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Stakeholders of a Corporation's Market and Non-Market Environments

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  • 0:01 Stakeholders
  • 0:38 Market Stakeholders
  • 3:35 Non-Market Stakeholders
  • 5:32 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
Corporations depend upon the support of their stakeholders for success in the marketplace. In this lesson, you will learn about both the market and non-market environment of stakeholder groups.

Stakeholders

It is very difficult to make everyone happy in your life. Your parents, significant others, friends, and teachers all demand attention in order to remain satisfied. Companies face the same challenge when dealing with their stakeholders, which are any person or group associated with the organization that has a stake in the organization's output. In this lesson, you will learn about the stakeholders of a corporation's market and non-market environments. A Big Thrill is the owner of numerous amusement parks nationwide. Let's use this company as a case example to identify market and non-market stakeholders.

Market Stakeholders

A Big Thrill's market stakeholders contain employees, suppliers, customers, owners, and competitors. These groups are the primary stakeholders to A Big Thrill, as without their support, the company would immediately be in financial ruin. Each group offers essential parts of business help that A Big Thrill depends upon to succeed.

Owners/stockholders share in the profitability and loss of A Big Thrill. These stakeholders can influence the company's direction, business choices, and strategies through their votes and social influence. For example, the stockholders petitioned the board of directors to express their disapproval of a new park idea called 'Vampire World.' The stockholders felt it was a fad that did not have long-lasting profitability.

Employees are vital to A Big Thrill's corporate success. The company depends upon their employee support for daily park work and in regards to developing long-lasting trusting relationships. Many of A Big Thrill's employees also own stock as part of their retirement plans. Employees have a vested interest in the success of the company. Every employee donates their time to the community to help A Big Thrill's corporate image and customer reach.

Customers are a central focus of A Big Thrill's inventive theme park rides. The company values customer loyalty and looks to satisfy their needs. Consumer trends have been moving towards bigger and more extreme coasters. A Big Thrill values customer feedback and has integrated a new coaster called 'The End of The Road,' a ride which launches people so far and fast that they need goggles to protect their vision.

Suppliers provide A Big Thrill with the needed equipment, concessions, and parts to help satisfy customers. A Big Thrill has a network of suppliers that provide innovative rides, unique park food (deep-fried Twinkies), and cool technological games. Creditors, or financial institutions that loan businesses money, are also valuable suppliers of monetary support. A Big Thrill depends upon their relationship with Bank of USA for investment money to finance new parks.

Competitors are also considered part of market stakeholders as their actions can have a dramatic impact on A Big Thrill. Last month, A Big Thrill's biggest competitor dropped prices by 50% for one month, and the result was a huge decline in profits as ride enthusiasts visited the other, cheaper park. In some instances, competitors can support each other and the industry. A Big Thrill's other competitor partnered together with them on lobbying the government to not pass regulation to increase frequency of ride inspections.

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