Monday, January 16, 2012

What are three stakeholder groups who might lose from the building of the factory? The XYZ Corporation is applying for planning permission to...

1.) Local competitors: As the XYZ Corporation is a large multinational business that produces similar goods to local businesses in the area, these smaller local businesses may find it extremely difficult to compete with XYZ Corporation. Since XYZ is larger and more established, it most likely benefits from economies of scale, meaning that it will probably be able to produce competitive goods at much lower prices than the local competition. This could ultimately force several of these local businesses to shut down and thus increase unemployment.


2.) Skilled unemployed workers: The text states that XYZ will be able to create one thousand new jobs for assembly line work. However, since the unemployment rate is particularly high among skilled workers, the creation of these manual jobs will not resolve the problem. In fact, it actually might force these skilled workers to accept jobs that are inferior to their capacities and qualifications, thus creating underemployment.


3.) Inhabitants of the countryside: As the text states that land is scarce and that the new developments of XYZ would have to be built in the beautiful countryside, people who live in the quiet, natural countryside will suffer from the construction of these projects (noise, ruins the beautiful scenery, pollution).

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