This is an in-depth essay about the stakeholders relating to my chosen contrasting company, 'Sony' and 'the BHF. this assignment can be used as a framework to assist with your work as it has met the distinction criterion.
In this essay I will discuss the six diverse types of internal and external stakeholders within
my desired businesses (Sony and The British Heart Foundation), how big their
interest/influence are and its effects on the private and public organisations that I have
chosen.
What is a stakeholder and what do they do?
Stakeholders are individuals or groups that have an interest in an organisation’s activity.
This can affect the business in terms of popularity and status. Stakeholders may include the
government, competitors/rival companies, employees, investors, customers, or suppliers.
These parties are grouped into external/internal factions and can also be affected by the
business’ operations and functions. Shareholders are a type of stakeholder that firms should
be aware of.
Internal stakeholders such as owners, employees and investors are all part of their
organisation. They express their interest and actions directly towards the organisation
(hence being primary stakeholders) and are also directly affected by the organisation itself.
In a scenario for an investor; if a firm wants to invest £2.5million in a clothes shop for 5%
equity, it will become an internal stakeholder due to the direct relationship and shareholding
between the investor and organisation.
Employees are the backbone of their organisation as they carry out specialised roles
entrusted to themselves to improve and enhance the business. This directly affects them
due to potential enhancements of the business which could lead them to higher raises in
salary.
Owners/Shareholders are responsible for the company's decision-making and own parts of
their business. Some shareholders have full ownership.
External stakeholders are people or groups who are not associated with the business but are
indirectly affected by the projects and functions done by the organisation. They may often be
interested in the company’s wellbeing, how the company may affect themselves and their
surroundings or the company’s potential downfall. Factions may include; suppliers,
government, and competitors. Suppliers expect to trade supply with the business in return
for payment of money.
They indirectly affect and are indirectly affected themselves because net worth of the
supplier and company may increase or decrease. The government state laws and demand
tax. This benefits the government rather than the company showing how it indirectly has
positive and negative impacts for both the company and the government themselves.
Sony (plc)
Sony is a multinational company renowned across borders for its various tech gadgets and
movie/sound production. They are positively and negatively affected by numeral
stakeholders, similarly like any other business. For my private organisation section (Sony) I
will portray six key stakeholders that impact Sony through their operations, elaborate on the
interest and influence they have and whether Sony values them.
, Sony’s Investors/shareholders
These are gigantic stakeholders for not only Sony but several other companies too, varying
from micro businesses to gigantic businesses. In this case, Sony as a vast and large public
limited company will attract a lot of investors to buy shares of Sony due to immense reliability
of Sony Succeeding and triumphing through entertainment production / tech manufacturing
so the investors will earn their percentage of equity through Sony's profit. As shareholders
and investors, they contribute to Sony’s finance by investing and anticipating finance in
bigger value that they hoped for. As a result, this influence gets recognition and awareness
In Sony’s financial strategies and hence is used to manage money decisions (how to/how
much should be spent on shareholders, how to progress as a company through smart,
decisive money invests, etc.)
Investors may propose collaboration opportunities as well as support. Partnerships as such,
may comprise joint ventures for manufacturing projects for Sony which could lead to long
term progress and hence, success.
Overall, Shareholders play a pivotal and dominant role with high influence/interest and are
key players. They hold a big abundance of power due to rights of negotiations and
recommendations for the company in staff meetings and sometimes the ability to make their
own independent decisions without discussions with other significant staff. However, this
depends on the amount of influence the owner has or if they have 100% ownership. In
Sony’s case, shareholders have rights to vote but independent decision making may not be
accepted due to shared ownership of Sony (parent organisation). Reasons for this may be
due to un-inheritance of Sony’s business from Akio Morita and his co-founder Masaru Ibuka.
Additionally, shareholders possess a high magnitude of interest for a company in terms of
finance and innovation. In Sony’s case they are primarily intrigued with Sony’s income and
finance. They invest in hope of more valuable return which can improve the company’s
expansion and such. This is evident to reasons why Sony attract various investors.
One drawback to being a shareholder or owner in Sony could be the sheer stress of
responsibility, if they fail to execute their specialised work decisively, it may put the company
into risk of bankruptcy. Shareholders are internal stakeholders of the Sony business as they
directly dictate changes as well as being affected by it.
Customers of Sony
Customers are the foundation of Sony’s revenue and income through influence (of
somewhat) on Sony’s commodities that should be catered to fans as well as customer
specific electronics which have been in consideration of manufacturing. This allows Sony to
strategically choose which electronics should be announced/released and when, so then
demand for it will increase and so will customer revenue. However, supply may not meet
demand, and fans may be distressed when missing out which goes to show the bare power
fans hold within Sony. This occurred when the PS5 was released and Demand for it
ascended to its peak for Sony entertainment due to many consumers and fans purchasing
the new console in boredom for the PS4 and as well as to keep in trend.
Overall, Customers have high interest and low influence on Sony. Elaborating on ‘interest’
customers have a massive amount of attention in products due to various factors, one of
which being hype generated from media. This is when fans predict launches of new products
and start rapidly announcing features and release dates of the ‘new product’ on media
platforms because of eagerness and ecstasy resonating within the Sony fanbase. This
benefits Sony hugely due to already rapid gossip of their product (which will increase sales)
and more knowledge about the company itself.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller fesel. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £5.76. You're not tied to anything after your purchase.
