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'The relationship between an enterprise and its stakeholders may be competitive or co-operative.' Discuss this statement, with appropriate examples. - Leaving Cert Business - Question A - 2008
Question A
'The relationship between an enterprise and its stakeholders may be competitive or co-operative.' Discuss this statement, with appropriate examples.
Worked Solution & Example Answer:'The relationship between an enterprise and its stakeholders may be competitive or co-operative.' Discuss this statement, with appropriate examples. - Leaving Cert Business - Question A - 2008
Step 1
Competitive relationship: Discuss with examples
Answer
A competitive relationship occurs when an enterprise and its stakeholders pursue differing objectives, often at the expense of one another. This can manifest both internally and externally.
Example 1: Internal Competition - Within an organization, employees might compete for promotions or bonuses. For instance, salespeople could find themselves vying against each other to achieve the highest sales numbers, leading to a competitive atmosphere that might incentivize performance but can also foster conflict.
Example 2: External Competition - Externally, businesses may face competition for customers. Consider two restaurants in the same area; they directly compete for the same clientele, which can lead to price wars or promotional gimmicks aimed at attracting customers away from each other.
Step 2
Co-operative relationship: Discuss with examples
Answer
In contrast, a co-operative relationship implies that the enterprise and its stakeholders work together towards shared goals, benefiting all parties involved. This often requires collaboration and mutual support.
Example 1: Teamwork within the enterprise - Employees from different departments may collaborate on a project, sharing their skills to meet a common objective, such as launching a new product. Here, teamwork can enhance productivity and creativity.
Example 2: Partnership with stakeholders - An enterprise might establish partnerships with suppliers to ensure a stable supply chain. For instance, a farm working with local grocery stores to coordinate supply can result in mutually beneficial arrangements, ensuring that both the farm sells its produce and the grocery stores can offer fresh local products.