AQA BUSS4 Section B Practice Question - Dyson

During 2002 and 2003, entrepreneur Sir James Dyson transferred all of his business’ manufacturing activities to factories located close to hsi firm’s main suppliers in Malaysia.  The decision resulted in the loss of over 800 jobs in the UK.  However, the research & development activities of the business remained in the UK along with sales and marketing functions supporting the growing global brand.  The decision seems to have paid off for Sir James.  He controls the bulk of shares in his main holding company, which is unquoted and highly profitable and his net worth is valued at more than £500m by rich list compilers.

To what extent should strategic decision-making be mainly determined by the interests of shareholders rather than the broader range of stakeholders.  Justify your answer with reference to Dyson or other businesses that you know. (40 marks).

Background reading / viewing

Master of invention (or does Dyson suck?)
Dyson’s chip with everything (2005 interview)
Dyson is making pots of money for Britain by going to Malaysia (2005)

Outline answer

Will appear here in March 2010

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