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Unit 1 - P2 + M1

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describe the different stakeholders who influence the purpose of two contrasting businesses [CT] and explain the points of view of different stakeholders seeking to influence the aims and objectives of two contrasting organisations

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  • February 8, 2021
  • February 8, 2021
  • 7
  • 2019/2020
  • Essay
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Stakeholders play a crucial role in running a business. Stakeholders are a person, group
or organisation that is interested in an organisation. Stakeholders can affect or be affected
by the organisations actions, objectives and policies. There are stakeholders that have the
power or have the position to influence an organisation or the operational activities.


There are two types of stakeholders that are interested in an organisation. Internal stake-
holders are those who are entities within a business eg. employees, managers, a board of
directors or investors. External stakeholders are those that exist outside of the business
and do not have a direct impact on the business in the way that employers and owners do.
External stakeholders are for example consumers, investors, suppliers and governments.


Under the United Arab Emirates law anyone wanting to join, start or participate in Trade
Unions and employers associations are considered illegal activities and are punishable un-
der UAE law. While there are no employers associations, workers are allowed to submit
written complaints, associating job discrimination or other unfair behaviour or work con-
duct.

, Uber and Emirates are two organisations with two unique stakeholder interests.


Uber has over three million drivers and 12,000 office based employees. Uber has a very
important role in ensuring, customers enjoy the safe, reliable, affordable and convenient
rides that they desire. The drivers at Uber also have a healthy reputation to maintain. Cus-
tomers who experience a bad ride, or experience might not want to use Uber again, and
convert to a competitor. This overall, reduced the amount of money produced. Uber cur-
rently only has 3,000 drivers working in the United Arab Emirates. Drivers in the UAE are
employed differently compared to the rest of the world. Uber drivers are employed by li-
censed limousine companies who already own fleets and employ drivers. In return, the
companies, and drivers, gain access to Uber’s unique booking platform. A contributing fac-
tor to income loss is often seen where Uber has less customers in a particular area
thereby reducing the amount of money a driver makes, as earnings are distributed to Uber,
the limo company and then drivers.


Uber's customers are a very important external stakeholder, as they are what keeps the
business running. Uber being a public service provider, has customers that expect that
Uber provide a safe, reliable, affordable and fast means of transport at different luxury lev-
els. Uber currently accumulates around 40 million riders a month and continues to strive to
accumulate more riders for a cheaper price. Recently other transportation services are be-
coming more popular causing stiff competition. Meaning the pull to attract customers is af-
fected, due to other competitors offering cheaper fares, having more promotional offers or
are more available to a unique location. Uber aims to maximise and improve on their af-
fordable rates. If rates, quality and speed, do not matching with competitors, for example
Careem and Dubai Taxis, customers could possibly transfer, reducing revenue for the
company.


The government is also an important stakeholder in Uber. Being in the United Arab Emi-
rates, where there is no tax, using a car service that is not using the governments owned
transportational service of RTA, would reduce the amount of revenue being made which
would go to the government. The government would be more opposed to Uber, since its
competing against their own taxi service. The government holds a lot of influence and
power on Uber through legislation, tightening laws and implementing new legislations that
can heavily impact the company, their business activities and methods.

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