1.4

Question 1

Stakeholder

Answer 1

a person or organization who is interested in or impacted by the decisions of a business

Question 2

Internal Stakeholder

Answer 2

part of the organization (within the business)
shareholders (investors)
managers
employees

Question 3

External Stakeholder

Answer 3

Not part of the business (outside the business)
customers
suppliers
government
competitors
pressure groups
banks
diff stakeholders have diff interests = conflict

Question 4

Interests by internal stakeholders

Answer 4

employees - high pay, good working conditions, job security, promotion
Manager & Board of Directors - maximize salary/bonus/perks, satisfy shareholders, responsibility, maximize profits
Shareholders
Maximize share price
Effective managers
Maximize dividends

Question 5

interests by external stakeholders

Answer 5

Customer - reasonable price, quality, choice, sustainability
Suppliers - paid on time, long term contracts, good relationship with the business
Government - jobs created, tax paid, compliance with law, may also be customers
pressure groups - follow their vision e.g. environment & human rights, local community = jobs and social impact
competitors - shake their business strategy, competition interest, comparison performance
banks - will they be able to pay back the loan, good relations

Question 6

how stakeholders agree on things

Answer 6

• higher profit may lead to higher dividends (shareholders), higher bonuses (managers) and higher salary increases (employees)
• More environmentally-friendly packaging may keep customers satisfied (consumers), employees motivated (employees) and pressure groups satisfied (pressure groups)

Question 7

managers vs consumers

Answer 7

manager may want to raise the price of the product
consumers would not want the price rise

Question 8

managers/employees vs shareholders

Answer 8

shareholders want high dividend payouts
high dividend payout may lead to lower bonuses for managers/employees

Question 9

shareholders vs pressure groups

Answer 9

shareholders might not be worried about environmental harm if it means higher profits
pressure groups would be concerned

Question 10

pressure groups

Answer 10

e.g. greenpeace - environmental company that puts pressure on other companies to be more sustainable.
often are NGOs with some sort of agenda that they want other businesses to follow

Question 11

methods to resolve conflict

Answer 11

stakeholder matrix