1.5 Stakeholders in business Flashcards
What is a stakeholder?
An individual or group with an interest in a business.
Name two internal stakeholders.
Owners and employees
Name four external stakeholders.
Customers, suppliers, government and local community.
Who are the owners in a limited company?
Shareholders
What are employees interested in?
Pay, conditions, safety and job security.
What are the owners interested in?
Profits, dividends, growth.
What are the interests of customers?
Choice, value for money, reliability, quality.
What are the interests of suppliers?
Repeated, large orders, prompt payment of bills for goods supplied on credit.
What are the interests of the government?
Profits and the taxes received on them.
Creation of jobs (less benefits to pay out, more income tax collected).
What are the interests of the local community?
Creation of jobs, may provide goods/services.
Waste, noise, pollution etc.
What effect do the owners/managers have on a business?
Make all decisions - to expand, to cut costs, to introduce new products.
Bremen shareholders are not involved in the day to day running and decision making but can vote at the AGM.
What effect do employees have on a business?
Object to changes in their work, conditions or wages.
They could strike.
Happy, motivated employees will work efficiently and produce good quality goods/services.
What effect do customers have on a business?
Without customers a business cannot survive. If they go to the competition a business may struggle to survive. If customers are happy, a business may be successful, make profits and perhaps grow.
What effect do suppliers have on a business?
The quality of the stock/materials/goods they supply.
The reliability of supply - delivering the right quantities at the right time.
What effect does the government have on a business?
Changing taxation levels.
Giving grants to businesses.
Changing laws.
Spending - on roads/buildings etc, increases business activity.
