Can you remember??? Horizontal Integration Backward Vertical Integration Forward Vertical Integration Diversification
Coca Cola buys Innocent Smoothies Do you think this is a good or a bad idea? Why?
Stakeholder Conflict
Learning Objectives £ To recall the different INTERNAL and EXTERNAL Stakeholders of a business (E-D) ££ To analyse the impact that a growing business will have on its different stakeholders (C-B) £££ To evaluate how different stakeholders can protect their interests during an uncertain time of business growth (A-A*)
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Whiteboard Time List as many stakeholders as you can Are they internal or external?
Who are the stakeholders in a business?
Manager Owner Employees Shareholders Pressure Groups Banks Customers Government Suppliers Community
Task Time Split into groups of 6 Each group will be given a stakeholders role and information. You have 5 minutes to prepare your viewpoint before reporting back to the rest of the class
Success Criteria You have put forward your viewpoint in the role play You have listened to others in the group and have an understanding of the different viewpoints
Bestco Activity
Task Two Individually you need to produce a summary of the Bestco Meeting What are each of the stakeholder's viewpoints? What could Bestco do to make the different stakeholders happy? Stakeholder Viewpoint Would could Bestco do to keep them happy?
Learning Objectives £ To recall the different INTERNAL and EXTERNAL Stakeholders of a business (E-D) ££ To analyse the impact that a growing business will have on its different stakeholders (C-B) £££ To evaluate how different stakeholders can protect their interests during an uncertain time of business growth (A-A*)
How can Stakeholders PROTECT themselves? Lobby Government Boycott the products Strike Complain Vote or sell shares
A B C D Choice Shops Prices Control Customers may lose out if a competitor is taken over, as they then have reduced . . . Choice A Shops B Prices C Control D
Choice A
A B C D Owners Managers Suppliers Employees If the business joins with another business, this could mean which group has to share control? Owners A Managers B Suppliers C Employees D
Owners A
A B C D Owners Managers Suppliers Employees Which group could benefit from expansion through gaining bigger orders? Owners A Managers B Suppliers C Employees D
Suppliers C
Business expansion may lead to … Economies of scale A Diseconomies of Scale B More control for shareholders C Lower prices D
Economies of Scale A
A takeover may mean that fewer of which group are needed? Owners A Managers B Suppliers C Employees D
Employees D
In a Nutshell What have you learnt?
In a Nutshell Stakeholders have an interest in the business Expansion can bring each stakeholder problems or benefits Stakeholders will support or resist expansion according to how their power is affected Sometimes this means that stakeholder groups will be in conflict