A business and is interested in how the

A stakeholder is a person or group of people that areinterested in a business and its behaviours.

There are two types ofstakeholder, internal and external. An internal stakeholder is someone whoworks within the business and therefore is interested in its behaviours e.g. anemployee. An external stakeholder is someone who doesn’t work within a businessand is interested in how the business behaves e.g.

a customer.Business one: AdidasOwners – Adidas’ owners are stakeholders in the company.They are internal stakeholders so the business would have to communicatethrough internal form of communication. The most common way the owners wouldcommunicate is email. This is because they have to contact both other ownersand those that are below, and email allows horizontal and verticalcommunication to occur.

Owners can make the business more profitable by thebusiness decisions they make. The business keeps the owners happy by being runsmoothly and bringing in profitsCustomers – The customers such as footballers who need to buyfootball boots are stakeholders in Adidas as they are interested in the pricethat Adidas values its goods. They are external stakeholders so they don’taffect the way the business runs but are affected by it. Adidas communicateswith the customers via written communication, by showing the price of itsgoods, either in store or on its website.

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This is the most effective way ofcommunicating as it allows the business to communicate with all the customers.Customers are an important stakeholder because they buy the firms product andkeep the firm running. Adidas can keep consumers happy by keeping prices lowand selling high quality products Suppliers – the suppliers such as shoe makers are externalstakeholders in Adidas. This is because they are only influenced by Adidas’profits, and can’t make decisions on how the business operates.

They areinterested in Adidas because if Adidas doesn’t do well, then the supplier wouldlose a big customer. Adidas communicates with its suppliers by emails andfinancial documents. This is the best way for Adidas to communicate with itssuppliers because it allows the supplier to know what is going on with Adidasand it allows Adidas to understand what is going on with its supplier.Suppliers are important as they provide Adidas with the resources they need forit to run.

Adidas keeps suppliers happy by buying materials from them. Competitors – Adidas’ competitors such as Nike are externalstakeholders in the business because they want to know how much the business ischarging for items. This is so the competitors can charge a similar price for asimilar product and attract customers to their business instead. Adidascommunicate with their competitors via written communication on catalogues andwebsites.

The business should keep a good relationship with its competitors asit allows both businesses to develop new products and generate the most profitwhile keeping demand high and prices low. Employees – employees such as managers are internalstakeholders in Adidas. This is because they work for the business and areinfluenced by its decisions. Employees are important to Adidas as if theyaren’t kept satisfied, they will not sell its goods and will cost the businessa huge amount of money. Adidas communicates with its employees throughdifferent forms of horizontal and vertical communication. Also, employeescommunicate with customers via different forms of communication, bothnon-verbally i.e. body language and verbally i.

e. promoting Adidas goods.Employees are a stakeholder that Adidas should keep happy because they sell theproduct and if they don’t sell, then Adidas doesn’t make any profits.  Adidas keeps employees happy by treating themfairly and paying them well.  Government – The government and legal bodies such as thehealth and safety executive are external stakeholders in Adidas.

This isbecause they are interested in how Adidas runs and ensures that it operateslegally. They communicate with the Government via official documents such ascertificate of corporation. The Government is kept happy by Adidas as long asAdidas keeps the official documentation and they operate legally. Adidas shouldkeep the Government happy as if the Government aren’t satisfied with how Adidasruns, then they can shut Adidas down.Business two: Screwfix Owners – The owners of Screwfix are internal stakeholders sothe business would have to communicate through internal forms of communication.The most common way the owners would communicate is email. This is because theyhave to contact both other owners and those that are below, and email allowshorizontal and vertical communication to occur. Screwfix owners are importantbecause they make business decisions that affect all stakeholders.

The businesskeeps the owners happy by being run smoothly and bringing in profits.Customers – Customers of Screwfix such as electricians arestakeholders because they are influenced by the way Screwfix price their goods.They are external stakeholders so they don’t affect the way the business runsbut are affected by it. Screwfix communicates with the customers via writtencommunication, by showing the price of its goods, either in store, on itswebsite or in its catalogue. This is the most effective way of communicating asit allows Screwfix to communicate with all the customers at once.

Customers arean important stakeholder because they buy the firms product and keep the firmrunning. Screwfix can keep consumers happy by having high quality products atan affordable price.Suppliers – the suppliers to Screwfix such as Dewalt, whosupply tools to Screwfix, are external stakeholders. They are interested in Screwfixbecause if Screwfix doesn’t do well, then the supplier would lose a bigcustomer. Screwfix communicates with its suppliers by emails and financialdocuments. This is the best way for Screwfix to communicate with its suppliersbecause it allows the supplier to know what is going on with Screwfix and itallows Screwfix to understand what is going on with its supplier. Suppliers areimportant as they provide Screwfix with the resources they need for Screwfix tooperate. Screwfix keeps suppliers happy by buying materials from them.

Competitors – competitors to Screwfix such as Toolstation areexternal stakeholders in the business because they want to know how much thebusiness is charging for items. This is so the competitors can charge a similarprice for a similar product and attract customers to their business instead. Screwfixcommunicate with their competitors via written communication on catalogues andwebsites. The business should keep a good relationship with its competitors asit allows both businesses to develop new products and generate the most profitwhile keeping demand high and prices low.Employees – employees such as store staff are internalstakeholders in Screwfix.

This is because they work for the business and areinfluenced by its decisions. Employees are important to Screwfix as if theyaren’t kept satisfied, they will not sell its goods and will cost Screwfix ahuge amount of money. Screwfix communicates with its employees throughdifferent forms of horizontal and vertical communication. Also, employeescommunicate with customers via different forms of communication, both non-verballyi.e.

body language and verbally i.e. promoting Screwfix’s goods. Employees are astakeholder that Screwfix should keep happy because they sell the product and ifthey don’t sell, then Screwfix doesn’t make any profits. Screwfix keepsemployees happy by treating them fairly and paying them well.

  Government – The government and legal bodies such as thehealth and safety executive are external stakeholders in Screwfix. This isbecause they are interested in how Screwfix runs and ensures that it operateswithin the law. They communicate with the Government via official documentssuch as certificate of corporation. The Government is kept happy by Screwfix aslong as Screwfix keeps the official documentation and they operate legally.Screwfix should keep the Government happy as if the Government aren’t satisfiedwith how Screwfix runs, they can shut Screwfix down.Overall, I think the customers are the stakeholders who willhave the biggest impact on the business because their demand keeps the businessrunning and if they don’t demand the firms’ goods/services then the firm willno longer be able to operate and will have to shut down. Effectivecommunication with customers means that customers know what the business sellsand at what prices, leading to the customer choosing to buy from one firm overanother competitor.