Question

Joseph is the sole owner of a local company named fruity cups that is based in Virginia Beach Virginia. Select one internal stakeholder from the fact pattern. If Joseph decides to sell fruity cups what would be the potential impact on this internal stakeholder?

Answer 1

Employees are the most affected internal stakeholder of a business at the time of its sale. Hence it will be more suitable to select employees.

In this case the sole owner Joseph is selling the business named Fruity Cups. When a new owner comes to a business firm with different aim, targets and objectives the employees may ordinarily have a reluctant attitude that it may affect their personal and group interests. New owner may try to increase or decrease the scale of operation, if a decrease in the scale of operation it will lead to a situation where some employees may loose their job. There may be a fear of job security, which will lead to increase anxiety in employees. The new leadership in the business may create a negative attitude among employees. The new policies and practices of the management may result in dissatisfaction in some employees. They may become demotivated and reduce their effort in work if they feel uncomfortable with the new pay scales. Moreover, sometimes employees may have an emotional feeling to the existing owner which may result in a major impact in employees attitude at the time of change in ownership.