The business environment of MMGHB Chartered Accountant includes various internal and external stakeholders, which have an interest in or are affected by the actions of the business. It is the responsibility of management (Jones) to stay responsive to their demands, says Jones.
The external stakeholders of MMGHB Chartered Accountant are the Federal, State and Local Governments, as well as the environment, and clients.
The Federal Government affects this business by controlling many important factors relating to GST changes and taxation etc. They also pass many laws relating to the way in which businesses must be run. It is the responsibility of the business (particularly the management) to stay responsive to these changes, to pay its taxes, and also to abide by the laws of which the government produces. These laws are all abided by MMGHB Chartered Accountant.
The State Government produces laws relating to payroll tax and superannuation, both of which this manager (Jones) has to stay responsive to in regard to its changes to serve its clients correctly, as this affects the operations of the business.
The Local Government is also a stakeholder in this business because it determines whether a person can set up a business in a certain location (zoning), says Jones. It is the responsibility of the management to cooperate with the local government and its decisions, of which it does.
The environment is also a stakeholder in this business because it is also affected by the actions of MMGHB Chartered Accountant. Jones’s business only uses recycled paper for photocopying, and also recycles paper of important documents after they are shredded. The responsibilities of Jones to the environment are to consider the business’s impact on the environment, and to look after the environment, of which it does.
The clients are an external stakeholder of MMGHB Chartered Accountant because they are affected by the actions of this business, but the business has little control over their actions, as accounting is based on personal preference of service. The responsibilities of this management to its clients are suitable help with their tax returns and other financial / business related matters, as well as fair prices, and friendly service.
The Local, State and Federal Governments, as well as the environment and the clients, form part of the external environment of MMGHB Chartered Accountant because they are external factors, over which the business has very little control.
The internal stakeholders of this business are Jones’s staff (Anne, Sue and Trish), as well as the manager, Jones.
Another internal stakeholder of Jones’s business is her employees (Anne, Sue and Trish), as they are affected by the actions of her business. For example, they would have no job if Jones decided to cease operations. They are also internal stakeholders because they are aspects over which the business has some control, in relation to working hours and tasks. The responsibilities of the management to its employees are fair pay and working conditions, a safe working environment, and access to training and development, all of which are provided by the business.
Jones (the manager) is also a stakeholder in this business because she is affected by the actions of the business. For example, if she accidentally gave a client the wrong information about their tax returns, she could end up getting sued by the tax department, which would mean cessation of her business.