3.2.3 understanding the role and importance of stakeholders

Question 1

what is a stakeholder?

Answer 1

anyone who has an interest in a business

Question 2

what is the difference between primary and secondary stakeholders?

Answer 2

primary are affected by the economic transactions of the business whereas secondary do not have a direct financial relationship with the business

Question 3

what are the 6 main stakeholders?

Answer 3

shareholders, employees, customers, suppliers, creditors and the local community

Question 4

what is a stakeholder map?

Answer 4

categorises stakeholders based on power and interest.
low P low I = monitor
low P high I = keep informed
high P low I = keep satisfied
high P high I = manage closely

Question 5

what are some internal influences on a business’s relationship with stakeholders?

Answer 5

business objectives, management style and size/ownership of the business

Question 6

what are some external influences on the business’s relationship with its stakeholders?

Answer 6

market conditions, power of stakeholder groups and government policies

Question 7

how can a business manage its relationship with stakeholders?

Answer 7

clear communication and close consultation