1.4 Stakeholders

Question 1

What is a stakeholder

Answer 1

any person or organisation with an interest in the business

Question 2

What are dividends

Answer 2

Part of a company’s profits paid out to shareholders each year

Question 3

Who are the main stakeholders of a business

Answer 3

Employees - People who work for a business
Owners - Individuals who the business belongs to. They are the shareholders
Customers - people who buy products from a business
Community - People in the surrounding area
Suppliers - People who provide goods to businesses
Government

Question 4

What are the aims of stakeholders

Answer 4

Employees - secure jobs and higher earnings
Owners - High dividends and share price
Local community - Jobs, environmental impact
Government - Legal behaviour, taxes paid, growth
Suppliers - Paid on time, kept informed of any changes to the business Customers - Useful, accurate information on the product, good service, value for money

Question 5

How does a business have an impact of stakeholders

Answer 5

• Success of business will affect the number of people employed and how much they earn
• Values of owners affects treatment of employees
• A business impacts the local community
• Treatment towards suppliers impacts success
• A successful business can increase dividends and rewards for shareholders

Question 6

How can stakeholders influence a business

Answer 6

Employees - go on strike
Suppliers - decide whether or not to raise prices
Government - Make new laws
Customers - Can decide whether or not they want to purchase goods
Local community - Protesting

Question 7

How do employees go into conflict with other stakeholders

Answer 7

• Employees want more profit and owners want more profit as well
• Employees also want to get promotion oppurtunities which puts them against their managers

Question 8

How do managers go into conflict with other stakeholders

Answer 8

• Managers want promotion to be the owner of the company which puts them against the owner
• Managers wants their department to be the most sucessful which puts them against over managers

Question 9

How do customers go into conflict with other stakeholders

Answer 9

Customers want cheap products as well as a satisfactory product whilst owners want to have the highest amount of revenue they can get

Question 10

How do local communities go into conflict with other stakeholders

Answer 10

• Local communities want the business to be fairly quiet,which may come into conflict with successful 24/7 businesses
• Local businesses also want their company to be enviromentally friendly which comes into conflict with raw material companies such as coal mining companies

Question 11

How do suppliers go into conflict with other stakeholders

Answer 11

Suppliers want to maximise their profit as much as they can so they come into conflict with owners who want to make as much profit as they can