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BENEFITS AND COSTS OF BUSINESS GRWOTH TO STAKEHOLDERS - Coggle Diagram
BENEFITS AND COSTS OF BUSINESS GRWOTH TO STAKEHOLDERS
Shareholders
Benefits
Increased level in dividends due to a potential increase in profits
Money invested into the business may be used more efficiently
Costs
Decreased level in dividends as a result of the new company needing to pay off money needed for merger - lower short-term profit
Diseconomies of scale
Money invested may be used less efficiently
Decrease in share value - less control
Employees
Benefits
More motivated to work
Potential increase in wages
Thoughts are considered
Costs
Less motivated workers - higher labour turnover
Less fringe benefits
Thoughts and needs are not considered
More capital intensive production - higher redundancies
Customers
Benefits
Better customer service as a result of more motivated staff
Costs
Poorer quality of goods as a result of cost cutting
Suppliers
Benefits
Higher levels of orders
Time (possible less negotiation needed)
Costs
Loss of business due to the company using a cheaper or one of their own suppliers
New firm may be less reliable to pay for their goods
Government
Benefit
Higher corporation tax
Costs
Higher pay on job seekers allowance
Potential increase in crime
Economy
Benefits
Lower unemployment
Costs
Higher unemployment
Negative externalities