Johnnie Walker in Kilmarnock - Diageo and Stakeholders

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 Identify
 Interest
 Influence
 Conflict of Stakeholders

DEFINE STAKEHOLDERS

Stakeholders are a group of individuals with a key interest in a business or organisation.

INTERNAL STAKEHOLDERS

 Owners/Shareholders
 Johnnie Walker Managers in Kilmarnock
 Johnnie Walker Employees in Kilmarnock

EXTERNAL STAKEHOLDERS

 Kilmarnock Residents
 East Ayrshire Council
 SNP - The Scottish Government
 The UK Government
 Banks
 Johnnie Walker Customers


POTENTIAL EXAM QUESTIONS

Describe how 5 different stakeholders of Diageo could influence the
organisation.

Stakeholders are groups of people with a key interest in an organisation.

At Diageo's Johnnie Walker plant in Kilmarnock internal stakeholders would be:

 Managers
 Employees
 Shareholders/Owners

Managers can influence the organisation by making important decisions on the running of the firm for example what products to manufacture.

Employees can affect the quality of a product or service by how hard they work to produce the finished article.

Shareholder/Owners can change many things in the firm, for example they can buy more shares or vote at the AGM to replace the Board of Directors if results are not to their liking.

External Stakeholders would be:

 Customers
 Local Community
 Government
 Banks
 Suppliers

Customers can influence Diageo by deciding whether or not to purchase the product or service.

Local Community - in this case the Kilmarnock residents may decide to petition the organisation to make a change to their policies (eg their environmental policies), or in this specific case to keep jobs in Kilmarnock.

Government (in this example it could be Scottish Government, the UK Government or even East Ayrshire Council) can change or alter legislation which can affect production of a product or the working conditions of the employees (health & safety laws for example).

Banks can influence a firm by approving a much needed loan to keep a firm afloat in times of recession

Suppliers to Diageo can affect the firm quite drastically. They can alter the price of raw materials which in turn will affect Diageo's profit margin.