All stakeholders, with their being a various range of them with different degrees of control over the organisation, will disagree with each other from time to time as they will have varies opinions and their view may affect the events happening within the organisations.
Disagreements between stakeholders
As there are so many different stakeholders in a business all demanding different things, there is no surprise that there are often disagreements and conflicts between the different groups. There are conflicts in some departments more than others.
Shareholders and management
Sometimes the aim to maximise a business’s profit over rides the objective of shareholders, which will result in large dividend payments for them. It is far more likely that the managers will aim to profit satisfy rather than profit maximise. They will aim to earn satisfactory levels of profits, and then use the remaining resources to pursue other objectives such as diversification and growth. The conflict between these two stakeholders (the shareholders and the management) is referred to as divorce of ownership because the ownership and the control are in conflict.
Customers and the business
The chances of customers remaining loyal and repeating purchase from the business if the product that they purchase is of poor quality and/ or poor value of money is unlikely. Customers are prepared to complain about the quality of products and after-sales service more than ever before. Businesses have a number of strategies in place designed to satisfy the disgruntled customer, reimburse any financial loss that they may have incurred and persuade them to remain loyal to the business.
Suppliers and the business
There are often quoted complains from suppliers about the lack of prompt payment from businesses for deliveries of raw materials, and if this became a regular problem then the suppliers may well refuse credit to the business or may even cease all dealing with them. On the other hand, some business have been known to complain about late deliveries and components from supplier, and the dubious quality of the parts once they have been inspected.
The community and the business
The local community can suffer at the hands of a large company though the negative externalities of pollution, noise, congestion and the building of new factories in areas of outstanding beauty. But the business faces stronger protests from residents and from pressure groups concerned about its actions, then they may decide to relocate there business to another area, causing much unemployment and a fall in investment in the community it leaves behind.
In both John Smedley and Highfields school will have conflicts between their stakeholders for many different reasons. John Smedley
Shareholder and manager
The shareholder of John Smedley would be the family and there may be conflicts between the family and the management that occur sometimes.
The shareholders and the managers are the top two roles in a business and may disagree. The managers may have an idea for the business but the shareholders may not like the idea that they have and might put it down and this may cause some conflict and negativity between the two groups of people especial if the shareholders think over the idea editing the faults claim it to be theirs.
Customers and the business
The customers are the main income of a business, there may be conflicts between the business and their customers.
The customers may be unhappy with something they have been sold so want to return it and if the person serving them isn't nice and friendly they may have a negative opinion on the business due to the faulty garment and the customer service.
Suppliers and the business
They will have a range of suppliers that will supply the business with a range of different raw materials.
There may be conflict between the suppliers and John Smedley. The suppliers will expect John Smedley to pay them on time, if they don’t pay them on time a conflict will arise due to the fact that John Smedley aren’t going by their contract. Suppliers may decide that they won't supply unless they are paid as the suppliers will get into trouble financially if the business the supply to don't pay with in the 30 days they are meant to meaning that they may not have to stock to supply businesses which may cause them to lose their customers. Smedleys will need supplies that they can use to make their garments, thins will include things like buttons, the range of cottons at which they use and other materials.
The community and the business
The community will be affected by the business in both positive and negative factors. The business will have to consider the communities when they are making decision as to not cause offence and keep the community happy with them.
At Lea mills there is the John Smedleys factory where their garments are made and stored there will be big vans and lorries when the expecting deliveries off of suppliers or when they are sending garments to other shops around the world. The community may not be too happy about all the traffic but where the lorries are unloaded and loaded is around the back of the factory away from the may road so that they won't be noticed as much. As John Smedley are an international business they will have to send garments to other countries to be sold this will cause pollution as will all the vans and lorries.
But like all business they are trying to find way at which they can be more eco-friendly due to the recent this has become a big thing. John Smedley has become aware of this and has created a list of things that they now do and will do to become more eco-friendly as to keep the community happy as they won't be hurting the environment. They are looking sustainable design which is the creative desigteam that have control over the product specification, they can incorporate sustainable criteria into the concept development and design stages. Energy management this is where all production and retail sites under the control of John Smedley, there has been an introduction of energy efficiencies and energy saving technologies and they are still on going. The biggest wins for the company are likely to be from Lea Mils it's self becausebecause there high energy used is limited by an aging infrastructure and steam boiler powering the site. They are also looking at their building and trying to make them more energy efficient, to manage hazardous substances and waste.
Now John Smedley have looked at ways they can save energy and keep their high quality. They could consider less packaging as they use quite a few plastic bags maybe they could consider reusing backs or getting one that are made of recycled material.
The community could also be funny with them if they don't try to employ some of the local people that live near the factory as they factory originally did just employ locals that live in the surrounding villagers. The local people may think that this should still apply a little bit so if they suddenly start to hire people from far away the locals may not be happy with the business for doing this. Highfields School
Shareholder and manager
The shareholder of Highfields would be the Government and there may be conflicts between the family and the management that occur sometimes.
The shareholders in Highfields would be the Government and there may be conflicts between the government and the manager that happen sometimes. The managers well head teacher has to manage the money that is given to the school by the government; it may cause conflict if the head wants more money than what he is given. Or when he uses it all and needs more but there isn’t any more available to them.
Customers and the business
The customers (which in this case will be the students and their families) are the main interest of Highfields School as the government fund schools; there may be conflicts between the business and their customers.
The customers at Highfields won’t be proper customers because they aren’t actually buying anything they are receiving a service which is paid for through their parent’s taxes. The customers at Highfields School will be the students that go there to learn or may be the parents of them pupils as they are expecting good quality education from the school for their children. There may be conflicted between the students or their parents and the teachers at the school. In a school the conflict can sometimes be just a teacher telling off a pupil for being disruptive or not doing homework, this is a small form of conflict that happens most days. It grows when parents have to be brought in to talk to teachers about their son/ daughter’s behaviour or other things.
From the younger years 7-11 mobile phones are taken off the pupils if they are seen using them during school time, this could cause conflicted because the students aren’t happy with the teacher for taking it off them and the pupils parents wont be too happy either as they have to go into school to collect the confiscated phone.
Suppliers and the business
They will have a range of suppliers that will supply the business with a range of different raw materials. There may be conflict between the suppliers and Highfields.
The suppliers to Highfields will be a different type of supplier compared to the suppliers that supply John Smedleys but they will still have suppliers that supply goods. The suppliers may complain if the school doesn’t pay for the materials on time because the suppliers need that money to buy in more stock and they might become behind on their deliveries because they can’t afford to buy the stock due to late payments. The supplier may decide that they won't supply again until they paid for the materials that they have supplied this will cause an effect on the school as well as suppliers. The sort of things that are supplied to schools would be stationary, technology, substitute teachers to cover lessons when teachers are off and other things like food for the canteen.
The community and the business
The community will be affected by the business in both positive and negative factors.
The community will be affected by the business in both positive and negative factors. The community will be affected by the school because there are loads of students which equals traffic such as cars and buses which drop of the students at the school. There may also be disruption at the end of school because some people will walk home or into town which may create noise that the neighbours to the school don’t want. At breaks and lunchtimes there will also be the noise factor as people are outside playing football, running around or just sitting on the field with all the talking and shouting of all the pupils at the school it could get quite loud. The school have signs up at the entrances to the building reminding students to leave the site quietly after events after school just so that they don’t annoy the schools neighbours. They try as a school to keep the area in which students learn by trying to make sure that any litter isn’t just dropped outside but is put in a bin.