UNIVERSITY OF CENTRAL PUNJAB
GUJRANWALA
ASSIGNMENT OF GOVERNMENT
BUSINESS AND SOCIETY
Name LARAIB
Roll no GIFI6BBAM0022
Class BBA 8 (A)
SUBMITTED TO
PROF. ZOHAIB SALMAN
Explain the difference between market stakeholders and non-market
stakeholders.
Stakeholder groups can be divided in two categories.
1. Market stakeholders
2. Non-Market stakeholders
Market stakeholder
Market stakeholders are those that engage in economic transactions with the company as it
carries out its primary purpose of providing society with goods and services.
Sometimes referred to as primary stakeholders
Non-Market stakeholders
Non-Market stakeholders are people or groups who although they do not engage in direct
economic exchange with firm are affected by or can affect its actions
Sometimes called secondary stakeholders
Market and Non-Market stakeholders Activities Difference
The difference between market activities and non-market activities
Revolves around a financial stake in the company. The internal, market stakeholders
are owners, partners investors and shareholders. They also include employees. This
group of internal shareholders has a vested financial interest in the successful
implementation of business goals. Lenders and creditors are also considered market
stakeholders. All activities are designed to create an economic exchange between the
company and consumers.
The non-market stakeholders
Are based outside of the organization and have no vested financial interest in the
company. These stakeholders may be affected by the economic impact of the
company's success or failure. These stakeholders include political groups, media
outlets, the general public and other businesses. All activities are designed to provide
input, facilitate or block the economic exchange between companies and consumers.
Market stakeholders Example
An example of market activities is when a company opens a new store in a new
community. The goal of every internal stakeholder is to build the economic
exchange the sale of goods in the new location. This includes the media
campaign and marketing, hiring the right people to manage and work in the
location and operations to fulfill merchandise needs. Everyone's role internally is
to drive business in make more sales and increase revenues to make the new
location profitable.
When looking at market activities for stakeholders, the driving force is revenue
generation. Everything internal stakeholders should focus on is building stronger
avenues for more sales or higher dollars per sale. This could be raising pricing
cross and upsells or even cost cutting measures to improve profit margins.
Non-Market stakeholders Example
Using the non-market example of the company opening a new location in a new
community, we can look at the potential activities of external stakeholders. If the
store is a tattoo parlor that is located near an elementary school, the non-market
stakeholders may be divided in interests. There may be community leaders in
business development seeking to diversify the community business model with
new types of businesses.
A backlash may happen by the school parents and leaders who are concerned
with the proximity and exposure to potentially bad characters. If the community's
voice is loud enough in protest and petition, building and business permits may
not be issued, preventing the opening of the location. No business wants to face
these problems.
Referenced
Article title: What Is the Difference in a Market & Non-Market Stakeholder?
Website title: Smallbusiness.chron.com
https://smallbusiness.chron.com/difference-market-nonmarket-stakeholder-
URL:
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