In this assignment I will be evaluating the influence different stakeholders have in one organisation. A stakeholder is someone who takes an interest in a business whether it being small or big. For example, in Nike, a stakeholder could be an employee or a customer as they would have to take massive interest in the business.
Out of the two businesses I chose for P2 and M1, I will choose newsagents.
The first stakeholder I will evaluate is customers. In a newsagent, customers are the businesses main source of finance; this is because the customer’s main influence is to buy the newsagent’s products and services. Customers are external stakeholders which mean they influence or are influenced by the business but are not a part of it. The main reason for people being stakeholders would be for financial reasons and customers are no different. Customers go to newsagents because they can provide local convenience by selling cheaply priced goods and services that maybe supermarkets such a Sainsbury’s and Tesco’s may sell at a higher price.
The biggest influence that a customer does which would help a business such as newsagents flow is customer loyalty. This means that a customer regularly visits the shop for whatever they may need. What this does is create a friendship between the customers and business which means that the customers will happily come back to the business, knowing they will be treated nicely and with respect from the business. When a newsagent and customer have a good working relationship, customers can reap from rewards. I know from experience that if a customer may be running low on money, some newsagents, if they have been a customer for a long time, will allow the person to run a tab. This comes from good customer loyalty and a good customer-business friendship.
The next stakeholders I will be evaluating are the employees of the business. Employees are internal