1.5.1 Business Stakeholders

Question 1

What are Stakeholders

Answer 1

-They are people who have a interest in the business

Question 2

Who could be a Stakeholder

Answer 2

-Employees, Manager’s ,owners
-Suppliers , The local community,Customers

Question 3

who could be a internal Stakeholder

Answer 3

-Employees, Manager’s ,owners

Question 4

who could be a external Stakeholder

Answer 4

-Suppliers , The local community,Customers

Question 5

Name 4 ways a Stakeholders could be at conflict

Answer 5

• Increasing prices -this means customers won’t be happy
• Switching to Ethical Suppliers-This means Suppliers wont Be Happy
• Introduce automation -This means that employees won’t be happy
• increase dividends- This means that employees won’t be happy

Question 6

why could increasing prices be bad for the business

Answer 6

• Because Then customers would buy from a cheaper business possibly competitors

Question 7

Why would switching to ethical supplers be bad for the bussiness

Answer 7

• Because suppliers wont be happy and wont supply to that business again

Question 8

Explain How Stakeholders Impact Business Activity (3 Marker)

Answer 8

Employees may refuse to co-operate and work to rule (P) They will often behave like this if they are not happy with suggested changes (S) This will lower the businesses levels of productivity (S) As a result the businesses unit costs will increase (S)

Question 9

Explain a Possible Conflict With Stakeholder Groups (3 Marker)

Answer 9

Employees and owners may disagree about working practices in the business (P) This will lead to lower productivity (S) and therefore increased costs of production within the business (S) This could lead to lower profits in the business (1).