Skoda Auto Case Study

a.The two internal stakeholder groups suggested in the case Skoda Auto case study include the employees as they are the ones who were dissatisfied and went on strike which in turn affected the profit to the shareholders of the public limited company.

b.Considering that this is a multinational business, one of Skoda Auto’s stakeholder conflicts was that the Czech government hadn’t seemed to be regulating the unfair business practices such as the Czech Company’s adherence to employment legislation. Having felt neglected their full benefits and pay, the Czech employees resorted to a workers strike at an attempt to raise awareness of their dissatisfaction.

c.To minimize such a conflict, managers and directors of Skoda Auto could establish means beyond the government of each country where they are stationed to regulate unfair business practices. This would in turn decrease their reliance on the governments in influencing their profits. This may be costly but when it comes to larger businesses the managers and directors must avoid dilution of control considering the scale of the business (as is shown in this case study Skoda Auto lost a staggering $2.9 million per day alone). Yet if the business was much smaller, say on a national level, it would seem ridiculous to invest money into regulating unfair business practices as this is an aspect regulated by the government already. However, when the business runs on such a scale that there could be repercussions on the economy, further measures must be taken to ensure the fairness and equality upheld by the organizations in all companies worldwide.