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  • September 24, 2016
  • David Marks
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Impact Of Decision On Stakeholders And Other Business Concern

Introduction

Impact Of Decision On Stakeholders And Other Business ConcernIn the corporate world, decision making is a routine process. This process is critical for the business world as successful and effective decisions by the management lead to earn good profits, whereas unsuccessful decision may make the company suffer huge losses. Therefore, the process of decision making is crucial in the business world. In the decision making process, the company may follow the predetermined steps and also use various techniques and tools such as statistical tools. Based on the results, the management prepares the action plan and implement the decision taken. The process of decision making may be collective, engaging the employees of the organization or may only be conducted by the top management. The decisions taken may also face some conflicts or dissatisfaction by the employees of the organization. However, the management of the organization needs to address and resolve this conflict and resistance to change in order to successfully implement the decision taken.

This report discusses the case of Sun Power company which involves the decision making process and its implementation. The report throws light on the implementation of the decision and its impact on the company’s business concern and stakeholders.

Decision Process

In the case give, the company Sun Power located in Oakland California, who is into manufacturing of solar panels, is financially performing well. However, the growth of the company has declined and the management is expecting the decline in growth for next 2 years. This being the concern, the management analysed the factors affecting the growth of the company. It was found that this decline was due to increased cost of the tax expenses, government regulation, cost of leasing and property and other utility expenses. Furthermore, the management found these expenses could be reduced to a great extent if the company moved its business to New Mexico. After reviewing the options and assessing the objectives, the management decided to the business to New Mexico. However, with this decision the business concerns and stakeholders will be impacted. The rest of the report will discuss the consequences of the implementation of decision on the stakeholders and the implementation plan to address this change.

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