FirstGroup plc Essay Example | Topics and Well Written Essays - 1000 words

FirstGroup plc - Essay Example As of 2009, the group earned the annualized net profit of around 6 billion pounds, which is a growth of around 31.4% from what the company earned last year. Similarly, this group has remained unaffected by current global economic backdrop, which is an amazing achievement by the company. In the future, the group also wants to maintain its market leader position and wants to expand its operation to the global market. The company wants to develop a new business plan which should not in any way ignore the aspiration of stakeholders. Stakeholders can be any group or an individual that has a stake in the organization's performance. In simple words, any one within or outside the organization who is affected by the decision taken by the business is known as stakeholder. First Group's stakeholders are its shareholders, employees, government, customers and its board of directors. According to Richard Daft, shareholders are those people who own the business and have invested the money in the business. So they would like the business to make decisions which are going to increase its profitability and lead to rapid growth of the business. Similarly, First Group's decisions are also going to affect its employees, in some way or the other. First Group PLC's decision to downsize can result in loss of job for some of these employees. First Group PLC's working policies and pay-rate is another factor that is goi ng to affect the employees. Government might be interest in the decision taken by First Group PLC because if it earns good profit, it will result in revenue for the government in the form of taxes. Similarly, government will want First Group PLC to flourish not only because it will result in revenue collection for the government, but also because it will provide employment opportunities in the economy. Customer will affected by the pricing decisions of First Group PLC. Board of Director will be interested in growth decision of the business because their salaries may be dependent on the size of the business. So they would like the owners to plough back earned profit back into the business for the purpose of expansion and this could lead to conflict of interest between various groups of Stakeholders. (Daft, 1997) Business aim is the future-vision of the business, which can be anything that the business wants to achieve in the future or the reason behind its existence. The major aim of First Group PLC is the transforming the way people travel and changing their perception about the public transport by providing people with safety and luxury and in doing so becoming the leading company of the world. In general terms, Business objective is a business strategic position that it is trying to achieve through its activities and policies. If we look at the business objective of First Group plc, we can say that it is aiming toward higher market share by offering distinct services like safety travel and other features which are not present in conventional transport companies. Another business objective of First Group PLC is rapid growth and in doing so, it is increasing the value of investments of its shareholder by increasing the market-price of the company's stock. Many businesses carry out SWOT analysis to focus on the internal strengths and