Reed Elsevier Case Study


Reed Elsevier is an organization that offers professional information solutions to several organizations across the globe. Its main work is to publish books, journals and database. it also manages exhibitions and events. It has so many customers all over the world who work in different fields such as research, law and science among others.

Internal and external stakeholders in Reed Elsevier (A Reed Elsevier case study, 2014).

Difference between a stakeholder and a shareholder

A shareholder is a person who owns a part of company by means of stock possession which means that he owns some shares in a business or company. He the shareholder is at liberty to vote the board of directors. He is also entitled to collect dividends from the business and he is allowed to share outstanding cash while something is sold or it is dissolved. The shareholders are a division of a bigger faction of stakeholders. On the other hand, he stakeholder is a person who has interest in a business or is rather affected by corporation. The stockholder comprises of employees, suppliers, community, customers and the employees family. Stakeholders are of comprises the broad group since they have are either interested in the success or the failure of the business. This means that the stakeholders are not only interested in stock appreciation but also the performance of the company with differing reasons (Business case studies, 2014).

Potential for conflict …

Balancing the interest of various stakeholders is very essential for stakeholders vary when it comes to their priorities. For example share holders do expect the business to be able to make profit and get a divided on their investment. Similarly, Employees needs conducive environment in order to stay. On the other hand, the investors are interested on how the company is responding to environmental issues before they can commit themselves to invest in the business. this means that the conflict is sure to occur especially when the needs of some stakeholders take priority over the others. Therefore, the business has to make choices and sometimes it will not be liked by all the stakeholders. In addition, it is not all the stakeholders who will be pleased with the activities in the company. This is because some activities may not create immediate return on investment but they can be very good in supporting the business ethical standards. This means that the company needs to communicate and explain the policies to every stakeholder in order to help them understand how some activities will provide a long-term value ((Ward Howell international, 2014).

 More, so by supporting employees can lead to trade-offs. For example, Reed Elsevier offers their employees a development opportunity to enable them reach their potential. Therefore, it is the work of Reed Elsevier to justify this kind of investment against the opportunity cost since they use time and resources for other reasons other than what it is intended for. Conversely, Reed Elsevier needs to assess the potential downside if they fail to train their employees. This could ether lead to the company losing some of its competent employees to other organizations/companies or employees making terrible mistakes due to lack of training(A Reed Elsevier case study, 2014).

Benefits the company gains by focusing on the stakeholders needs

It is essential to note that the business cannot work on isolation for the business has an impact on the surrounding community. Therefore, Reed Elsevier has a strong believe that they are accountable to communities and so they need to give them something in return. For instance, Reed Elsevier values people and this is one of their main stakeholder focuses to value and recognize people. By so doing they are a able to benefit since they are able to have motivated employees who are very loyal. Reed Elsevier also support and reward their workers; this makes the company to benefit from the services they receive from these worker since they feel encouraged, they feel that their ideas and contribution is valued. This makes the company to benefit from the improved efficiency which helps in reducing costs. This reduction of costs increases sales and thus improves revenues meaning that it increases profitability. To attract and keep good employees helps the business to gain its objective which makes them to meet the desired expectations of customers (A Reed Elsevier case study, 2014).

In addition, Reed Elsevier are able to produce the good quality products and services by listening to their customers and meeting them at the point of their needs. by so doing the are able to listen to the innovative ideas which helps them to create cost-effective as well as convenient solutions to their business challenges.  Reed Elsevier is known for providing online services to their customer where by the customers cross link and gather information.


Reed Elsevier has its focus on all the stakeholders which ensures that they are able to keep all aspects of the business balanced. They are able to meet most of the expectations and the need of the stakeholders. They also have corporate responsibility touching all aspects of the business and thus they strengthen their business. Reed Elsevier has a strong believe which helps them to sustain their business model thus experiencing growth. This belief is their responsibility of contributing positively to the environment, customers, society and employees among others.


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