Stakeholders in Business

Customers are the most important stakeholders in any business. They are the basic purpose of the business and give very valuable feedback about the actual performance regarding what is expected and what is received by the customer. The Product or Service or both should satisfy the specifications asked, function as required, serve through desired life period. If the performance in Delivery of Goods or Services, Quality and the cost of goods is better than that expected by the customer, then the relationship continues. Customer retention is the ultimate test of the business performance. But if there is dissatisfaction in the mind of the customer, the relationship may end soon. So, keeping this stakeholder happy is of immense importance. Customers give opportunities of extending your product range by offering complete sub-assemblies or systems allied with your products or make suggestions to simplify the designs or materials of construction leading to reduction in cost of manufacturing.

These are another good source of information from the market, and they give vital information regarding the improvements that the business can make in the processes and performance of the particular products, the business supplies into the market. They can suggest improvements in design or specifications which may result in reduction in cost and improvements in performance. A regular interaction with vendors should be arranged to get this vital input. Vendors should be treated as partners in the business rather than only suppliers of inputs. They have more information about other members in the market and that exposure is very useful to get alternative inputs.

We realized in the earlier chapter, the importance of people in any organization. These are employees who spend their time, skill and energy working for the organization. They give vital suggestions for improvements that can be made in the various types of methods and processes that the business routinely follows. These suggestions are normally very practical and simple but yielding very useful results. They can offer suggestions to make manufacturing processes simpler, better quality and reduce waste, improve efficiency. Since employees follow the processes set out for them routinely, they have the best knowhow about the difficulties they face and do suggest ways of making the item in a simpler way. This is important to improve quality and productivity. They can advise on how to reduce set up time, reduce rework or rejection, reduce damage, improve tooling, fixtures etc. Frankly they are one of the best sources for improvement suggestions. But it is essential to keep the employees in good spirits for them to give constructive cooperation.

They have a running stake in the business. They can help in improved utilization of financial assets and better profitability. It is essential to keep this group very happy to draw benefits from their superior knowledge of the financial instruments, and the business can save financial costs considerably by taking suggestions from this group.

Their responsibility is the ensure compliance to the prevailing regulations. There is a plethora of regulations controlling the business entities and it is quite a task complying with all those. Guidance can be taken form the consultants in the field. But the officials in the government can give practical suggestions to run the business. Their help can be very beneficial.

They a huge fundamental stake in the wellbeing of the business, its profitability and growth. They are the first well-wishers of the business. They will give the best possible suggestions to become successful. Therefore, they should be consulted informally quite frequently to get the benefit of their expertise.

supports the business from outside. But their satisfaction needs to be ensured to create congenial environment. The business / industry should never cause harm of discomfort to the society. In addition, the business owes obligations to them and these should be sincerely discharged. Keeping them on the right side always is helpful in running the business smoothly without any hassles.