Critically Examine the Connections Between Stakeholder Claims and the Product Market. Use an Extended Example to Illustrate Your Point.

1119 Words Nov 8th, 2011 5 Pages
Various stakeholders have the right to influence the decisions that the company makes since they directly command respect from these companies. Due to the influence exerted by shareholders, business policies must be formulated to fit the needs of most if not all stakeholders so as to have successful businesses. Stakeholders are all individuals and organizations that are related to the company in one way or another. The term stake is usually taken to mean a portion or share in the business. Examples include shareholders, employees, partners and investors. Stakeholders are further defined as those groups or individuals that affect the day to day running of the business and those that the business affects. It is at this juncture that the …show more content…
Do stakeholder claims have any connection with the product market? If so, do they influence the product market either negatively or positively? These are the questions that will be answered in this paper which seeks to establish the connection between stakeholder claims and the product market.

INDLUENCE OF CONSUMERS ON THE PRODUCT MARKET The product market is very sensitive especially where competition is high and the company has to maintain its customers in order to survive. Consumers for any business include wholesalers, retailers and the end users. These stakeholders have claims in the organization which include good prices, quality products, constant supply and better products in future (IMPROVE). The firms realize that it is not possible to operate without these stakeholders who are referred to as the product market. According to Hildenbrand (1994 pp 323), the major concepts to consider are the four p's in marketing. The firm should therefore ensure the price; place, product and promotion are well measured in order to satisfy the customer. Hildenbrand (1994 pp 98) points out that customers can bring forth success or failure to a business if not taken care of. Their demands which in this case are their claims should never be taken for granted. This group of shareholders is subject to a lot of influence in their buying decisions. Ways in which the product market can be affected is when buyers decide to shift the market of a

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