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

Comments

No comments have yet been made

Similar Business Studies resources:

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