1.4 stakeholders

Question 1

stakeholder

Answer 1

person/organisation that affects or is affected by a business
often classified as internal vs external, market vs non market, primary vs secondary

Question 2

examples of internal stakeholders

Answer 2

employee, managers, shareholders

Question 3

examples of external stakeholders

Answer 3

suppliers, customers, government, media, community

Question 4

interests of internal stakeholders

Answer 4

• shareholders focus on returns on their investments
• CEO/managing director focuses on coordinating the business strategy and delivering profits and returns that satisfy the shareholders
• senior managers focus on strategic for their functional areas
• middle managers focus on the tactical objectives for their functional areas
• foremen and supervisors focus on organising tactical objectives and formulating operational objectives
• employees and their unions focus on protecting their rights and working conditions

Question 5

interests of external stakeholders

Answer 5

• government (at all levels) focuses on how the business operates in the business environment
• suppliers focus on maintaining a stable relationship
• customers and consumers focus on their best product that meets their needs
• people in the local community focus on the impact of the business in the local area
• financiers focus on returns on their investments
• pressure groups focus on how the business has impact on their area of concern
• the media focuses on the impact of the business in terms of news stories