Key stakeholders-FedEx/Christian Aid

Unit 1- The Business Environment
P2- Describe the different stakeholders who influence the purpose of two contrasting businesses

Key stake holder’s introduction

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A stakeholder is any person who has an interest in a business. A stakeholder usually is an individual, a group or an organization. These people usually have an interest in a business because they are an owner, manager, worker or customer. These people have interest in the business because for most of them their profit or salary is in the business, however a customer may have interest in a business because they want the business to continue to produce products.

Key stake holders- FedEx

FedEx, being a large business has some primary stakeholders, these are the people who have the most interest and who are key people to the businesses development. The key stakeholders in FedEx include their board of directors/ owners, their management, their investors and the government. The FedEx board of directors/ owners are key stake holders because they have the overwhelming control of the company. This makes them key stake holders because they have the largest commitment and the highest investment in the business, whether it is their money or their time. What the board of directors/ owners have invested into the company makes them key stake holders because they have taken risks in setting up their business, the risks that they have taken include the money that they have invested that could be lost if the business was to become bankrupt, this could leave a business owner with nothing, meaning they are a key stakeholder because their life is effectively invested into the business.

The influence that these stakeholders have on the business is that they are in control of how the business is run, this means that although they are key stakeholders and they are at risk in running the business themselves, they dictate the effect on other stake holders, for example if the board of directors or the owner decided to stop selling one of their products this would influence the other stakeholders in the fact that the customers can no longer buy a product they may have needed, suppliers are losing business, employees may begin earning a lower salary if the business goes downhill and also some stakeholders may lose their job as they are influenced by the actions of the owners and board of directors. Read about FedEx Stakeholders

Investors are also some key stakeholders within FedEx. The investors in FedEx are key stakeholders because they have invested their money in the business. The fact that an investor has some of their own money tied up in the company, this means that they have something to lose if the business was to become bust, this means that they have an interest in the business and means that they are key stakeholders as their money also dictates how the business is run. The investors influence this business because without the money that they provide the business may not be able to run properly. Shareholders, who are investors influence the way that the business is run because they trade the stocks between them and in turn help the business to grow. This allows the business to become more successful by making more money.

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