Goaway Hotels

The board of directors

Power: Low

surprisingly perhaps. However, the new employment legislation appears to limit significantly
directors' freedom to reduce labour costs by changing contractual terms. The directors also have
little say over the decision of shareholders to sell shares. (This demonstrates that you cannot take
anyone's role for granted.)

Level of interest:

High

as this is a major decision, integral to the directors' plans for the future of the Goaway hotel chain. It
may also have a significant effect on their remuneration.

Shareholders

Power: High

because the shareholders are currently in a position to sell their shares if they feel that theyhave
received a good offer. If they do, unions and employees may find that the international company
isable to take a much tougher approach.

Level of interest: Low

as none of them participate actively in Goaway's decision-making. Their mainconcern is whether to

continue to take dividends or realise a capital gain from their investment.

Trade unions

Power: High

This is because they have the economic power to take legal action to prevent Goaway fromchanging
their members' employment terms.

Level of interest: High

This is because they wish to protect their members.

Migrant workers

Power: Low

This is because replacement workers can be recruited easily from the home country.

Level of interest: Low

The migrant workers seem quite happy with their current employment terms, eventhough these are
not as favourable as the home country's workers