...Contrasting Business Types by Purpose, Ownership and Stakeholder Impact Introduction For this assignment I have decided to use two separate and contrasting companies both having separate business purposes. The two businesses I have chosen to write about are UNICEF and John Lewis partnership. UNICEF is a non- profitable international organisation whose main purpose is to address the needs of struggling children around the world to ensure that all children can at least get their basic needs that they deserve and have the human right to. UNICEF was created on December the 11th 1946 and was original called the United Nations international children’s emergency fund which then became UNICEF for short. However in 1953 UNICEF changed the name slightly by removing the “international” and the “emergency” nonetheless they still kept the short name the same. Due to UNICEF being the leading charitable organisation for the development of children, they have won awards like the noble peace prize. Due to UNICEF being a charity it is governed by a board of trustees that the company picks. These trustees meet frequently to discuss the direction and the aims of the charity. There is no ownership however there is a president that oversees everything the charity does and creates the aims that the trustees have to try and accomplish. UNICEF is in the tertiary sector as they are providing a service to the people in need and also do not hold any liability. John Lewis partnership is a company which...
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...BUSINESS ETHICS AND STAKEHOLDER ANALYSIS Kenneth E. Goodpaster Abstract: Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethica] management decisions. A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just men* tioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making. So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders' interest, both short- and long-term, is one of the areas. But it is only one. Peter Dnicker, 1988 Harvard Business Review W HAT is ethically responsible management? How can a corporation, given its economic mission, be managed with appropriate attention to ethical concerns? These are central questions in the field of business ethics. One approach to answering such questions that has become popular during...
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...Stakeholders Owners: The owners of lanchester dairies are Bill and Geoff Austin, they founded the company in the early 1900’s with their wives. The owners of Lanchester dairies have the most influence on the business as they decide what the business is, how it is going to operate and who is going to be employed. The owners have the most influence for a company and the most power as they are at the top of the hierarchy. Managers: Managers are concerned about their salary. Their main concern is to be in charge of staff and to make sure everything is running smoothly. Managers may clash with employees because the manager will want all of the employees to work to the best of their ability however some employees will only be content with doing the bare minimum. Workers: Most workers will work for a certain company because of their wage, finding work can be very hard so most of them would also like to keep their job. The workers may not be concerned about the company itself, more of the wage that they earn and their current job role. Customers: Customers want the business to produce high quality products or services to their satisfaction, if the business does this then customers will return to them to make more purchases, customers also want the business to maintain the high quality of goods that they produce with reasonable prices. Suppliers: Suppliers want the business to buy their products, so the business can then sell them on to customers looking to buy goods. The suppliers...
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...Introduction This report is assessing the point of view of different stakeholders seeking the influence the aims and objectives of two contrasting organisation which are McDonalds and Cancer Research and evaluating the influence stakeholders exert in McDonalds. http://tse1.mm.bing.net/th?&id=OIP.M7e5e0cf9f5213ab25420d34178a24b0co0&w=300&h=300&c=0&pid=1.9&rs=0&p=0What is a stakeholder? A stakeholder is anyone who has an interest in the business, there are two types of stakeholders internal and external. Internal stakeholders are within the business and external stakeholders are outside the business. The point of view of different stakeholders seeking to influence the aims and objectives of McDonalds and Cancer Research. Profit organisation-McDonalds http://tse1.mm.bing.net/th?&id=OIP.M456a4c54989f135bb9ed00d6a4697c1fH0&w=300&h=300&c=0&pid=1.9&rs=0&p=0Customers-McDonalds customers want high quality products as they are spending their money on the products. McDonald’s response to this need is by making sure that they produce high quality products which can be easily accessed by the public by expanding and opening new branches. As McDonalds will be expanding, the customers will seek influence of McDonald’s objectives of achieving growth which is what McDonalds want. This is an advantage for both McDonalds’ and the customers as for McDonalds their business will be expanding and strengthen economically which means McDonalds...
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...Answer: F Page: 3 2. A business is any organization that is engaged in making a product or providing a service for a profit. Answer: T Page: 4 3. Businesses and society are independent of one another. Answer: F Page: 4 4. The stakeholder theory of the firm argues that a firm’s sole purpose is to create value for its shareholders. Answer: F Page: 6 5. The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society. Answer: T Page: 6 6. The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work. Answer: F Page: 7 7. Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services. Answer: F Page: 8 8. Market stakeholders include nongovernmental organizations and the media. Answer: F Page: 8 9. Government can be considered both a market and nonmarket stakeholder. Answer: T Page: 10 10. The interests of different stakeholders often coincide. Answer: T Page: 14 11. Stakeholders involved with one part of a company often may have little or no involvement with another part of the company. Answer: T Page: 15 12. Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience...
