1.4 - Stakeholders

Question 1

what is a stakeholder

Answer 1

an individual or organisation that is interested or impacted by the decisions of a business

Question 2

2 types of stakeholders

Answer 2

• internal
• external

Question 3

internal stakeholder definition

Answer 3

stakeholders that are a part of the business at stake, they are directly impacted by decisions made by the business

Question 4

external stakeholder definition

Answer 4

stakeholders that are not a part of the business at stake, yet they are still interested in the decisions of the business

Question 5

examples of internal/external stakeholders

Answer 5

internal
* employees
* managers
* shareholders
external
* government
* suppliers
* consumers
* pressure groups
* banks/lenders

Question 6

conflict between different stakeholders
examples and descriptions

Answer 6

managers vs consumers
* managers want to raise prices
* consumers want lower prices
managers + employees vs. shareholders
* shareholders want higher dividends
* higher dividends - AKA - lower bonuses for managers + employees
shareholders and managers vs. pressure groups
* shareholders - not interested in environmental harm
* pressure groups - discontent if business harms environment

Question 7

how can stakeholder conflict be revolved

Answer 7

• reconsidering the objectives of the business
• considering the power/influnce of different stakeholders
• designing policies that involve most stakeholders

Question 8

using what matrix can stakeholder conflict be resolved

how does this matrix look?

Answer 8

stakeholder influence matrix/stakeholder map

Question 9

what could be the aims of different internal stakeholders?

Answer 9

employees
* increase pay
* increase job security
managers
* increase pay
* increase bonus
* long term financial success of business
shareholders
* increase dividends
* to achieve a gain