A business and is interested in how the

A stakeholder is a person or group of people that are
interested in a business and its behaviours. There are two types of
stakeholder, internal and external. An internal stakeholder is someone who
works within the business and therefore is interested in its behaviours e.g. an
employee. An external stakeholder is someone who doesn’t work within a business
and is interested in how the business behaves e.g. a customer.

Business one: Adidas

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Owners – Adidas’ owners are stakeholders in the company.
They are internal stakeholders so the business would have to communicate
through internal form of communication. The most common way the owners would
communicate is email. This is because they have to contact both other owners
and those that are below, and email allows horizontal and vertical
communication to occur. Owners can make the business more profitable by the
business decisions they make. The business keeps the owners happy by being run
smoothly and bringing in profits

Customers – The customers such as footballers who need to buy
football boots are stakeholders in Adidas as they are interested in the price
that Adidas values its goods. They are external stakeholders so they don’t
affect the way the business runs but are affected by it. Adidas communicates
with the customers via written communication, by showing the price of its
goods, either in store or on its website. This is the most effective way of
communicating as it allows the business to communicate with all the customers.
Customers are an important stakeholder because they buy the firms product and
keep the firm running. Adidas can keep consumers happy by keeping prices low
and selling high quality products

Suppliers – the suppliers such as shoe makers are external
stakeholders in Adidas. This is because they are only influenced by Adidas’
profits, and can’t make decisions on how the business operates. They are
interested in Adidas because if Adidas doesn’t do well, then the supplier would
lose a big customer. Adidas communicates with its suppliers by emails and
financial documents. This is the best way for Adidas to communicate with its
suppliers because it allows the supplier to know what is going on with Adidas
and it allows Adidas to understand what is going on with its supplier.
Suppliers are important as they provide Adidas with the resources they need for
it to run. Adidas keeps suppliers happy by buying materials from them.

Competitors – Adidas’ competitors such as Nike are external
stakeholders in the business because they want to know how much the business is
charging for items. This is so the competitors can charge a similar price for a
similar product and attract customers to their business instead. Adidas
communicate with their competitors via written communication on catalogues and
websites. The business should keep a good relationship with its competitors as
it allows both businesses to develop new products and generate the most profit
while keeping demand high and prices low.

Employees – employees such as managers are internal
stakeholders in Adidas. This is because they work for the business and are
influenced by its decisions. Employees are important to Adidas as if they
aren’t kept satisfied, they will not sell its goods and will cost the business
a huge amount of money. Adidas communicates with its employees through
different forms of horizontal and vertical communication. Also, employees
communicate with customers via different forms of communication, both
non-verbally i.e. body language and verbally i.e. promoting Adidas goods.
Employees are a stakeholder that Adidas should keep happy because they sell the
product and if they don’t sell, then Adidas doesn’t make any profits.  Adidas keeps employees happy by treating them
fairly and paying them well.  

Government – The government and legal bodies such as the
health and safety executive are external stakeholders in Adidas. This is
because they are interested in how Adidas runs and ensures that it operates
legally. They communicate with the Government via official documents such as
certificate of corporation. The Government is kept happy by Adidas as long as
Adidas keeps the official documentation and they operate legally. Adidas should
keep the Government happy as if the Government aren’t satisfied with how Adidas
runs, then they can shut Adidas down.

Business two: Screwfix

Owners – The owners of Screwfix are internal stakeholders so
the business would have to communicate through internal forms of communication.
The most common way the owners would communicate is email. This is because they
have to contact both other owners and those that are below, and email allows
horizontal and vertical communication to occur. Screwfix owners are important
because they make business decisions that affect all stakeholders. The business
keeps the owners happy by being run smoothly and bringing in profits.

Customers – Customers of Screwfix such as electricians are
stakeholders because they are influenced by the way Screwfix price their goods.
They are external stakeholders so they don’t affect the way the business runs
but are affected by it. Screwfix communicates with the customers via written
communication, by showing the price of its goods, either in store, on its
website or in its catalogue. This is the most effective way of communicating as
it allows Screwfix to communicate with all the customers at once. Customers are
an important stakeholder because they buy the firms product and keep the firm
running. Screwfix can keep consumers happy by having high quality products at
an affordable price.

Suppliers – the suppliers to Screwfix such as Dewalt, who
supply tools to Screwfix, are external stakeholders. They are interested in Screwfix
because if Screwfix doesn’t do well, then the supplier would lose a big
customer. Screwfix communicates with its suppliers by emails and financial
documents. This is the best way for Screwfix to communicate with its suppliers
because it allows the supplier to know what is going on with Screwfix and it
allows Screwfix to understand what is going on with its supplier. Suppliers are
important as they provide Screwfix with the resources they need for Screwfix to
operate. Screwfix keeps suppliers happy by buying materials from them.

Competitors – competitors to Screwfix such as Toolstation are
external stakeholders in the business because they want to know how much the
business is charging for items. This is so the competitors can charge a similar
price for a similar product and attract customers to their business instead. Screwfix
communicate with their competitors via written communication on catalogues and
websites. The business should keep a good relationship with its competitors as
it allows both businesses to develop new products and generate the most profit
while keeping demand high and prices low.

Employees – employees such as store staff are internal
stakeholders in Screwfix. This is because they work for the business and are
influenced by its decisions. Employees are important to Screwfix as if they
aren’t kept satisfied, they will not sell its goods and will cost Screwfix a
huge amount of money. Screwfix communicates with its employees through
different forms of horizontal and vertical communication. Also, employees
communicate with customers via different forms of communication, both non-verbally
i.e. body language and verbally i.e. promoting Screwfix’s goods. Employees are a
stakeholder that Screwfix should keep happy because they sell the product and if
they don’t sell, then Screwfix doesn’t make any profits. Screwfix keeps
employees happy by treating them fairly and paying them well. 

Government – The government and legal bodies such as the
health and safety executive are external stakeholders in Screwfix. This is
because they are interested in how Screwfix runs and ensures that it operates
within the law. They communicate with the Government via official documents
such as certificate of corporation. The Government is kept happy by Screwfix as
long as Screwfix keeps the official documentation and they operate legally.
Screwfix should keep the Government happy as if the Government aren’t satisfied
with how Screwfix runs, they can shut Screwfix down.

Overall, I think the customers are the stakeholders who will
have the biggest impact on the business because their demand keeps the business
running and if they don’t demand the firms’ goods/services then the firm will
no longer be able to operate and will have to shut down. Effective
communication with customers means that customers know what the business sells
and at what prices, leading to the customer choosing to buy from one firm over
another competitor.