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...Introduction Background: Load shedding is the term used to describe the deliberate switching off of electrical supply to parts of the electricity network, and hence to the customers in those areas. This practice is a core part of the emergency management of all electricity networks. Load shedding can be required when there is an imbalance between electricity demand (customers’ usage) and electricity supply (the ability of the electricity network to generate and transport the required amount of electricity to meet this demand). When there is a shortfall in the electricity supply, there can be a need to reduce demand very quickly to an acceptable level, or risk the entire electricity network becoming unstable and shutting down completely. This is known as a “cascade”. Event and can end in a total or wide spread network shutdown affecting very large areas of country. Load shedding normally happens in two ways: Automatic Load Shedding: This is a result of concurrent failures of major element(s) in the national grid(e.g. co-incidental generator or key transmission line failures), resulting in protection schemes initiating the automatic isolation of additional parts of the national grid, to protect the entire grid from cascading to a total blackout. Automatic load shedding always occurs on the transmission system level, with the result being large amounts of electricity and large blocks of customers taken off supply in a very short time. Typical load...
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...Chapter 01 What Is Strategy, and Why Is It Important? Multiple Choice Questions 1. | Keeping in mind Apple's competitive advantage, which of the following products was introduced by Apple in 2007? A. | iPad | B. | iPhone | C. | iPod | D. | iTunes | | 2. | _____ is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage. A. | Supply chain management | B. | Integrated technology management | C. | Strategic management | D. | Inventory management | | 3. | _____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. A. | Behavior modification | B. | Strategy | C. | Credo | D. | Competency management | | 4. | Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments? A. | Strategy analysis | B. | Strategy implementation | C. | Strategy formulation | D. | Strategy control | | 5. | In _____, a firm frames a guiding policy to address the competitive challenge. A. | strategy control | B. | strategy implementation | C. | strategy formulation | D. | strategy analysis | | 6. | Through _____, a firm puts its guiding policy into practice by employing a set of coherent actions. A. | strategy control | B. | strategy implementation...
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...century capitalism." True False A business is any organization that is engaged in making a product or providing a service for a profit. True False Businesses and society are independent of one another. True False The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders. True False The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society. True False The normative argument for the stakeholder theory of the firm says that the stakeholder view is simply a more realistic description of how companies really work. True False Nonmarket stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services. True False Market stakeholders include nongovernmental organizations and the media. True False Each stakeholder group has only one source of power in relation to a firm. True False 5. 6. 7. 8. 9. 10. The interests of different stakeholders often coincide. True False 11. Stakeholders involved with one part of a company often may have little or no involvement with another part of the company. True False 12. Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience. True False 13. Urgency refers to the extent to which a stakeholders actions are seen as proper or appropriate...
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...For this task I will be ranking the stakeholders for Tesco in order of influence. I will also give reasons to explain why I believe the stakeholders at the top of my list are more important than the ones on the bottom. Stakeholders have a variety of different influences on how a business is run. And they can all play a part in the success of a business in one way or another. 1- Customers- The stakeholder that I believe has the most influence on Tesco and its success is the customers, the reason for this is that the customers are the ones who buy the products that Tesco sell. Therefore if Tesco did not have any customers then their business would not work as they will have no one buying their goods. 2- Employees- The stakeholder I would put in second would be the employees, as they also play a big influence in the success of a business. This is because they carry out day to day jobs within Tesco, such as stacking shelves and making sure everything is suited to the customers’ needs. Employees also play a big impact on Tesco’s aims as without employees they would not be able to operate. Therefore it is important that Tesco take care of their internal stakeholders, as if there internal stakeholders are happy they can then tell their friend/family about the company. 3- Shareholders Shareholders have a direct influence on an organisations aims and objectives. This is because shareholders want the business to increase the profits or the growth as it means that...
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...review the case study I have produced a short informal report to help you understand Original Travels external environment. I have identified the different stakeholders attached to Original Travel and briefly explored their concerns and contributions. ‘The concept of stakeholders is important for two reasons. First, it emphasises that stakeholder groups have different interests; second it illustrates the relationship between businesses and their external environments’. (Cited in The Open University B120 What is business? 2006, P.25). This can be further explored by using a STEEP model. (Cited in The Open University B120 What is business? 2006, P.17). By using a STEEP model and viewing the different types of stakeholders attached to Original Travel it should provide you with an accurate understanding of the external environment in which your company operates. A STEEP model considers five factors, which I have listed below and given examples. * Sociological factors-changes in age, patterns of work, gender roles, patterns of consumption, culture changes and country developments. * Technological factors-developments in technology and the effects on your business. * Economic factors-economic growth/shrinkage, interests rates, exchange rates, energy prices and levels of employment. * Environmental factors-how your business has an effect of the environment and how your customer base views this effect. * Political factors-local and world legislation governing trade as well...
