1.4: Stakeholders Flashcards
Who are the main Stakeholders of a Business?
Owners - Sole T, partners etc
Customers - who pay for the goods
Employees - who work for and get paid by the business
Local Community - businesses and people who operate or live close to the business
Suppliers - Sell the business goods and services so it can carry out its activities
What are Stakeholder?
Individuals and Businesses that are affected by and affect a business
What are the main objectives of Stakeholders?
Owners - financial reward
Customers - quality and value for money
Employees - good wages - interesting and secure jobs
Suppliers - regular orders, payment on time, clear communications re: future orders
What is the impact of business activity on Stakeholders?
Financial activities - affect suppliers by delaying payment to help with cash flow - Also using power with suppliers to reduce prices - Causes issues with suppliers if they dont get money on time
Production activities - increase can lead to more jobs for local people and larger orders with suppliers. Can also lead to more pollution and congestion on roads. Can put pressure on employees to work longer hours
Selling activities - pricing impact consumers e.g. benefiting from low air fares
How can Stakeholders influence a business?
Communication - social media to feedback views - lots of people review so can affect reputation if bad
Direct Action - Employees can go on strike or Consumers may boycott a business’s products
Using their Power - Local government or communities
What are the types of Stakeholder conflict?
Employees vs Owners - want pay rise mean less profitable
Customers vs Suppliers - business reduces price pays to supplier to allow product to be sold for less which is good for customer
Local Community vs Owners - owner decides to operate 24hrs a day to inc profits - Community will see more traffic, congestion and pollution
