1.5 Stakeholders In Business Flashcards
What effect do employees have on business?
-Employees can effect business by taking industrial action if they have not been treated well e.g. going on strike
-If they work to a good standard it can improve productivity
What effect does business have on employees?
If the business does well then employees might benefit from a pay rise, bonus, promotion and better job security. Conversely if a business closes employees can lose source of income
What effect does business have on customers?
•If businesses put prices up then customers cannot afford to buy as many things as before. If businesses open new stores then customers may not have to travel so far
What effect do customers have on a business?
Customers can boycott businesses which damages sales and revenue. Customers can leave negative reviews which can damage the brand image of the business and in return reduce revenue
What effect can a business have on suppliers?
If a business does well, they will usually have to buy more stock from suppliers increasing the supplier’s revenue. As businesses grow in size they can also expect better deals from suppliers( better deals and better credit terms)
What effect can suppliers have on a business?
Suppliers can refuse to supply to businesses that do not pay promptly or pay with a fair price. They can also charge interest on invoices that are paid late
What effects can a business have on the governorment?
The governorment would benefit from businesses as they receive tax on their profit. Moreover, If the business employs people more people are able to pay taxes and less unemployment benefits need to be paid
What effects can a business have on the local community?
Businesses can affect local residents positively by providing goods and services as well as jobs. However, negatively as they can create more traffic on roads, more noise and light pollution.
What effect can the government have on a business?
The government can introduce new laws which cause money to implement and can put national minimum wage up
What effect can the local community have on a business?
They can protest against a business in order to discourage it from doing something leabing the business with a negative brand image.
What effects can a business have on it owner?
If the business is successful, owners are rewarded with a share of profits and personal satisfaction. If a business fails they could lose investments (and more if they are an unincorporated business)
What effects can owners have on their business?
They can put new rules in place to help the business expand and charge how the business is ran
List some possible stakeholders?
•The government
•The local community
•Suppliers
•Employees
•Owners
•Customers
