It was founded in 1942, in Oxford, England. Sofas is also in the service sector, offering relief across the Globe. This means they are an international company. Their mission statement is as follows: ‘Working with thousands of local partner organizations, we work with people living in poverty striving to exercise their human rights, assert their dignity as full citizens and take control of their lives’ Employees: 2000 in the UK Sofas is a private company limited by guarantee. This is a rare sort of corporation, used by organizations who may need legal representation whilst still acting in the interest of the public.
Instead of shareholders, companies limited by guarantee have members who act as guarantors instead of shareholders. These people will be liable for any debts if the company winds up. HASH on the other hand is a Public Limited company. This means they are traded on the stock exchange and can be purchased by anyone. The advantage of this is that it can raise capital. Additionally, as a limited liability company, if they were to get into financial trouble, their personal would be separate from the business and not held responsible for any debts.
A disadvantage is that they must report the Tate of their finances to the public, so their worth can be evaluated by potential investors. They are also more strictly regulated than Private Limited Companies. Task 2: UP – Describe the different stakeholders who influence the purpose of two contrasting organizations. Both organizations have internal and external stakeholders. In business, a stakeholder can be described as someone with an interest in a business being successful, whether that’s for financial gain or a different reason.
HASH and Sofas will both have similar types of stake holders, as they are both businesses and aim to prosper, therefore they will share similar truce. Internal Stakeholders CEO – A CEO otherwise know as Chief Executive Officer is usually recognized as the most senior figure and leader of an organization. COO’S ultimately have the biggest influence on the purpose of the business as they are in control. Despite this, they must still act with in the interest of the business and its other stake holders. If they do not then other members of the board may come together and choose to terminate them as CEO of the company.
Coo’s must know the business they head inside out. They are responsible for creating an organizations strategy and then communicating that to the public. Then they must put this plan in to action and make sure it is enforced. HASH’S current Chief Executive Officer is Stuart Guiltier Born on the 9th of March 1959, Stuart Guiltier has been moving up the ranks at HASH since the early eighties. His work has seen him travel all over the globe and based in locations such as London, Hong Kong, Tokyo, Koala Lump and the United Arab Emirates.
After leading HASH through the Asian financial crisis in the nineteen nineties, at the turn of the millennium he was then appointed Group General Manager. The next decade saw him move back to London, and then eventually be appointed as group CEO in 2010. Sofa’s current CEO is Mark Coloring. He was born in 1957. He lives in Richmond, Surrey. Sofas is not the fist company or organization Coloring has been Chief Executive Officer of. Prior to Sofas, he was in charge of Menace and VS.; both not for profit organizations. This means that it is likely he has the appropriate skills to be the CEO of Sofas.
Through these roles he also gained important international experience. This is important and can be applied at Sofas as they aim to ‘offer relief around the globe with international partners’. Coloring studied law at Oxford University (where Sofas is based and was founded). Then he went on to get a masters degree in social policy and planning in developing countries from London School of Economics. This has clearly helped sculpt his career. As a result of his work, in 2008 Coloring was awarded a CUBE for services to tackling poverty and disadvantage.
He then went on to become CEO of Sofas in May 2013. Other internal stakeholders are the members of the board. Like all other organizations, HASH and Sofas both have a board made up of directors. Typically the larger the business, the more members it will have on its board. These people also have a large influence on the business. They act as a watchdog and have the power to make changes such as removing a CEO if they feel it’s the necessary action to take. They are also used to represent the shareholders views to the CEO and other employees.
This is also beneficial to them as they are usually big shareholders in the business themselves. The board of directors will also be heavily involved in the finances of the organization, having the power to approve budgets and also influence other areas where money is spent in the interest of expanding the business. Finally, the board of directors will need to protect and maintain the image of the company conveyed to the company. This means scrutinizing every department and area of the business and implementing change if they feel it’s needed. They know a company or organizations image is key to being successful.
HASH’S board is made up of the following members: Robin Phillips – Global Head of Banking and Group General Manager Kevin Dadoes – Group General Manager and Vice Chairman of Global Banking and Markets Jose-Luis Guerdon – Global Head of Markets Spencer Lake – Global Head of Capital Financing Gordon French – Head of Global Banking and Markets, Asia-Pacific Patrick M Nolan – Group General Manager, Chief Executive Officer, HASH Global Banking and Markets, Americas Mohammad AH Thesauri – Deputy Chairman and Chief Executive Officer. HASH Group – Middle East and North Africa Sofa’s board consists off.
Penny Lawrence, International Director Jane Cotton, HER Director Sue Turrets, current acting International Director Ben Phillips, Campaigns & Policy Director Bob Humphreys, Finance & Information Systems Director Tim Hunter, Fundraising Director Andrew Horton, Trading Director Jack Lunged, Communications Director The last internal stakeholders are the employees. The employees represent the company on the front line. HASH and Sofas both have a large workforce. Sofas has over 7000 employees staffing 220 shops in the I-J. HASH has even more employees, 47,500. 500 of these are based at the same office in Loon’s Canary Wharf. A lot of employees are needed to man over 1000 HASH branches in the KICK. Employees can influence the direction of a business very easily. If they are not happy with the way its run they will vote with their feet. This could be through a number of ways such as striking or just leaving. You can often tell if a company is doing well or not by its staff turnover. If a company is doing well the turnover will likely be low. This means staff are staying for long periods of time and are committed to the company.
