Stakeholders of a company are those individuals that enhance the existence of the company. Internal stake holders are those entities found within the business such as employees, managers, directors and the company owners. Employees work with the aim of earning an income and business owners expect to get profits from the business. External stakeholders are not found within the business but are highly impacted by its performance. They include consumers, investors, suppliers and regulators. Business closure affects all investors because they depend on the success of the business for their income, profits and interests.
If Wanda closes salty pawz business, both the internal and external stake holders will be affected in different ways. Investors who could have contributed towards the business growth might not get the money they invested back together with the interest. Investors expect to earn income from their investment. By investing in salty pawz, they expect to share in the profits of the business. Closing up of such a business will leave investors loose the money invested. No returns will be given for their invested money during the startup and this leaves some investors with unbearable losses.
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For internal stakeholders, there would be loss of jobs and therefore loss of income as well. Salty pawz employees will no longer be able to earn any income. The workers that lose their jobs will be forced to join the ranks of the unemployed and most of them might suffer long-term unemployment. The loss of income can lower the individuals’ living standards and they may experience troubles in paying bills due to loss of insurance. The mental impact can cause stress-related problems and depression because such people depended on the job for their livelihood.
