Critically Examine the Connections Between Stakeholder Claims and the Product Market. Use an Extended Example to Illustrate Your Point.

1127 WordsNov 16, 20115 Pages
Various stakeholders have the right to influence the decisions that the company makes since they directly command respect from these companies. Due to the influence exerted by shareholders, business policies must be formulated to fit the needs of most if not all stakeholders so as to have successful businesses. Stakeholders are all individuals and organizations that are related to the company in one way or another. The term stake is usually taken to mean a portion or share in the business. Examples include shareholders, employees, partners and investors. Stakeholders are further defined as those groups or individuals that affect the day to day running of the business and those that the business affects. It is at this juncture that the…show more content…
Increasing prices subject to other substitutes in the market will most certainly reduce the demand of the product leading to a shrink in the market share. Whenever a new product is introduced in the market also, the product market is affected as consumers rush to test the new product. Quality is very essential as it provides the business with constant market once the customers have gained confidence in the product. In the same way, decrease in quality will drive the market away. INFLUENCE OF EMPLOYEES ON THE PRODUCT MARKET Apart from consumers, other stakeholders play a role in the product market situation. We note that the policies and procedures in the organization will directly influence the status in the product market. Any stakeholder claims that affect the operations of the business will therefore affect the product market even though not directly. To understand this better, let us take an example of employees. These are the people who are directly concerned with the production. If proper coordination is not implemented, it is likely that the final outcome will be poor products. As discussed earlier, poor quality products will do poorly in the product market. Employees have claims in the business such as right to remuneration; insurance packages and fair treatment in terms of education and promotion (IMPROVE). Challenges with employees can also come up where trade unions are involved. Trade union's claim in the business is demand for fair treatment,

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