Question

Explain the concepts of stake and stakeholder from your perspective as an individual. What kinds of stakes and stakeholders do you have? Discuss. Explain in your own words the differences between the production, managerial, and stakeholder views of the firm. Which view is best and why?

Answer 1

Stakes put up the relationships in the stakeholders and organization and between these the stakes exist. Stakeholder invest their capital by taking a risk. Stake is the part of the interest in which the stakeholder get their shares by keeping the risk in mind. So, stake is kind of a reward which is received by the stakeholder for the kind of risk is taken.

Like employees are the stakeholder of the firm. Now in this case human capital is the investment and counted as human capital also knowledge is also coming in capital and they get career as stake. Also Stake means that the bond between the parties happened due to some kind of risk that is taken by stakeholder for a particular organization or any sort of activity happens in the firm.

Stakeholders are the party which deals individually which puts an affect with all the activities, company policies and practices of trade followed by the organization. Some stakeholders of the particular firm have been suppliers, current employees, Present government, creditors etc

The three kind of firm are production, managerial and stakeholder types.

Production view are for those people and organizational groups that runs a business model or business operational. Limitations are carried to customers and suppliers only. The production team or the concerned department is almost responsible for design and operational functionalities to produce the products which involves process of zero-defect policy that to within estimated time.

Managerial type consists of people those who actually runs the organization or firm e.g. the top management like company executives. The managerial type view takes the responsibility of the business operational functions and this controls all the stakeholder’s relationships and business relationships.

Stakeholders are those people, or group of people and different organizational things which may get benefit or may get suffer from the kind of the different operations of the organization. Stakeholders are those who are interested in the of share market price and value of the shares and also concerned about their retention and work and career path