5.10 Effect of Change on Stakeholders

Positive effects on Owners/Shareholders (2)

improved business performance can generate ROI, employees have greater respect for owners if change is successful

Negative effects on Owners/Stakeholders (2)

may become stressed or overwhelmed by increased workload and responsibility, may become resented of change involves redundancies affecting corporate culture

Positive effects on Managers (3)

employee centric management style may improve moral, financial motivators may be given based on success of change, opportunity for career advancement due to restructuring

Negative effects on Managers (2)

increased workload can increase stress, if change is unsuccessful managers may loose job security,

Positive effects on Employees (2)

opportunity to learn new skills increasing employability, incentives may be provided to employees who contribute to change

Negative effects on Employees (2)

employees may be left redundant during change, change may result in more responsibility and hours leading to stress

Positive effects on Customers (3)

improved quality increases satisfaction, offering lower prices can increase satisfaction, corporate social responsibility

Negative effects on Customers (3)

may not like businesses decision, decrease in product quality if change involves cheaper inputs, increase in product price

Positive effects on Suppliers (2)

sales may increase if business needs more resources, change in contract may result in supplier adjusting production process creating new opportunities

Negative effects on Suppliers (3)

change may result in less resources reducing sales, switching suppliers affects original supplier, changing production process may be expensive

Positive effects on General Community (3)

change may result in job creation, renewable resources to reduce waste and pollution, expanding into new locations increasing customer traffic and sales

Negative effects on Employees (3)

redundancies may affect wellbeing, unemployment rates and an increase in poverty levels, store closure or relocation may result in less customer traffic, change with non-renewable resources increases pollution