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...After Kraft announced takeover of Cadbury’s, it announced job losses. TWE do you agree that mergers and takeovers are not always in the best interests of their stakeholders (40) A stakeholder is a group or organisation/institution that has an interest in or is affected by the success of a business. Many stakeholders would argue that takeovers/mergers are not in their best interests because the new ownership will usually cut jobs to reduce costs. This is because the new ownership are likely to have their own HR department, operations, management etc, therefore roles such as middle managers will be regarded as surplus to requirements. Cutting jobs would be supported by shareholders such as shareholders/higher management but opposed by employees and the local community as the firm would not be fulfilling their social responsibility. After cutting jobs, the firm will then transfer production overseas as another method of cutting costs which will be supported by management and customers (since the firm may reduce prices), however it will be opposed by the local community because of the job losses and impact on the economy incurred. However if a firm decides not to transfer production overseas they may introduce more capital intensive labour and replace human workers as a method of reducing long term costs which will be favoured by customers and shareholders but opposed by employees. However whilst most takeovers will favour the cutomer, the firm taking ownership may rise prices to...
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...Business succeeds when it cares about community “The primary objective of a firm is to maximise its profit and its primary accountability is towards its shareholders/owners” Although I can see how in most instances the main objective of a firm is to maximise it’s profit, I do not believe that it necessarily follows that the primary accountability is to the shareholders and owners. I would like to present the following argument that suggests real success can be achieved by working with and caring for communities and stakeholders. If we were to believe that companies would only succeed by looking after their shareholders we would surely limit the opportunities for any firm to have any community purpose and would remove any of the benefits that can be achieved by working with other key stakeholders. Firms can benefit greatly from interaction with wider stakeholders and can reap benefits when they care about their communities because these communities can be seen to work together with firms to support mutual success. In outlining my views I will refer to three theories, namely stakeholder theory, legitimacy theory and agency theory and make a case for how an interaction of these theories will support my views that business succeeds when it cares about its community. Stakeholder Theory, (Financial Times Lexicon, 2011), ‘Stakeholder theory suggests that...
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...PSC 495 Stakeholder Analysis Summary Click Link Below To Buy: http://hwcampus.com/shop/psc-495-stakeholder-analysis-summary/ The purpose of this assignment is to identify key stakeholders within your organization who are affected by, have influence over, or have an interest in solving the problem you are attempting to address with your action research project. Stakeholder analysis requires you to examine a number of variables in relation to each individual or group you have identified. Use the "Stakeholder Analysis" spreadsheet to record the results of the stakeholder analysis. In the analysis, list titles and groups of stakeholders. Do not list names of specific individuals. It is important to note the role each stakeholder has in the problem and solving it. Determine whether or not the individual or group has a negative, indifferent, positive, or very positive predisposition about the problem. Within the "Stakeholder Analysis" spreadsheet is a tab labeled "Current-State Matrix." Study the terminology related to influence and support and think about how each block describes the feelings a stakeholder may have about the problem and proposed solution. For example, there may be a group or individual that has a high degree of support in regard to solving the problem. If you know that person or group also has a high level of influence in how the problem is solved, it is important to think about how you will approach this person or group in terms of seeking information...
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...having a good image in the community. This case study looks at how ASDA has developed a vision that includes community involvement. Mission statements ASDA makes clear statements of its mission, purpose and values to help stakeholders see the direction the business is taking. The mission statement sets out its long term aims and is 'To be Britain's best value retailer exceeding customer needs always.' Its purpose is stated as 'To make goods and services more affordable for everyone'. Its values show what the company believes in including respect for the individual, excellence and customer service. New colleagues receive a detailed induction into all three elements. Stakeholders ASDA has both internal stakeholders, within the business and external stakeholders. Examples of internal stakeholders are managers and colleagues. Examples of external stakeholders are customers and shareholders. Stakeholders may want different things: • Customers want low priced, good quality products. They also want to see that ASDA is involved positively in their community. • Colleagues are motivated by being able to help the community. • Shareholders want a good return on their investment but they also believe in community involvement, as it makes good business sense. • Suppliers may be local businesses that ASDA can use. Community programme The...
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...and success. The mutual fund manager also needs to identify the external and internal stakeholders and how Best Buy meets the wants and needs of the stakeholders. SWOT The strengths of Best Buy include high brand recognition, affordable prices, special offers, convenient locations, and a strong online presence. Best Buy is large enough to afford marketing so that it can use prime time television and radio spots to reach its potential customers. The weaknesses of Best Buy range from impersonal customer service to costs of maintaining huge warehouses and stores. This year already Best Buy lost 1.7 billion. Recently Best Buy announced it is closing 50 of its stores and is planning to open smaller stores and work on a stronger online presence. This will help them avoid what happened to Circuit City and also help compete with Amazon (USA Today, 2012). Potential opportunities are new gadgets and electronics with the latest digital cameras, cell phones, video games, and new television models becoming more popular. If Best Buy can stay ahead of the market and offer the latest gadgets at competitive prices they can have an advantage and boost profits. Threats include the environment with many competitors that undercut Best Buy prices and an economic recession that limits the money customers have available for electronic purchases. Stakeholders Internal and external stakeholders of Best Buy include...
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