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MPO THEORY

Some theory you learned as part of MPO that could be helpful in your exam

QuestionAnswer
Stakeholder - Employees - why are they interested in how the business they work for is performing? They are interested in new developments in the company - new strategies - and expansion plans - as they will be interested in how this will affect their jobs, whether their jobs will remain secure, and their chances of promotion.
Stakeholder - Shareholders - Why will shareholders have an interest in how well the company is performing? They will want to know whether the company's profits are likely to improve in the future, because they will be interested in the amount of profits the company will distribute to shareholders in the form of dividends.
Stakeholder - Government - Why will governments have an interest in how well the company is performing? They will be interested in the amount of profits a company is making, as the company will pay the government tax on profits. They will also be interested in economic activity of a company, eg the company's exports to other countries.
Stakeholder - Consumers - Why would consumers be interested in what a company does? They would have an interest in the products and service a company gives, for example in the quality and value of products.
Stakeholder - Banks - Why would banks have an interest in how well a company is performing? They would be interested in whether they will be likely to be paid back interest on any loans they have given the company.
Stakeholder - Other Partner Companies - Why would other Partner Companies have an interest in how well a company is performing? They will be hoping the company is successful as they would want to gain sales or other benefits through their agreements such as sharing of techology; supply chains etc.
Stakeholder - Competitors - Why would competitors be interested what a competitor company does? They would be interested in their market share and if a competing company was taking some of their customers from them.
Created by: elainey