Growth and stakeholders
- Created by: Rebecca Smith
- Created on: 08-04-13 15:22
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- Growth and Stakeholders
- Advantages of growth for the stakeholders
- Employees may have more job security and receive greater rewards if the business is growing and doing well. They might be proud to work for a successful business and want to stay longer. There may be greater opportunities for promotion and new challenges as the business grows
- Suplliers may benefit from addtional orders and more opporutnites to supply the bigger business;they may grow aswell
- The local commumity may benefit if the businesshas more funds to invest. It may recruit people locally, thereby helping the commumity to grow
- The government may benefit, both from higher income tax paid by employees and because it has to pay fewer benfits if there is a lower rate of unemployment. This means the government would be in a better finanical postion
- Disadvantages of growth for the stakeholders
- Suppliers may be bullied by much bigger firm. A big firm may demand lower prices because it is buying so much. Suppliers may be reliant on the big business that they cant refuse
- Employees may no longer feel part of the business. In a large firm, employees may feel though they are now one of thousands and that they do not count as individuals
- Communication can be difficult in a big bussiness and employees may not feel properly informed about whats going on
- The business may not invest in the community. For example, it may switch production to overseas where production is cheeper
- The government may not benefit if the business relocates some of its production overseas or expands by opening outlets abroad
- Advantages of growth for the stakeholders
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