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The Purpose and Function of Business - PowerPoint Presentation Example

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In the boxes below explain in about 200 words what are, how they can be categorised and the ways in which international businesses deal with each type. Select an international business, and list three different internal and external stakeholders. Comment on the…
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The Purpose and Function of Business
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Download file to see previous pages Categorically stakeholders can be classified into internal, external, primary and secondary. Internal stakeholders are members of the organisation like owners, management and employees contrary to that the outside organisations and individuals constitute external stakeholders. Primary stakeholders are highly critical as they have a direct impact on the business owing to their authority, power and resources. Secondary stakeholders are not involved in core business activities and indirectly affect the business outcomes.
1. Investors: Investors are highly crucial to kick starting a business. Being a clothing brand HnM’s investors offer the financial support needed to create quality products, promote them affectively as well as exhibit them in an efficient manner with easy access to the target market.
1. Suppliers: HnM’s suppliers follow the code of conduct as well as prevailing laws to provide high quality raw materials to HnM’s factories where the workers work diligently to produce high standard and fashionable garments for kids and adults alike.
Stakeholder and organisation’s relationship is mutually beneficial. Stakeholders put their resources at a risk for the organisation’s success hence they have high stakes in the business activities. The type of stake depends upon the nature of business activity where the risk has been invested. The stake is not always financial in fact recognition of contribution or a share in the ownership also attribute stakeholder gains.
Both primary and secondary stakeholders are important however the intensity of their impact varies. The existence of a business depends mainly on the activities and opinions of the former. Owing to the reciprocity of this relationship businesses today are paying high attention to maximising their positive impact on stakeholders and lowering the negative ...Download file to see next pagesRead More
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