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Illustrate the impact of trade disputes on any three stakeholders in a business. - Leaving Cert Business - Question 1(B) - 2018
Question 1(B)
Illustrate the impact of trade disputes on any three stakeholders in a business.
Worked Solution & Example Answer:Illustrate the impact of trade disputes on any three stakeholders in a business. - Leaving Cert Business - Question 1(B) - 2018
Step 1
Impact on Employees
Answer
During a trade dispute, employees may not perform their duties fully, leading to conflicts between them and management. If a strike occurs, employees will not receive wages during this period, which could result in financial hardship. Prolonged disputes can affect employee morale, making them feel unmotivated and unproductive.
Step 2
Impact on Customers/Consumers
Answer
Trade disputes can cause disruptions that prevent consumers from accessing products or services. If employees are on strike, business operations may halt, and customers could be unable to purchase essential goods. This could lead them to seek alternatives from competitors, resulting in loss of customer loyalty.
Step 3
Impact on Investors
Answer
Trade disputes can negatively influence investor perceptions. If stock prices decline due to prolonged disputes, investors may see a drop in the value of their shares. Additionally, reduced profits during disputes can mean smaller or no dividends, leading investors to rethink their investments in the business.