Sample Business Case Studies Paper on Reed Elsevier

Business Case Study- Reed Elsevier

  1. A diagram illustrating the main internal and external stakeholders at Reed Elsevier.
  •            A shareholder is an entity that holds stocks within a corporation and is entitled to elect directors. Furthermore, a stockholder is allowed to acquire extra issues and collect dividends from the corporation. A shareholder also shares in the residual cash of the corporation once it is sold or even dissolved. Shareholders can either hold ordinary shares or preferential shares, the latter having additional rights and being prioritized in the allocation of dividends.

A stakeholder, on the other hand, represents a substantially broader group because they include anyone from within or without the corporation who have an interest in the success or failure of the business. Shareholders are included within this category because their primary interest is the profitability of the enterprise and an appreciation of the value of their shares. Other stakeholders might include the government, clienteles, creditors, and workers. Therefore, shareholders are part of the stakeholders that consists of a larger group of interested parties looking out for their interests in the corporation.

  •           There is a potential for stakeholder conflict due to diverse goals and objectives that each has. Shareholders anticipate that the commerce will earn a profit. Employees require a conducive environment for them to be retained while investors might consider how the corporation responds to environmental issues before investing their money.

Stakeholder conflict, therefore, arises when the needs of one part conflicts with that of another within the same corporation. For instance, if the corporation purchases products from a cheaper supplier at the expense of ethical practices by that vendor. Another example of conflict might be the investment in green energy, which is expensive but has a tremendous benefit to the environment. Shareholders might not like this, but the community will benefit from such an initiative.

It is important for Reed Elsevier to engage in consultation with all stakeholders in a bid to communicate with them on the need for supporting an initiative for their longer-term values. The corporation has to make stakeholders aware of trade-offs for instance employees being offered development opportunities for them to attain their potential. Such an initiative needs to be justified by comparing it to the opportunity cost of foregoing it. Such a mechanism of conveying information and justification can help reduce instances of stakeholder conflict.

  •             Businesses need to focus on the needs of all stakeholders since they do not work in isolation but rather affect the lives of individuals in the global community. Corporations need to concentrate on giving back to the community by engaging in activities that stimulate growth within that vicinity. The community would develop more through this and engage actively in purchasing the products of the company thus profitability.

Valuing people should be a focus that is significant to businesses since it is through such an initiative that the company recognizes and values its people. The benefits the corporation stands to gain from this include increased motivation and loyalty from employees. When corporations support their employees, the result is that employees feel more motivated and involved and can improve the efficiency thus more production and sales. 

Corporations need to focus on what customers want thereby producing quality products and services that guarantee value for money. By listening to customers and meeting their objectives, businesses can ensure that they fulfill their needs with innovative ideas that reduce their costs of production. Businesses need to do what is relevant to the corporation and stakeholders in order to create a sustainable business model that leads to growth.