Baker’s Waterproofing is a small construction business in Washington, Pennsylvania that provides waterproofing and foundation repair solutions to residents and businesses in the tri-state area. Its business model consists of receiving calls from potential customers, sending a salesman out to appraise the situation and develop a solution, and finally having a crew of around 2-3 people perform necessary installations.
The largest financial concern this business faces is wasted and unused materials. This includes concrete, piping, pumps, and other materials that are broken during construction, abandoned, or needlessly thrown out. Some of the more complex systems such as sump pumps and wall anchors are very expensive for the business to purchase. The misuse of these products can cost the business hundreds or thousands of dollars. Waste increases the input costs for the job and thus decreases profits.
Customers are an important stakeholder to this business. If the job is incorrectly done, water could flood their basements and destroy property. If the price of the job goes up substantially, they may not be able to afford to eliminate the water or foundation damage that their home struggles with. Another important stakeholder would be the supplier of goods to the business. The supplier, Contractor Nation, is reliant upon the waterproofing businesses it sells to to succeed. Both businesses generate value when Baker’s Waterproofing makes more sales. Finally, the employees are a large stakeholder on the success of the company. Their insurance, retirement, and income are all tied to the success of Bakers. They need the company to succeed in order for their families to live the best lives they can. Also, if the business is succeeding, there will be more ways to move up in the company and increase their wages.
An example of a large company facing competing pressures would be the Ford Motors Company. They see great financial success in selling ICE (internal combustion engine) vehicles but many are pushing the company to go electric. These individuals predict future financial growth as well as more value for stakeholders. This value can be seen in fewer carbon emissions and simpler construction for vehicles. The conflict between current financial success and future stakeholder success is pushing Ford to invest current revenue into building factories to shift to electric in the future.