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Illustrate the impact of trade disputes on any three stakeholders in a business. - Leaving Cert Business - Question (B) - 2018
Question (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 (B) - 2018
Step 1
Employees
Answer
Trade disputes often lead to employees not being able to perform their duties effectively, resulting in conflicts between them and management. During strikes or industrial actions, employees may not receive wages, which could strain their financial situation. This prolonged period without compensation can result in decreased motivation and productivity among workers, ultimately affecting overall business operations.
Step 2
Customers/consumers
Answer
When trade disputes arise, they can disrupt normal operations, which may lead to delays in product or service delivery. Consumers could find that they are unable to purchase certain products or services due to official strikes or work-to-rule actions. This disruption may cause customers to lose faith in the brand, potentially leading them to seek alternatives from competing businesses.
Step 3
Investors
Answer
The impact of trade disputes can adversely affect a company's public image and, consequently, its stock price. Investors may see a reduction in the market value of their shares, particularly if prolonged industrial action leads to a significant drop in profits. This could also affect dividend payouts at the end of the financial year, leading investors to sell their shares, further diminishing the company’s market position.