Competitive Relationships Between Stakeholders

Definition

Conflicts can arise when the needs and wants of different stakeholders compete with each other – if one party benefits, the other loses out. This is a win-lose situation. This occurs when both stakeholders are working towards a  mutually exclusive goal. 

Example - Employer & Employee

Employers may want to cut pay to reduce costs, while employees want a pay rise for higher disposable income – if one side wins, the other loses 

Example - Investor & Business Owner

Investors want higher dividends from profits: managers may prefer to reinvest profits into the business – both can't happen fully at the same time 

Example - Supplier & Manager

Suppliers may want faster payment or shorter credit terms, while managers may want to delay payments to manage cash flow – this creates tension 

Example - Producer & Producer

Competing producers may try to increase sales by improving price, quality, or service – if one gains customers, the other may lose them