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Describe potential conflicts between any of the BT stakeholders mentioned in the case study. - Scottish Highers Business Management - Question 8 - 2018

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Question 8

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Describe potential conflicts between any of the BT stakeholders mentioned in the case study.

Worked Solution & Example Answer:Describe potential conflicts between any of the BT stakeholders mentioned in the case study. - Scottish Highers Business Management - Question 8 - 2018

Step 1

Shareholders/Owners and Customer/NHS

96%

114 rated

Answer

Shareholders are focused on receiving high dividends, while customers, particularly those served by the NHS, may want lower prices for services. This can create tension, as shareholders might prioritize profit over customer affordability.

Step 2

Shareholders and Employees

99%

104 rated

Answer

Shareholders are interested in high profits, whereas employees typically seek higher wages and job security. These conflicting interests can lead to dissatisfaction among employees if profit margins restrict wage increases.

Step 3

Shareholders and Government

96%

101 rated

Answer

There may be conflicts between shareholders and the government regarding taxation. Shareholders might seek to minimize tax burdens, whereas the government could impose higher taxes to generate revenue, which could negatively impact shareholder profits.

Step 4

Managers and Chief Executive

98%

120 rated

Answer

Shareholders often expect managers to produce returns that exceed their investment, which may lead to conflicts with the chief executive over operational strategies that take longer to yield profits.

Step 5

Managers and Suppliers

97%

117 rated

Answer

Managers may want to delay payments to suppliers to ensure cash flow, while suppliers seek timely payments to maintain their operations. This can lead to strained relationships between the two parties.

Step 6

Employees and Government

97%

121 rated

Answer

Employees may advocate for increased income tax and social services, whereas the government may focus on tax reduction measures. This disparity can create conflicts in policy preferences and financial interests.

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