1.5 Stakeholders In Business Flashcards
What are Stakeholders?
Groups of people or individuals who have an interest in a business.
What are Internal Stakeholders?
People with an interest in and who work in the business.
What are External Stakeholders?
People with an interest in but who are outside of the business.
Effect of an Owner?
See profit as their main aim so will want to run the business cost effectively.
Effect of an Employee?
Employees want to be treated well and receive a fair wage. Without this they could go on strike.
Effect of Customers?
Customers want to receive a good service and pay a fair price. Without this they could go to competitors.
Effect of Suppliers?
Suppliers want to be paid on time. Delayed payments could mean the supplier refuses orders.
Effect of Government?
The government wants business’ to succeed however an increase in income tax means less money for customers.
Effect of Local Community?
The local community will want jobs in their area however they could protest against a new business development.
