1.5.1 Business stakeholders Flashcards
What is a stakeholder?
Any person why has an interest in a business
Any person who is affected by the activities of a business
Any person who works for a business
Any person supplies a business
Any person who competes with a business
Any person who lived in the neighbourhood of a business
Pressure groups who campaign against the activities of a business
Any person who buys from a business or is the end user of its products
What are internal stakeholders?
People inside the business such as owners, management and employees
What are external stakeholders?
People outside the business such as customers suppliers and banks
Who are internal stakeholders and what do they want?
Owners - Profit, a good reputation and to grow the business
Managers - Good salaries, recognition for achieving targets and career success
Employees - Good working conditions, decent wage and job security
Who are the external stakeholders and what do they want?
Shareholders - Return on their investment in dividend payouts
Suppliers - Sell their products at the highest price and be paid on time
Customers - Buy quality and reliable goods and services at the lowest price
Local community - Wants local investment, jobs and limited pollution
Government - Low unemployment, competitive markets, pay taxes, law-abiding
Banks - Lend money without risk of losing it
Pressure groups - Ensure they are acting ethically and are not polluting the environment
What are the influence of stakeholders?
Owners make decisions that can influence the success of their business
Employees providing excellent customer service, which boosts reputation. Contrasts to bad customer service
Suppliers by supplying it with goods of excellent quality, which can lead o repeat purchases by customers, contrasts with bad or dangerous quality
What causes stakeholder conflict?
Different aims causing them to pull in different directions
Why does stakeholder conflict happen?
Stakeholders do not always make decisions which are best for the business instead they often aim to satisfy their own interest
