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Indirect participants

We also have a duty to those that depend on us through others. Major car manufacturer


Indirect participants are those who do not deal directly with the organization but still depend, even to a small extent, on its success and would be affected by its poor performance or failure. They deal with the organization at a distance, usually through another participant. Indirect participants include suppliers of goods or services to those directly supplying the organization. For example, a foundry supplying castings to an engineering firm which in turn, supplies boilers to a heating and ventilation company; or a market analyst supplying information to a research firm which then sells it on to a merchant bank.

They are still vulnerable: 
The indirect participant could be even more vulnerable than a directly involved participant. For example, a glass foundry could be dependent on supplying special glass for a new type of car headlight, which an electrical supplier supplies to a car manufacturer. If the car manufacturer discontinued using this type of headlight the electrical supplier may be able to supply an alternative, but the glass foundry might then have no market for its special glass.

They need to be thought about: 
Users of the organization's products who buy them from distributors or other third parties are also classed as indirect participants. However, the organization may regard them as customers and canvass their requirements as if they were dealing directly with them. - the car owner or user deals with the manufacturer indirectly, through distributors, but the manufacturer still regards them as a customer and may mail them directly to find out their views about their particular car (since car users usually have the choice of which car to drive, in terms of our model they can also be classed as customers). Indirect participants also include the relatives and dependants of employees, who are obviously affected by the success or otherwise of the organization. The organization will often recognize the importance of this category by inviting spouses and families along to overseas trips, office dinners or parties.

While the organization itself can communicate with direct participants, the main means of communicating and influencing the majority of indirect ones is by public relations, the media, advertisements and intermediaries. Whatever the status of indirect participants they need to be catered for, since they are involved in the success of the organization.  >>>