• Managers: A manager is an individual who takes lead of group tasks and makes sure that all workers are doing their jobs at the correct standard. Workers can give the manager feedback about how their projects to help the poor ones have been. Managers should be allowed have the chance to be promoted however in Oxfam, it is a rare chance that you will be promoted and sometimes will not be able to make decisions; this causes conflict. This could happen by a manager not feeling like they are a part of the Oxfam team because their views are not being reflected and their orders to workers are not being listened to by other members of staff.
• Donors: A donor is someone who donates material or a possession with their own kindness. Most donors donate materials for OXFAM and this is useful as it could be given to someone in need or can be sold. The materials may be clothes, food or money. They will have an interest in Oxfam because the growth of Oxfam will make the business more aware to people and it could maybe one day be known all over the world. If donors stop donating, it could make OXFAM go bankrupt and the people in need will stop being helped; this is why donors are important.
• Suppliers: Suppliers are the people that supply services and goods to a business. For a business to gain a good relationship with a business, the business will need to pay the supplier on time and to always be ordering items from them. Suppliers can gain a good relationship with the business by providing the business with high quality products or a good service. Oxfam depend on their suppliers for materials that they could use to help the people in need of them. There could be conflict if Oxfam does not pay the supplier on time or if the supplier is not giving good quality items; the business can either goes to a different supplier or the supplier could let go of Oxfam.
• Government: The government are liable for making sure businesses know the rules and regulations that they will need to listen to. The government will need to ensure that businesses are giving the right amount tax from business profits. This could be hard for Oxfam because if a percentage of their profits are taken for tax, they will get less money and could not cover all their costs and could go bankrupt.
The influence of stakeholders on business success
• Stakeholders can influence business success. The London Stock Exchange is where public limited companies offer shares in the company. This rises funding for the business by selling off parts of it as shares. Shareholders are looking for value for money; in business terms this is called shareholder value.
• As you probably know, the value of these shares can go down as well as up and therefore shareholders are keen to ensure their investment is worthwhile. This can create a tension between those who run the business and those who simply have an interest in it. Shareholders vote on proposals for the way the business is run, which depends on majority votes.
• Customers are also stakeholders and should be considered as long-term assets. Customers who feel valued and receive a good service are more likely to remain loyal. Strong customer service, such as that provided by M&S, enables customer retention.
As employees are stakeholders of the business they contribute to the success of the business, whether it is as a direct or indirect result of their actions.
• Effective business communications: Without effective business communications, a business is unlikely to succeed. So far in this unit, you have learned about a variety of businesses from different sectors and of different sizes. Since the latter part of the 20th century, people have relied on the introduction and development of digital communications and, as you will explore shortly, these require a different approach towards how to communicate with the diverse audiences with which businesses need to engage.
Importance of communication to aid business success:
• Social media can be a great way of promoting a small business and getting it known across a wider community. Regardless of business size, social media is being used more widely each year and those dominating business communications include Facebook, Instagram and Twitter. Government offices also rely on social media. Although there are reservations about using social media, it can reap rewards if it is used responsibly.