Stakeholders are individuals and groups of people who have an interest at stake in the business. In the business sometimes their interests are the same. Different businesses have different stakeholders. There are many stakeholders in J-Sainsbury's. These are the local community; the local communities are the consumers for the supermarket. J-Sainsbury needs a large workforce to work for them, so the local communities provide the labour supply for J-Sainsbury's.
If J-Sainsbury's was to move to another location or close down, the local community will be directly affected as the unemployment will rise up and trade will also suffer in the community because J-Sainsbury's rely on local trade, this means more of there sales will be made by the local community, and so the local community will go to supermarkets to do there shopping instead of small shops. I say this because the prices of products will be more expensive in small shops compared to J-Sainsbury's.
This is because supermarkets like J-Sainsbury's buy there good in big bulks at a discounted rate, compared to small shops that may not have enough money to buy stock in big bulks. The customers are stakeholders in J-Sainsbury's. I say this because without customers, J-Sainsbury's wouldn't even be able to run their business. The customers can also affect the running of the business, because the customers have to be satisfied with the services that J-Sainsbury's provide, e. g. car parks, wide range of foods, quality of food and restaurants.
If they are not happy they will shop elsewhere. The employees are also stakeholders in the business. If they are doing their job correctly, the customers will be satisfied with J-Sainsbury's customer service. If they are not happy this will affect their work and the service the customers service. The employees would work at a poor standard, and if employees are very unhappy with their job they would also starts fight in the fight place, and not work as a team, which is very bad for a big company like J-Sainsbury's because this could give a bad image to the whole organisation.
Also employees who are not happy with the job can do strikes and take industrial action, which is time wasting and can damage J-Sainsbury's status. If J-Sainsbury's were to shut down, all those employees will suffer by losing their jobs and they all will be unemployed. The suppliers are major stakeholders in the running of J-Sainsbury's. The suppliers are also major stakeholders in the running of J-Sainsbury's. The suppliers supply the goods for J-Sainsbury's to sell to their customers. If J-Sainsbury's were to close down, the suppliers will lose their clients and will also lose profits, thus may end up bankrupt.
The shareholders are probably the most important stakeholders in J-Sainsbury's. Without the shareholders, J-Sainsbury's wouldn't be able to invest in their business and then it won't be able to compete with other supermarkets. The local government is also a stakeholder with a direct influence. They can pass on new laws about how a business runs, and J-Sainsbury's and Errol Anderson Motors will have to adapt to these new laws. They can also pass on new health and safety laws. Competitors are also stakeholder in the running of J-Sainsbury's.
If one of J-Sainsbury's competitors opened a new supermarket near J-Sainsbury's, it will attract more customers to the area, but it could also potentially harm J-Sainsbury's business The community is very interested in J-Sainsbury's, because either they do their shopping there or because the local community would want to know if the local roads are going to be congested, which will mean more pollution and noise in the area. The pollution and noise is mainly going to come from cars. The car fumes will pollute the air, which the community may be breathing this in.
So the community is one of the most important stakeholders. Compared to Errol Anderson motors, which is a much smaller business then J-Sainsbury's, but the community still have an interest in Errol Anderson motors, again because of road congestion's, pollution and noise of cars. Also it is highly likely that Errol's customers are from the community, so it is important for Errol Anderson motors to keep a good relation with the community. Secondly the local community may be concerned about business activities and operations that could reduce the value of their properties.
So I think it would be very good if both J-Sainsbury's and Errol Anderson motors keep a good relationship with the local community. Shareholders are people who invest money in a company. So the shareholders and people interested I J-Sainsbury's shares would be stakeholders of J-Sainsbury's. A shareholder for J-Sainsbury's will mainly have two main interests. > The first is that J-Sainsbury's do well and the value of the shareholders investment will increase. > The second is that J-Sainsbury's will pay a good dividend twice a year. A dividend is money, which J-Sainsbury's gives in return, just as a bonus for investing your money.
All shareholders of J-Sainsbury's are invited in an AGM, which is an annual general meeting. Al the meeting a shareholder has 1 vote for each share they have bought. I personally think the most important stakeholder for J-sainsbury's is the shareholder. I say this because shareholders are known as the owners of J-sainsbury's and are run by the board of directors. Shareholders also vote for who will be board of director at the AGM, which is held every year. Shareholders also have an impact on J-Sainsbury if they were to sell all their shares; this would effect J-Sainsbury's directly as they would problems with fianace.
If I compare J-Sainsbury's, which is a public limited company to Errol Anderson motors, which is a sole trader, we know that Errol Anderson motors doesn't have shareholders as a stakeholder because Errol Anderson motors is a sole trader and the business is not suitable to run as a public limited company. Employees have many interests in the business. Employees who work for J-Sainsbury's and Errol Anderson motors have interests such as: > The way staff are treated > The rates of wage level > And whether staff will feel secure at work
J-Sainsbury would want to keep their employees happy and satisfied because they deal with hundreds of staff, which must be treated equally. The influences of employees vary from one business to another. For example J-Sainsbury's is a recognised business, so J-Sainsbury's is likely to be more formal compared to Errol Anderson motors because Errol deals with only 2 or 3 employees. Errol Anderson motors would be more informal and employees may call Errol from his first name compared to J-Sainsbury's where the manager may be called by his/her surname. Errol Anderson motors:
In Errol Anderson motors, the main stakeholders are the customers. If there are no customers, Errol Anderson would have close down his business, if Errol Anderson closes down his business, customers will be forced to go to another garage. Suppliers are also important stakeholders, because Errol Anderson depends on the suppliers to bring in supplies and spare parts for his garage. The local community has an indirect influence on the business. If the local community does not bring enough trade to Errol's business, the business will close down and the local community will also suffer because it is losing its local trade.
Errol himself is a stakeholder in the business because he has an interest how the business runs and is directly responsible for any debts that the business incurs. Although stakeholders all have an interest in the business sometimes they may disagree with a decision. In J-sainsbury's, if one of the branches decided to close down, there may be conflicts between the stakeholders. The stakeholders involved in this case will be the customers, the shareholders and the employees. The customers may oppose the fact that a J-Sainsbury's near them is closing down, because then they will have to visit another J-Sainsbury's supermarket.
Some employees may resent this. They may lose their job or they may not want to move to another J-Sainsbury's supermarket. The shareholders may be glad that this action is taking place because this particular branch may not be making enough profits. This is just one example of a conflict. Another example is if J-Sainsbury's decided to start selling coats with animal fur, certain pressure groups may resent to the idea and start a campaign, this will cause conflicts between certain stakeholders.
The head office may still want to sell the coats, some customers may like the coats, others may not and probably join a campaign, and these examples are conflicts between stakeholders. Even a small business like Errol Anderson's may have arguments between the stakeholders. For example, if Errol wanted to extend the time his garage is open, this may offer a better service for his customers, but this will put his assistants in a compromising position. They may not want to work the late hours, and this will cause conflicts between Errol and his assistants.