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Case study - Essay Example

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Instructor Date Analysis of the Operations of Garden City Ltd Part 1 Stakeholder analysis A stakeholder is any group or individual whose actions can have an impact on or can be impacted by an organisation’s performance (Freeman 1984). In order to be successful at making changes to the organisation the management at Garden City Ltd needs to be able to identify its stakeholders and where possible gain an understanding of their man interest and any potential for conflict…
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The potential for conflict arses when the conditions under which the service is provided is poor. High High High Identify their changing needs and make the necessary changes to facilitate them Suppliers Interested in continued business with the company. Conflict can arise when they also compete with Garden City Ltd Moderate Moderate Moderate Ensure that more than one supplier is used so that shortages can be avoided. Employees Interested in maintaining their jobs Moderate Moderate Moderate Train them and ensure that they are motivated so that they can provide quality customer service Shareholders Interested in the profitability of the business and maintaining or improving their net worth. Moderate Moderate Moderate Ensure that the business maintains or increases its value so that they can sell their shares easily. Manage it in such a way that people will be willing to invest in the company The Community Interested in the continuity of the business. Potential for conflicts may arise if the company is not obeying government rules and regulations Low to Moderate Moderate Moderate The company needs to ensure that it meets its obligations in relation to the environment and make contributions to the uplift the community. Loan Creditors Collecting debts as they fall due. Borrowing in excess of certain limits and expending funds on unprofitable projects place them at risk and are likely to cause conflicts. Moderate Moderate Moderate Avoid conflicts and ensure business continuity by ensuring that agreements are adhered to. The table shows six of the stakeholders of Garden City Ltd - customers, suppliers, employees, shareholders, the community in which the business is operated and loan creditors. It shows their main interest and matters that could potentially cause conflict. It also shows their level of influence, importance and net impact. Based on the information provided by Sally the customers are the stakeholders with a high level of power and influence, importance and net impact. It therefore means their needs should be satisfied if Garden City Ltd wishes to remain in business. The other stakeholders are not as influential and important as customers. Without customers the business ceases to exist. However, it is important to note that loan creditors can wield a lot of power, especially when a company is in financial distress. A business’s ability to remain in good favour with loan creditors depends on how its finances are managed and whether it discharges its obligations when they are due. Anything to the contrary may result in loan creditors using their powers to take over the assets of the business. Although the shareholders are owners of the business the influence that they wield depends on the percentage of shares that they own. The decisions that management makes are highly likely to coincide with the interest of the customers. Maintaining shareholder value is of paramount importance. The community has the power to bind the company to act in accordance with government regulations. It is through the community that companies find a supply of workers to ... Read More
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