In turn this suggests that it’s a good place to work, they are treated fairly and are earning fair money for the job they are doing. On the other hand, if the company has a high turnover in staff, this suggests problems to other stakeholders and potential investors. The high turnover will be as a result of staff being unhappy for any reason, but in normally oils down to low pay and working conditions. The fact that an organization is UN able to keep its staff happy suggests deep rooted problems and issues internally. This is how employees can have a powerful influence on the direction of a company.
Businesses will also have a number of external stakeholders. An external stakeholder is someone who is not directly involved in the running of the business, but are still an important cog in the machine. Again, HASH and Sofas will have a similar structure of external stakeholders of influence each organization in different ways. Firstly, customers have a massive influence on NY business, and without them the business would not exist. Both Sofas and Hash’s customers are the general public. Sofas rely on people buying their items in their charity shops to raise money for good causes.
HASH need people to bank with them so they can use that money to fund other projects and investments they are using to continuously expand their business. As a result of this organizations must keep their customers happy, otherwise they will fail. Another important external stakeholder in any organization is the government. The Government have an interest in every business because each one has attention to contribute to the economy. In turn, this improves the image of that government, as encourages the public to continue to give that party power.
It is said that the most important part of reviewing a party’s reign is looking at the economy during that period. The Government can influence an organization in positive and negative ways. They can supply grants to a business. This is a way the government can support a scheme they think is worthwhile. The Government will give grants to both profit and non-profit organizations such as HASH or Sofas. On the other side of the coin, the government will also tax evilly bigger business. There are some loopholes around this though, which have been exploited by many well-known companies.
It is estimated that at least half of the Auk’s top 100 companies are taking steps to avoid paying tax in one way or another. Big American brands are also known to do this, most famously Amazon. In 2011 the online retailer used Luxemburg as haven to reduce tax on profit made in the I-J. That year they only paid 1. 8 million pounds in corporation tax, despite making 3. 35 billion in sales in the KICK. From this it is clear that the Government’s influence on an organization is so strong it can Orca them to move their EX. headquarters to a different location.
Finally, other important stakeholders are the shareholders. Not for profit organizations rarely have stakeholders but Public companies such as HASH do. These shareholders can also be considered as creditors. A share of a company has a price, and in return will either earn or lose its investor money. A share has a certain price, and is a portion of the total value of a company. Shareholders influence a business in may ways. Firstly they have voting rights. For example if a company was threatened by a takeover from another company the shareholders can be involved in deciding whether it goes through.
They also have power to remove personal inside the company such as internal stakeholders. Organizations need to project a positive image to their shareholders because this will give the shareholders confidence that the company is in good financial shape. Shareholders having confidence is important because they will be more likely to hold on to the shares, meaning their value will be maintained. If the share price drops the company may come under pressure from another company who may be attracted by the lower price and put in a take over bid. These reasons influence an organization to run how the shareholders think is best.
Task 3: MI – Explain the points of view of different stakeholders seeking to influence the aims and objectives of two contrasting organizations. Each stakeholder will look to influence the business in a way that works towards achieving their personal goals. These goals could be set by the person in charge of them or they could be determined individually and privately. The problem with multiple stakeholders having different points of view is that one person seeing something as a good thing can have the opposite effect on another stake holder.
Here are some examples for HASH of situations which could cause conflict between stakeholders: Employees are attracted by a company most commonly for financial reasons. They could decide to apply for a job based on the salaries and benefits or working for the business, such as HASH. If employees don’t feel like they are earning enough based on their workload, they will ask for a pay rise. If they do not get this then they may threaten to leave and seek new employment. To avoid this, an organization needs to ensure their staff feel they’re being treated fairly. Giving pay rises will reduce the profit made by the business.
This inflicts the shareholders objective of the company making as much money as possible. Despite this, in my opinion think sacrificing some profit to keep staff happy is necessary. If this does not happen, the staff turnover will be high. This does not reflect well on the business. It will prevent the business from attracting the best workers, as they will know that previous staff have had problems. Therefore they will look elsewhere for employment. The company could end up with workers who are not motivated and struggle to fulfill their job role. Another example could be the CEO wanting to minimize the tax bill.
This ill also mean higher profits, reflecting well on him or her during the time they are in charge. As previously explained, many companies do exploit loopholes allowing them to dodge paying tax, such as; Amazon, Google, Cataracts and Apple. The stakeholder the Coo’s intentions would have a negative effect on is the government. Big businesses are big business in themselves for the government. They can contribute a huge amount in tax to the economy, which benefits the government. If a CEO takes steps such as tax avoidance to minimize the tax bill, then this weakens the economy, thus having a negative effect on the government.
Finally, the most simple and fundamental example. Customers want the best service or product at the lowest price. We subconsciously rate this as ‘value for money. If the customer thinks they can get a better value product or service for the money they are willing to pay they are going to take their trade elsewhere. This goes against the board’s aim of being able to provide the best service yet at the highest possible price. Finding the right balance between the quality of the product or service and its price is important for any business. If the quality is to low and the price is high not many people will buy the product.
On the other hand if the quality is high yet the price is low, the company will not be able to make profit and may be running at a loss. For a business to be successful a balance needs to be struck that suits both stakeholders; customers and the board. When it comes to Charity’s such as Sofas most stakeholders have the same points of view and objectives whilst seeking to influence the business. This is wanting the organization to do well for the good of the people it aims to help, although they will still be wanting to make themselves money through being paid a salary.
