Sample Term Paper

There are several organizational and environmental obstacles that have an impact on the stake holders of a firm or business.

Some of the organization factors that affect the stake holders is the ability of the decision makers to make a good solution to solve the problem at hand, though the this function of decision making cuts across all the four function of the business, it’s the responsibility of the management to make decision, so in a case where by the management is ill equipped and ends up making a wrong decision, this will affect the stake holders since there will be wastage, misappropriation of fund and this will eventually be reflected in the share earning, i.e. they will be reduced. Lack of enough capital can affect the decision made and eventually b e reflected to the shareholders return. Incase where by the management makes a decision to change all the operation due to change of technology and increased competition, the firm may have some inadequate capital and low chance to secure a loan, this will lead to the decision made not being implemented and therefore the affect the shareholder since the firm may be closed due to low market share since its products may be too expensive in comparison to these of competitors.

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