Growth and stakeholders

HideShow resource information
View mindmap
  • 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


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Methods to grow a business resources »