Business studies investigation Essay

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Evaluate how dyson's stakeholders might be affected by the decision to move production to Malaysia

A stakeholder is someone who is affected by a business and can be either internal or external to the business. If Dyson were to move production to Malaysia, them this would affect stakeholders in many ways both internally and externally. One stakeholder that this would affect would be the employees who currently work for the production line in the UK. This is because by moving overseas, this would leave the employees in the UK without a job, and therefore having an effect on the area around the factory that has been shut down, for example, all the local businesses around that area might have to shut such as cafes, as all the workers might go to the them to have dinner, and without them this could make a bad effect on the economy. However this would have a positive effect on other stakeholders, such as the area that production line is moved to in Malaysia. This would create thousands of more jobs as it would need more employees, and due to the country being an LEDC(less economically developed country) lower wages can be paid, therefore lowering costs and being able to employ more people. This would improve the economy there, and perhaps bring more business to the area. This could potentially backfire as moving the whole production line to Malaysia could make a loss in the long term as shipping costs may weigh the costs back down again that they could of saved in the first

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