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Investigating how businesses are organised and the influences of stakeholders

Topics: Types of companies, Corporation, Legal entities / Pages: 11 (3748 words) / Published: Oct 29th, 2014
Information Pack for Entrepreneurs
Investigating how Businesses are organised and the influences of Stakeholders
Produced by: Brodie-Dee Johnson
Business: NBV Enterprise Solutions
Business Advisor: Brodie-Dee Johnson
Submission Date: October 2nd 2014
Lecturer: Julie O’Callaghan
Content Page:
Introduction: Introduction to the company, and what I do – Page 3
Section 1: The two types of Business’, their purpose and ownership Page 4
Section2: Different Stakeholders who influence the purpose Page 5/6
Section 3: Points of Views from different stakeholders Page 7/8
Section 4: Evaluation of the influences with advantages and disadvantages Page 9/10
Section 5:
Section 6:
Reference Page: Page 13

Introduction (P1)
NBV Enterprise Solutions Ltd is a not-for-profit company founded in 1982 to support people considering starting their own business, or looking for help to grow an existing enterprise. NVB is based in the middle of East Midlands with sites that stretch across the region. We also have a 30 years’ experience and a record of delivering support to the community. We also offer a wide range of dynamics and creative services including:
One-to-one business advice
Skill development workshops
Networking activities
Mentoring Support
We are named as one of the leading business support agencies in the UK we are recognised as a model of good practice by the government departments such as BIS and CLG.
We are a small to medium business, to transform communities. We are a source of innovation and new ideas, SME’S provide over 50% of the nation GDP. We also generate a lot more jobs overall than established companies. In addition to all of this, starting a new business can change a person life enabling them to live their ambitions and live the life that they wish with confidence and to broaden skills. Our target audience is people that want to start a new business or anyone that is looking to help an existing company to grow.
“My job role within this company is a Business Advisor I can help people find out where and why a business is going wrong and I can give advice on how to turn it around. In addition, I can also help assist people with development of a new business or a new branch of an existing business. Working with a Business Advisor can be extremely beneficial I have years of experience along with years of knowledge which is gained through working with numerous types of business’. I am willing to help you succeed no matter what the situation is.”
Section 1 (P1)
Honey Pot
Honey Pot is a national not-for-profit company that have helped and continues to help with thousands of children across the UK. Most of the children they help are young carers who have school, growing up and preforming a surrogate adult role at home. Many for a chronically ill loved one, or have a parent that take drugs, alcohol or have a mental health problem. Some will have been in a caring role since the age as young as 5 years old, 24 hours a day 365 days a year. The way honey pot help is that they proved support to the children that need it the most. Honey pot help by giving the children the time of that they deserve along with care for their loved ones that they are caring for. Before a child begins with Honey Pot the first stage is a referral from someone already working with a child in need; school, social worker, doctor, health visitor, community organisation or young carer. A home visit will be arranged with the child and their family. This proved an opportunity for them to assess each child’s situation and individual needs. It’s also the way they learn about the child’s personality, hobbies, likes and dislikes and what they expect from Honey Pot. They also speak to the children to help them understand what they are doing to help them. Honey Pot is in the Tertiary Sector as they provide a service to children free of charge, but they do this by receiving donations from the public to help them carry out the company. The company is a not-for-profit company, as they offer the free of charge service to the child which is funded by the donations of people. The size of the company varies as there are so many volunteers the company is estimated to be a medium sized company which is less than 250 employees.
Coca Cola Enterprise
Coca Cola Enterprise LTD. (CCE) is a European company that makes sells and distributes Coca-Cola products and other soft drinks around Great Britain. CCE offer their customers a complete choice of soft drinks for every occasion. They sell over four billion bottles and cans in just GB alone a year. CCE are a Secondary and Tertiary sector as they manufacture and sell the product which makes them in both of the sectors. CCE LTD, are a private company however their parent company which is a global company but it is Public company meaning that the Public can buy a share via the stock exchange. In the CCE there are over 4,000 system employees including their bottling partners in 2013 and the company is still growing. Being a private or public limited business means that the owner is not personally responsible for the debt of the business.
