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CHAPTER 1: BUSINESS ORGANIZATION AND ITS STAKEHOLDER, Nguyễn Ngọc Anh -…
CHAPTER 1: BUSINESS ORGANIZATION AND ITS STAKEHOLDER
STAKEHOLDERS
DEFINITION AND RATIONALE
Stakeholder theory
Any individual or group that can affect or be affected by the achievement of an organization's objectives
Rationale
MPs
Media
Contractors and suppliers
Local authorities
Investors
Community groups
Employees
Environmental partners
Customers
Regulators
Types
Internal
Employees
Management
External
Community
Government
Pressure group
Connected
Shareholders
Customers
Supplier
Financiers
GOALS AND OBJECTIVES
Connected stakeholder
Shareholder
Increase in shareholder wealth
Banker
Security of loan
Suppliers
Profitable sales. Payment for goods
Customers
Goods as promised
External stakeholder
Pressure group
Pollution, rights
Professional bodies
Member's ethic
Government
Job, training, tax
Internal stakeholder
Jobs, careers
Money, benefits
Promotions
Satisfaction
STAKEHOLDERS MAPPING
A: minimal effort needed
B: should be kept informed
D: key players
C: should be kept satisfied
ORGANISATION
DEFINITION OF ORGANISATION
1. SOCIAL ARRANGEMENT
Comprise of two or more person working together for a common purpose
2. COLLECTIVE GOALS
Different purpose and mission set out different goals and objectives
3. CONTROL ITS OWN PERFORMANCE
Monitor, control their performance and take corrective action
4. BOUNDARY
Physical boundary
Social boundary
5. ENVIRONMENT
The environment and the organization affect each other
PESTEL model
RATIONALE OF ORGANISATION
Being able to achieve results which individuals can't achieve by themselves
CHARACTERISTIC OF BUSINESS ORGANISATION
Profit orientation or not
Legal status - limited company/partnership
Activities
Size - small or multinational
Control - owners, workers or government
Sources of finance
Ownership - public or private sector
Technology usage
Nguyễn Ngọc Anh - Anh 1 ACCA
