A new plastics factory is to be built in your country. It will employ many workers and will export some of its output to other countries. It will be built on farmland several kilometres away from the main city. Other plastics businesses are worried about the competition it will bring. It could lead to lower prices for plastic products. Local residents have mixed feelings about the plan. The factory will use specialised equipment to allow for division of labour. a) Identify four stakeholder groups that will be affected by the plan to build this new factory. b) Discuss how two of these groups might be affected by the new factory.  How might stakeholders be affected in both positive and negative ways? c) Assess the effect on workers of using division of labour in the new factory and consider both advantages and disadvantages to workers.

Expert Answers

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The four stakeholders here include, factory owners, local plastic businesses, local people and workers (or potential workers of the factory). Among these stakeholders, the factory owners stand to gain a lot from opening of this plastic factory. Given the potential of exporting the products, there is profit to be made by the factory owners. They may face some resistance from local plastic businesses, but overall they stand to gain from the factory. Local businesses tend to lose out, since cheaper products and better quality may put them out of business (or at least cause them loss). Local people have both positives and negatives from this project. On one hand, they will be able to buy better quality products at lesser price and some of them may be employed by the factory. One the other hand, some of the local residents may be stakeholders in the local plastic businesses and may lose out on revenues or related advantages. In addition, the farmland on which factory will be built may cause local residents to lose out on the farming goods no longer grown on that formerly agricultural land. 

Hope this helps. 

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