Impact of business aims and objectives on stakeholders
Business aims and objectives can have several impacts on each business stakeholder. It is often very difficult for businesses to achieve aims and objectives that make all stakeholders happy. Ways in which stakeholders are affected by business aims and objectives include financial, employment, operational, social, products and services.
Scenario:
A business manufactures and sells plastic garden products. The business is currently based in London at an expensive warehouse and sells products through its nationwide sales team and outlet shop. The business has decided that rent in London is too expensive, so they want to move the warehouse to Manchester. The business has found a suitable, larger warehouse near a housing estate in Manchester, that has been derelict for a number of years.
| Stakeholder | Area of impact | Impact of aims and objectives |
| Shareholders and owners | Financial/Operational | Will gain more profit in the long term through moving to a cheaper location, however in the short term they may have to invest some of the profits back into the business. |
| Managers and employees | Operational/Employment/Products and services | Managers and employees may have to either leave the business or relocate to the new business location. Managers will focus on ensuring the business can make the move with the least amount of disruption possible. Employees may need new training in the new business location. |
| Customers | Products and services | Customers will expect the same service from the business through the sales team. Local customers will change as customers are not likely to travel to the new business location. |
| Suppliers | Operational | Suppliers may experience a change in demand for products for a period of time. The business may have to change and delay orders until their new warehouse is fully prepared. |
| Local community | Products and services/Environmental/Jobs | The local community will experience regular deliveries and an increase of vehicles in the area. The business may have to interact with the local community to make them understand the benefits of the business. The local community may also gain new jobs. |
| Government | Employment/Financial | The government will benefit from new employees in Manchester, but will be disadvantaged by unemployment in London. Financially, the business may be able to grow thanks to a larger warehouse, this would mean the government would gain more in taxes. |
| Stakeholder | Shareholders and owners |
|---|---|
| Area of impact | Financial/Operational |
| Impact of aims and objectives | Will gain more profit in the long term through moving to a cheaper location, however in the short term they may have to invest some of the profits back into the business. |
| Stakeholder | Managers and employees |
|---|---|
| Area of impact | Operational/Employment/Products and services |
| Impact of aims and objectives | Managers and employees may have to either leave the business or relocate to the new business location. Managers will focus on ensuring the business can make the move with the least amount of disruption possible. Employees may need new training in the new business location. |
| Stakeholder | Customers |
|---|---|
| Area of impact | Products and services |
| Impact of aims and objectives | Customers will expect the same service from the business through the sales team. Local customers will change as customers are not likely to travel to the new business location. |
| Stakeholder | Suppliers |
|---|---|
| Area of impact | Operational |
| Impact of aims and objectives | Suppliers may experience a change in demand for products for a period of time. The business may have to change and delay orders until their new warehouse is fully prepared. |
| Stakeholder | Local community |
|---|---|
| Area of impact | Products and services/Environmental/Jobs |
| Impact of aims and objectives | The local community will experience regular deliveries and an increase of vehicles in the area. The business may have to interact with the local community to make them understand the benefits of the business. The local community may also gain new jobs. |
| Stakeholder | Government |
|---|---|
| Area of impact | Employment/Financial |
| Impact of aims and objectives | The government will benefit from new employees in Manchester, but will be disadvantaged by unemployment in London. Financially, the business may be able to grow thanks to a larger warehouse, this would mean the government would gain more in taxes. |
