A UK car manufacturer is planning to move its production overseas to reduce the labour costs involved in making its cars.
Evaluate all the possible conflicts that may occur between stakeholders over this issue.
Stakeholders of a UK car manufacturer who is planning to move its production overseas may include the following:
1. Employees: The employees who work in the manufacturing plant may be the most affected stakeholders as they may lose their jobs or have to relocate to foreign countries. They may express their disagreement with the company's decision and may demand that the company reconsider its decision and find alternatives to reduce costs without sacrificing their jobs.
2. Shareholders: Shareholders of the company may support the move as it can increase the company's profit margins, which can lead to higher returns on their investments.
3. Customers: Customers may have concerns about the quality of the cars produced overseas, and may be reluctant to buy them. They may also feel that the company is abandoning its local roots and may prefer to support companies that continue to manufacture locally.
4. Suppliers: The suppliers who provide materials and components for the manufacturing process may also be affected by the decision. They may lose business if the company chooses to source raw materials from the countries where it is moving production to, rather than from local suppliers.
5. Government: The government may have concerns about the impact of job losses on the local economy and may try to persuade the company to stay. They may also consider imposing tariffs or other trade restrictions to discourage companies from moving overseas.
6. Local communities: The decision to move production overseas may also affect the local communities, where the manufacturing plant is located. The loss of jobs may impact the local economy, with the closure of businesses that rely on the plant's employees as customers and a drop in property prices.
In conclusion, the decision to move production overseas can create conflicts between stakeholders. The company must consider the interests of all stakeholders and try to find solutions that minimize the negative impact of the decision.