5.10 effect of change on stakeholders

positive effects on owners/shareholders

employees have greater respect for owners if change is successful, improved financial performance is likely to result in an increased or steady return on the investment of owners or shareholders

negative effects on owners/shareholders

may become stressed or overwhelmed by increased workload and responsibility, a change may result in an owner losing their business or shareholders losing the value of their shares

positive effects on managers

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

negative effects on managers

increased workload and a change in management style can increase stress, managers may lose their job in a restructure of downsize

positive effects on employees

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

negative effects on employees

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

positive effects on customers

improved quality increases customer satisfaction, offering lower prices can increase satisfaction, customers may be pleased with the decision to discontinue or change a good or service

negative effects on customers

customers may not like a business’s decision, increase in price can reduce customer satisfaction, decrease in product quality if the change involves cheaper inputs reducing satisfaction

positive effects on suppliers

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

negative effects on suppliers

change may result in the need of less resources reducing sales for suppliers, if a business switches suppliers then the original supplier may experience a fall in sales

positive effects on general community

change may result in job creation which improves employment and wellbeing, a change to renewable resources reduces waste and pollution, expanding into new locations increases customer traffic and sales

negative effects on general community

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