2.5 - Stakeholders

Question 1

What is a Stakeholder?

Answer 1

Anyone with an interest in a business (this can be individuals, groups or organisations that are affected by the activity of the business)

Question 2

What are the different types of Stakeholders?

Answer 2

Internal Stakeholders

External Stakeholders

Question 3

What are the key concepts of internal and external stakeholders?

Answer 3

Underlying conflicts
Communication is key
Some are more equal than others
Cannot meet everyone's objectives
Keep as many as possible happy

Question 4

Give examples of Internal Stakeholders

Answer 4

Owners/shareholders
Managers
Employees

Question 5

Describe what different Internal Stakeholders would expect

Answer 5

Owners/shareholders:
They want return on their investment (dividend and share price to go up)

Managers:
They want high salaries (bonuses and share price to go up
They want career prospects

Employees:
Fair employment and contracts
Fair salaries on wages
Good working conditions
Opportunities for development
To be consulted when changes are required
However, if there is conflict, employees can leave and become demotivated or strike

Question 6

Give examples of External Stakeholders

Answer 6

Customers
The community
Suppliers
Banks
Government

Question 7

Describe what different External Stakeholders would expect

Answer 7

Customers:
Quality product/service
Fair price
Good service
Respect of consumer law
However if there is conflict with customer expectations they can switch competitors and use social networks and damage business reputation

The Community:
Respect of environment
Job opportunities
However if there is conflict with community expectations, local residents can form a petition

Suppliers:
Fair contract
To be paid outcome
To be paid a fair price
Repeat orders

Banks:
Loans to be paid back as and when agreed

Government:
Obedience to laws (employment and consumer laws)
Payment of taxes: VAT and corporation tax