1.4 Stakeholders

Question 1

Internal stakeholders

Answer 1

Memebrs of the firm, the emplyees, shareholders, managers, directors of the business

• Shareholders
  objectives:
  1. Maxamise dividends
  2. achieve capital gain in value of companies share
• Managers
• objectives:
  1. achieve objectives at their level in shortest amount of time with lowest costs
  2. maximise own benefits
  3. prfoit maximization

Employees
- objectives:
1. good working conditions
2. maximising pay for min work

CEO
- objectives:
1. keep shareholders happy.

Question 2

Stakeholders

Answer 2

a person, group or organization with a vested interest, or stake, in the decision-making and activities of a business, organization or project .

Question 3

External stakeholders

Answer 3

Individuals and organisations not part of the business buy have direct intrest in its activities and performance.

Govormernt
- objectives:
1. tax revenue
2. no unfair business practices
3. health/saftery standersa are met
4. complienece with employment legislation
5. consumer protection laws upheld

Costumer
-objectives:
1. greater choice
2. better quality products
3. more competitive prices

Suppliers
- objectives
1.provide business with stocks of raw material
2. regular contracts with clients at competitive prices.
3. request costumers pay any outstanding bills on time

Finanacers
- objectives
1. the borrowing organizations ability to generate enough profit to repay debts
2. making regular interest payments

Pressure groups
-objectives:
1. influence gov policy
2. demand business to provide jobs
3. accountability of business actions

competitors
-objectives
1. remain competitive
2. benchmark performance
3. be creative and innovative

Question 4

Stakeholder conflict

Answer 4

Stakeholder groups can have conflicting interests and objectives, which can lead to tensions and conflicts

• happens because business can’t meet all objectives and needs of stakeholder
  -emplyees demand high salaries and low workload, managers demandopposite
• suppliers expect business to pay full price to improve cash flow, business expects discount for buying in large quantities.
  conflict=damagin business

Question 5

3 key issues to deal with conflict

Answer 5

• types of business entitiy
• goals and objectives of business
• source and degree of power each stakeholder group

Stakeholder mapping tool