
the fact that governments must consider both employee employment rights and business
development opportunities.
Internal stakeholders Adidas
Employees: Employees are a significant stakeholder in the Adidas group. Employees are a
group of stakeholders who have an effect on the business by putting in an effort. They work
for the company and contribute to its growth. The Adidas Group influences employees by
paying them and rewarding them. To maintain close relationships with employees, Adidas
provides acceptance and the right to participate in decision-making processes. Employees
have an interest in Adidas being successful to maximise their payment.
Executive directors: Adidas executive board is composed of six members. Kasper Rorsted
has served as the company’s Chief executive officer since 2016. In 2013 Ronald Auschel
became the Executive Board member who is responsible for global sales, Brian Grevy is also
an executive board member of Adidas who is responsible for Global brands in 2020, another
member of Executive Board member is Harm Ohlmeyer he was appointed to the became
Chief Financial Officer in 2017. At the beginning of 2021, Amanda Rajkumar was appointed
to the Adidas Executive Board and is responsible for Global Human Resources, People, and
Culture, and in May 2021, she was appointed as Labour Director. The final member of the
Executive Board member is Martin Sharkland since 2019 has been in charge of Global
operations. Like employees, Executive directors also have an interest in higher wages.
Owners: On October 1, 2016, Kasper Rorsted was appointed as the CEO of Adidas. The CEO
has been reappointed for another four years; the contract that was supposed to terminate
on August 1, 2021, will now end on July 31, 2026. Adidas's owner is in charge of developing
the company's aims and objectives. The owner must make decisions in order to improve the
operation of the business and stay ahead of its competitors. The aims and objectives set by
the owner must be followed by the employees in order to achieve business goals. The staff
receives information on where the business is doing well and what departments need to be
improved in order to keep providing good service. Owners have an interest in a business to
perform well so that they can make a profit.
External stakeholders Adidas
Suppliers: The majority of Adidas' production has been outsourced. They cooperate with
over 500 factories in 46 countries to make products (2021). Its supply chain is multi-layered
and global, with various business partners, some are directly contracted manufacturers, and
others are not. Suppliers have an interest in a business because they want their payment for
supplying the business products.
STAKEHOLDERS
In this task, I will be explaining and identifying the influence of stakeholders on chosen
businesses Adidas and NSPCC.
A stakeholder is considered to be who has an interest in a company. Individuals, groups, and
organisations who are impacted by a company's operations are known as stakeholders.
There are two types of stakeholders Individuals or groups outside of a business or project
who can affect or be affected by the business or project are known as external stakeholders.
External stakeholders, who are typically end-users and customers, may have the greatest
impact on a company's or project's long-term success. People who have a direct interest in a
company, such as through employment, ownership, or investment, are considered internal
stakeholders.
Internal Stakeholders
Examples of Internal Stakeholders:
Owners have a large say in how the purposes of the business are decided, but other groups
also have an effect on decision-making. For example, a company's day-to-day operations
directors may decide that expanding sales is more vital than generating profits.
Employees are invested in the company's success in order to keep their jobs and get
rewarded. Depending on the nature of the business, employees may be concerned about
health and safety. Many people place high importance on congruence between their own
values and the company's objectives.
Managers are concerned with project management and the operation of specific corporate
units or departments. Their top priorities are the level of autonomy they have, the influence
they have over their teams, and the support they receive to perform their jobs.
External Stakeholders
Examples of External Stakeholders:
Customers are important stakeholders because if customers’ needs are ignored by
businesses, the company will lose sales to competitors.
Pressure groups can learn about the company's environmental policies.
Suppliers who want the company to keep buying their products.
Shareholders have a financial stake in the company. The bottom line of the company has a
direct impact on the shareholder. As with all other stakeholders, good short-term decisions
, must be balanced with smart long-term decisions: good decisions for all stakeholders
benefit shareholders.
Government makes effort to encourage businesses to invest and create jobs. The laws they
enact can sometimes help and sometimes hinder businesses from doing so. This is due to
the fact that governments must consider both employee employment rights and business
development opportunities.
Internal stakeholders Adidas
Employees: Employees are a significant stakeholder in the Adidas group. Employees are a
group of stakeholders who have an effect on the business by putting in an effort. They work
for the company and contribute to its growth. The Adidas Group influences employees by
paying them and rewarding them. To maintain close relationships with employees, Adidas
provides acceptance and the right to participate in decision-making processes. Employees
have an interest in Adidas being successful to maximise their payment.
Executive directors: Adidas executive board is composed of six members. Kasper Rorsted
has served as the company’s Chief executive officer since 2016. In 2013 Ronald Auschel
became the Executive Board member who is responsible for global sales, Brian Grevy is also
an executive board member of Adidas who is responsible for Global brands in 2020, another
member of Executive Board member is Harm Ohlmeyer he was appointed to the became
Chief Financial Officer in 2017. At the beginning of 2021, Amanda Rajkumar was appointed
to the Adidas Executive Board and is responsible for Global Human Resources, People, and
Culture, and in May 2021, she was appointed as Labour Director. The final member of the
Executive Board member is Martin Sharkland since 2019 has been in charge of Global
operations. Like employees, Executive directors also have an interest in higher wages.
Owners: On October 1, 2016, Kasper Rorsted was appointed as the CEO of Adidas. The CEO
has been reappointed for another four years; the contract that was supposed to terminate
on August 1, 2021, will now end on July 31, 2026. Adidas's owner is in charge of developing
the company's aims and objectives. The owner must make decisions in order to improve the
operation of the business and stay ahead of its competitors. The aims and objectives set by
the owner must be followed by the employees in order to achieve business goals. The staff
receives information on where the business is doing well and what departments need to be
improved in order to keep providing good service. Owners have an interest in a business to
perform well so that they can make a profit.
External stakeholders Adidas
Suppliers: The majority of Adidas' production has been outsourced. They cooperate with
over 500 factories in 46 countries to make products (2021). Its supply chain is multi-layered
and global, with various business partners, some are directly contracted manufacturers, and
others are not. Suppliers have an interest in a business because they want their payment for
supplying the business products.
