1.4 Stakeholders + Entrepeneurship

Question 1

Define stakeholders

Answer 1

individuals or organisations with an interest (stake) in a business as they are affected by the operations of the business.

Can be internal (people who own/work the business) or external (local community / gov).

Question 2

Define internal stakeholders + state examples

Answer 2

individuals or groups who are part of the organisation

employees
managers
directors
shareholders

Question 3

Define external stakeholders + state exampels

Answer 3

people or organisations not part of business
BUT have direct interest in its decisions, actions & performance

costumers. - pressure groups
competitors. - suppliers
financiers. - government
labour unions. - local community

Question 4

State objectives of stakeholder ‘customers’

Answer 4

Want high-quality, affordable products/services.
Seek good customer service and a positive experience.
Aim for value for money and consistent reliability.

Question 5

State objectives stakeholder suppliers

Answer 5

Want to be paid on time and in full.
Seek long-term, stable relationships with businesses.
Prefer firms with reliable demand and good financial health.

Question 6

State objectives stakeholder shareholders

Answer 6

Want to maximise returns on their investment.
Expect a high share price and dividends.
Interested in long-term growth and profitability.

Question 7

State objectives of stakeholder government

Answer 7

Aims to ensure businesses:
- Follow laws & regulations
- Pay taxes
- Support economic growth

Wants businesses to protect public interest (e.g. fair trade, employment).

Question 8

State objectives of stakeholder ‘pressure groups’

Answer 8

Aim to influence business behaviour (e.g. ethics, environment).
Want businesses to adopt responsible practices aligned with their cause.
May pressure firms via campaigns or public protest.

Question 9

State objectives stakeholders ‘owners’

Answer 9

Want profit and business success.
Aim to earn personal income from the business.
Seek control and autonomy over decision-making.

Question 10

State objectives stakeholders ‘employees’

Answer 10

Want job security, fair pay, and safe conditions.
Expect opportunities for development and promotion.
Seek respect and motivation in their roles.

Question 11

State objectives stakeholder ‘managers’

Answer 11

-Aim to meet company goals and boost efficiency.
-Want to minimise costs while maximising productivity.
-Interested in both company performance and personal advancement.

Question 12

State objectives stakeholders local community

Answer 12

Want businesses to create jobs and support the local economy.
Expect companies to be socially responsible and environmentally conscious.
Seek contributions to local causes and community wellbeing.

Question 13

Define stakeholder mapping

Answer 13

Visual tool that helps business identify appropriate strategies for managing relationships w/ stakeholders, by identifying which groups require close attention or minimal effort
Categorises stakeholders based on their level of interest & degree of power

Question 14

Draw a stakeholder map

Answer 14

LEVEL OF INTEREST
LOW. HIGH

         Group A: minimal effort.               Group B: keep informed  LOW.   - low interest + little power.          - to create sense of belonging + encourage support 
        - can usually be ignored.                - little effort required (eg, local community)

HIGH. Group C: keep satisfied. Group D: key player
- satisfying this group = IMP. - must be fully informed & satisfied
- must feel included +
power acknowledged (Eg, shareholders / employees)
(Eg, the media)

Y-AXIS = DEGREE OF POWER