Section 2 (P2)
Stakeholder: A stakeholder is any person, organisation, social group or society at large that has a stake in the business. Stakeholders can be internal or external to the business. A stakeholder has a vital interest in the business or its activities. It can include ownership and property interests, legal interests, obligations and moral rights. A legal obligation may be the duty to pay wages. A moral right may include the right of a consumer not be intentionally harmed by business activities. Stakeholders can:
Affect a business
Be affected by a business
Coco Cola Enterprise
Types of Stakeholders Description of Stakeholders
Owners The main concern of the Owners would be profitability, high market share and being able to grow in the market. Another concern for an owner would be to have customer satisfaction to make sure that the company remain successful. Without customer satisfaction all of the above will not be relevant anymore as the customers won’t have a good image of the business,
Employees Employees care about the rate of pay that they receive, respect from other colleagues and from higher authority and having clear communication between staff and customers. If employees are unhappy with the business would run smoothly which would have a negative effect on productivity.
Suppliers Suppliers priorities are to be able to deliver products of high quality on time to the business they supply to and keep the relationship between them and the business at a high point in order to maintain this.
Customers Customers are concerned about the value of the product they are paying for and if the quality of the product is up to the standards that they expect. Customer care is a strong point that customers focus on in the business.
Local Community The local community would be concerned for the businesses success due to the face the business closes down; the unemployment level would rise in that area. Local communities may not be happy with a business if it is causing environmental harms or if the business is not being honest with the community about the information that is given to the public.
Government The government objectives and cares in a business would be to make sure the company is following the law and its regulations, paying taxes and by ensuring there is diversity amongst employees and how the business contributes to the UK economy.
Competitors Competitors of a company would be bothered about knowing how well another business is doing, what market share percentage they have and the prices of their products/service.
The Honey Pot’s Stakeholders.
Types of Stakeholders Description of Stakeholders
Owners Owners would want the business to have a good public reputation in order to maintain high customer satisfaction.
Employees Employees would want to see that the business stays open in order to stay employed but also to maintain a high profit intake in order to carrying on helping and keep their customers happy.
Suppliers Supplier’s main concerns are to make sure that the business stays running and that the company is liable to pay credit.
The Children they help The Children wouldn’t want to see the business close as the children enjoy the break from having to look after their loved ones so they would want to see the business stay open as they are the customers they would lose a service and care.
Government The government fund The Honey Pot and they would want to see the charity stay open because the charity takes care of children and their loved ones that are seriously ill. Having the charity open would also mean that less children are off the streets at night time when they will be, being cared for.
Donators Donators to the charity will be looking for the outcome of what the charity has to offer and what good it brings to the community. As the donator is the one that is supplying the company with everything they will want to see some positive outcomes and make sure that everything is running smoothly.
Section 3 (M1)
Stakeholders of an organisation have a great impact on the business, every stakeholder has a different opinion and tires to influence the business in a way that will be in benefit to them to therefore in this report I will explain conflicts might arise between two different stakeholders and how they influence my two chosen organisations.
Owners: Coca-Cola’s owner’s aim is for the business to be as successful as possible. The owners might be seeking to increase prices in order to maximize profit and meet the needs of shareholders. All the final decisions are up to the management which makes their opinion very influential on the organisation. Their purpose of the company is to provide customers with top value products that satisfy the customer’s needs. Their objectives are to sell to the customers which means they could expand.
Customers: Customers are also very important and strong stakeholders especially in companies such as Coca-Cola as they are the final users of the product and their expectations have to be met. At times customers can be very demanding and which puts a lot of pressure on the owner. CCE provide their customers with top quality products as if they didn’t then their customers would stop purchasing their items meaning business to be slow.
