Strong Stakeholders

Skoda Auto, which is located in Czech, perhaps has too many high risk stakeholders. Because of it's large export habits, the country has become too reliant on the money it brings, leading to crisis when a worker strike could end up creating huge losses of income. This raises a huge issue of whether it is wise for a government to rely on an company with it's own private interests, in order to supply income for the economy. There is too much vested in a relationship that is so precarious.

Nonetheless, the two main internal stakeholder groups mentioned by this issues are the employees, who feel their benefits are not substancial enough, and require higher pay, or they will strike. And, the managers and directors, who have to decide whether or not to sacrifice a large portion of their income to satisfy worker wants, or find a way to violate the labour rights, and keep their income high. There is also an added pressure of the shareholders, as it will be difficult to keep them happy if they are losing a large amount of their dividends and the stock prices lower, due to the loss of income. They will surely rebel as well.

The main conflict that exists between the main stakeholders, is the wants of the workforce and employees, which conflicts with the objectives of the shareholders, as well as will put a heavy strain on the government, as they rely on the income that the company provides. It could cause major problems within the country itself and indirectly affect the consummers as well, as the prices will probably raise in order to compensate for the increase in production costs. The competitors will probably be happy though, as the prices will raise, and the customers will go to them instead, to get better deals. Although, with automobiles there is a slight difference, as the cars are different depending on the brand, and if Skoda really is such a huge company, the raise in prices may cause less damage for the amount of customers than if the company was small the the products were the same for every company. Hopefully, with Skoda's reputation, they will be able to hold on to their customers without losing them, and causing a greater loss of income because the customers do not want to pay such high prices. It would depend on the time in which this was occuring. Since the issue started in 2007, there may be less tolerance for the price rise, as that was soon after the economic crisis, so people were less willing to spend more. That was probably the first cause of the strike, as the workers were suffering from the affects of the economic crisis, and wanted a higher pay in order to balance out the difference.

There are several ways that this conflict could be minimized. One main way, would be to raise prices. It is risky as the customers may not tolerate it and cause a greater loss of income, but if it was coupled with a greater public acceptance, it may be the right move. The factors are risky, but if the company was able to market itself well and continue bringing in good customers, adding value due to reputation and better qualities, then it could make the price raise more acceptable. One other way would be to