1.5 - Understanding external influences on business

Question 1

1.5.1 - What is a business stakeholder? Give examples.

Answer 1

A business stakeholder is a person or organisation that has an interest in a business. Ttakeholders have an interest in how the business operates and whether or not it is successful. These can include:

• Owner
• Managers
• Employees
• Suppliers
• Pressure groups
• The government
• Customers/consumers
• Shareholders

Question 2

1.5.1 - Name the three main internal stakeholders explaining their main interest(s)

Answer 2

• Owners: Main goal is profit
• Employees: Main goal is job security and promotions
• Managers: Main goal is extra manager promotions

Question 3

1.5.1 - Name six main external stakeholders explaining their main interest(s)

Answer 3

• Suppliers: To receive payment from the business
• Customers: For the product to be cheap and available
• Shareholders: To receive dividends from their shares
• Local community: No pollution from the business
• The government: To receive taxes from the business
• Pressure groups: For the business to be ethical

Question 4

1.5.3 - When it comes to legislation, what are the three principles of employment law?

Answer 4

• Recruitment: no discrimination in this process on age, race, gender, religion etc.
• The national minimum wage: The minimum amount workers are required to be payed. (£7.20/h 25+ on 4/18)
• Health and safety: A right to work in places where risks to their health and safety are controlled properly and employers who are responsible.

Question 5

1.5.3 - What costs do a business face due to legislation?

Answer 5

Legislation requires businesses to:
- Training staff
- Protection equipment for staff e.g. hairnets or googles
- Cost of paying NMW
These cost higher amounts reducing their profit

Question 6

1.5.3 - What consequences can a business/individual face for not meeting regulation?

Answer 6

• fines
• imprisonment
• disqualification