Employees: They would want to earn high wages and keep their jobs. Employee is more of an internal stakeholder. Their stake is that the company provides them with a livelihood. They seek security of employment, promotion opportunities and good rates of reward. Their main objectives are likely to involve improving working conditions and improving their wages. CCE provide well trained and friendly employees meaning that the quality of the business is obtained.
Government: The Government want a business to be successful, to create jobs and to pay taxes. They want to see prosperous businesses that take a full responsibility in looking after the welfare of society. They are not directly involved in decisions with Coca-Cola but however it can be a major influence on decisions, for example; by introducing laws. The government will want their business to do well since this will create more jobs and bring in more tax. CCE apply this by running the business to be as successful as possible that means keeping up on sales, making profit.
Local Community: The Local Community would want the company to stay open as it is providing some jobs in that local area. Also if the local community aren’t happy with the business it may cause some disturbance in the local area and will have a negative influence on the business. CCE do this by keeping the local people around their business happy therefore their won’t be any disturbance in the local area.
Suppliers: Suppliers want someone that they can continuously sell their goods to an on regular basis, if the suppliers don’t pay their employees it will affect Coca-Cola as they won’t be able to make any products in order to keep the business going. If the suppliers end up not being able to deliver to CCE then CCE won’t be able to make products in order to sell to their customers and making them happy. The Honey Pot
Owners: The Honey Pots might want to expand in order to help more children; therefore they will have to raise more money in order to expand the business. The only people that can get in the way of their aims are the people that donate.
Employees/Volunteers: The volunteers at Honey Pot are the reason that the company is as successful as without the volunteers the company would not be running. So their aims are to help the children.
Donators: The suppliers but in this case are the people that donate money; as they supply them with money in order for the company to stay open. So without the suppliers the business would not stay open. The supplier’s main aim is to see what their money is doing to help the company, they like to see progress in the business and what they have helped to achieve.
The Children: The children are the customers, as the whole reason for this business is to keep the children safe and help them mature. So the children depend on the company and their service to help them with school work and help them have a break from looking after their loved ones.
Government: The government also help the company stay open, so the government aims and objectives are to see how the company is helping so with evidence that they’re supporting the children. They would also depend on the company for keeping the children healthy and well. The government’s main interests are that the charity is operating in accordance to the laws regulations which relates to the running of the charity. Also how the charity helps the local communities and the most vulnerable children in society. So the main

Section 4 (D1)
Every company/business has stakeholders; these are groups or individuals that affect or are affected by the business. The number of stakeholder of a business varies as does their importance and influence. The type of organisation and product or service it supplies also determines it stakeholders. An organisation such as Coca-Cola has far more stakeholders than a family orientated business; it is therefore much more influence and affected by the actions, aims and objectives of its stakeholders. In this report I will evaluate the advantages and the disadvantages of three stakeholders; Employees, Suppliers and Customers of Coca-Cola.
Employees are very influential stakeholders of Coca-Cola Enterprise and they are one of the most important for the running of the organisation. CCE has around 700,000 employees who have a high influence on the organisation. Satisfaction and performance of employees fully depends on the way human resources are managed in a company. Employee’s main interest is salaries, wages, and job satisfaction; all these influence the company’s staff turnover, industrial action and the quality of the product and/or service. CCE must consider a lot of factors when employing new staff and managing the existing staff. Employees can affect and influence in various ways and due to various reasons, some of which are: skills and qualifications, personal views and opinions, employee performance, training and redundancy.
Since employees are one of the main stakeholders and are the human resources of the company their performance highly affects CCE. If employees are not satisfied with the wages or the working environment the product and the service will not be satisfactory quality either and this will result in poor publicity. Motivation is one of the methods used by HR to improve employee performance as when employees feel unmotivated they tend to perform poorly e.g. an amount of soft drinks produced per day would highly decrease, employees are likely to leave the work place in order to find a job where they feel much more comfortable because a good working environment is also a factor that motivates employees into preforming well.
