This is what the teacher said about this assignment:
You did a great job addressing internal and external stakeholders generally, however, in this and all assignments the topic area should have been your selected problem area: natural disaster and emergency management. I recommend that you revise this assignment, prior to the submission of your final assignment and answer the questions asked as they relate to your specific problem area, because you will need the correct section of this assignment when you merge your documents for the final assignment.
A stakeholder is an organization or an individual who has an interest in a said company or in a certain project. Stakeholder has interest in the said company since he has something which he can lose or which he can gain from undertaking of the company (Kazadi, et al 2016). Internal stakeholders are those individuals who are within the organization and help in running the day to day activities of the company. They include employees, shareholders and the management who have the responsibility of overseeing the activities of the company are in line with goals and objectives of the company.
Employees are skilled man power who have the required skills and experience to undertake daily organization activities. They stake I the company is to see that they perform their described job so that the company can realize profits which would be used to remunerate them and also to give them bonus at year end.
Shareholders are also known as owners of the company and they are the legal owners of the company. Their main stake in the company is to see the business is going concern and the main objectives of the company is being met by the company employees. They also have a stake in the profits which the company is making since it is used to give them divided which is the return of investment they made.
Management of the company is also part of employees though they are the top most employees of the company. They tasked with formulation of strategies which will be perused so that the company can be able to archive it initial goals and objectives. Management have two main stakes in the organization. First they have a stake in making sure that the strategies they have formulated are realistic and the will archive the companies goals and objectives. Secondly, they have an interest in the profits made by the company as they are used to remunerate them.
External stakeholders are groups and individuals who are outside the organization. External stakeholders affect or get affected by the company activities. They include customers, creditors and also government agencies.
Customers are groups and individual who buy goods and services which are produced by the company. Customers have a stake in the comp0any as they rely of the goods produced and sold by the company to satisfy their daily needs. Hence, they have a stake in ensuring that the company goods and services are being sup-plied in the market.
Creditors are organizations or individuals who have extended their funds resources to the company on credit. Creditors has stake in knowing the performance of the company since when the company is performing well they will be able to recoup their funds and resources. Therefore the main stake of creditors is the profitability of the company.
Government agencies are the agencies which are tasked in ensuring that business organizations conduct business within the required rules and regulations of the country. They also involved in collection of taxes which is used in running of government. The main stake if these agencies included the strategies which the management are using to archive the goals and objectives of the company. They also have a stake in the company revenues so that they can be able to determine the taxable amount.
Internal stakeholders have an influence to the running of company as their decision is crucial to the running of the company. They also play an important role in ensuring company goals are realized. Employees are involved in implementation of the strategies which have been laid down by the management. When these employees are motivated and they have the required resources they will help in realization of the supreme company goal and objectives. On other hand, when employees are not motivated and they have not been provided sufficiently there will be poor performance (Lozano, 2015).. The situation will affect the organization negatively as the main objectives of organization will not be archived.
Shareholders will also have a major impact to the success of the company. Shareholders have voting power and this affects the management which will be vested with responsibility of strategy formulation. When shareholders vote in skilled and experienced management team the company will be affected positively (Stubbs, Higgins 2014). When the shareholders have voted in an unexperienced and unskilled management team the company will not archive their set objectives and goals and this will give a negative impact to the company.
Management will also give the company a positive and also a negative impact. When the management is well motivated and funds are availed there is high possibility formulating better and efficient plans. When management are not well motivated there is possibility that the strategies will not be efficient in archiving the goals and objectives of the company.
External stakeholder’s activities give either positive or negative impact to the company. Customers can shift to other close substitutes and this can lead to low sales which is a negative impact to the company. When customers decide to remain royal sales increase and this creates a positive impact to the company.
In the solution provided there is high possibility of ensuring that stakeholders will act in the best interest of the company. When this is taken as a solution to an ailing company all stake holders should be provided with an environment where they will act to the best of the company.
The solution will help organizations in archiving their goals and objectives as they have been stipulated.
References
Kazadi, K., Lievens, A., & Mahr, D. (2016). Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders. Journal of Business Research, 69(2), 525-540.
Lozano, R. (2015). A holistic perspective on corporate sustainability drivers. Corporate Social Responsibility and Environmental Management, 22(1), 32-44.
Stubbs, W., & Higgins, C. (2014). Integrated reporting and internal mechanisms of change. Accounting, Auditing & Accountability Journal, 27(7), 1068-1089.