Employee’s skills and qualifications are a very important aspect because if employees don’t have the right skills to perform a specific task essential to the production system it will slow down the process of the whole production and decrease the quality of the product resulting in a company making less profit then they normally would. The wages and working hours of an employee have to be fair according to their position because this will also affect their performance, staff that is not satisfied with the wages will simply leave the job causing CCE to spend money on costs such as; finding new staff and training.
I would like to give an article about workers for CCE in a 24-hour strike on this was published on July 28th 2011 this is evidence of how important employees are as stakeholders. Employees transporting Coca-Cola products across the country staged a 24-hour strike in a row over pay. This issue was raised due to the company refusing to give the distribution staff a fair pay rise. Coca-Cola was highly affected by the strike as the bottling company make around two million bottles in 24 hours, meaning that day the company made a loss equivalent to two million bottles that could have been produced and sold. This is blatantly at disadvantage to the company as they lost out on their everyday sales. However to the employees this is an advantage to the employees as this proves that the company needs their employees to help them stay in business, so with the strike this proves to the owners that they are needed and the owner will agree to a pay rise as they will need the employees to get back as soon as possible.
Suppliers are also a massive influence and play a huge role to the organisation. Supplier’s main interests from an organisation are; long term contracts, prompt payment and growth of purchasing. Suppliers influence the pricing, quality and product availability. Suppliers affect the availability of the product based on their inventory and delivery time. This could be seen as a disadvantage to the company as, if the suppliers don’t have enough supply’s for the company it will limit how much CCE can make limiting their productivity and the profits made. Also if the supply’s arrive later than the agreed time the company will simply not be able to continue their production and day to day running of the business unless they have extra supply’s in reserve. CCE suppliers provide their system with material, including ingredients, packaging and machinery as well as goods and services; without any of these resources the efficiency of CCE production will decrease. An increase of the costs of supply’s can go two ways; the business would either have to increase the price of the product to be able to cover the rest of the costs or they refuse to continue buying from that certain supplier affecting the quality of the product. The advantage of a supplier is when they give the company they are supplying, cheap supply’s as it will help CCE have a greater profit. However if the company increases their price of supply’s then this is seen as a great disadvantage as this will make CCE loose revenue. The CCE website states that all their suppliers are expected to conduct business in an ethical manner and comply with all applicable laws and regulations. It also states that that suppliers provided with training and assistance programs if there are where they are to improve their operation. Suppliers for the CCE system are expected to operate their business according to the highest standards of business conduct, labour rights, quality and service. Coca-Cola Enterprise went against human rights and ecology in 2006 reported by; the suppliers have been buying materials from El Salvador companies that practise child labour. This will be seen as a disadvantage to CCE as the suppliers have provided CCE with products that have been practised on by child labour. This will be a disadvantage because, it will make the company seem like they acknowledge child labour and that they see it as a good thing. This will make people stop buying from CCE and their profits will drop low as they will no longer be selling.
Customers are the biggest influence on the company because without the customers the company wouldn’t be making any sales therefore the company would be shut down. The customer’s main interests are that the product is at the highest standards and at the cheapest price. Customers influence the stock, the amount is made and the amount is sold. As the incident in 2006 that happened when suppliers bought from a company in El Salvador that practises child labour, this would have affected the company in one of two ways; One being that customers would have found out what had happened they would have stopped buying the products that have been produced to sell. This would have affected their sales, causing a decrease in stock outtake. The company would have had to throw out all previous stock and start again. This would have left them with no stock and minus money. This is seen as a huge disadvantage as, the customers would have lost interest in buying from CCE as it seems that they had been supporting child labour.
Customers also influence how much stock is made on a daily basis as; if customers buy more products from shops this will make CCE produce more products. This will be seen as an advantage as the more products that are made the more profit that is made for the company, enabling them to expand. This can also be seen as a disadvantage because if there is only a raise in the market for a few months then the stock suddenly drops down and CCE are still making more products there will be too much stock made meaning that CCE will have to keep products meaning that they lose out of profit.

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