3.4.2 - Stakeholders vs Shareholders

Question 1

What are Stakeholders

Answer 1

A stakeholder is anyone who has an interest in the business, or who may be affected by the activities of the business

Question 2

What are Shareholders

Answer 2

A shareholder is a person, business or organisation that owns at least one share of a company

A shareholder is a stakeholder of the business

Question 3

Internal Stakeholders

Answer 3

Groups or individuals within an organisation who have an interest in the business

1. Employees
2. Managers
3. Owners

Question 4

External Stakeholders

Answer 4

Groups or individuals outside of an organisation who have an interest in the business

1. Customers
2. Competitors
3. Suppliers
4. Community groups (pressure groups)
5. Unions

Question 5

Stakeholder mapping

Answer 5

Step 1) Identify the stakeholders of the business, these should be internal and external
Step 2) Rank the stakeholder’s power either low, medium or high
Step 3) Rank the stakeholder’s level of interest in the business; low medium or high
Step 4) Rank the stakeholders value to the business; low, medium or high
Step 5) Place in a table titled: Stakeholder , Power over Decisions, Level of Interest in the Business
Step 6) Place the stakeholders in a quadrant of Power over Decisions L/H and Level of Interest L/H

Question 6

Stakeholder mapping

Answer 6

Step 1) Identify the stakeholders of the business, these should be internal and external
Step 2) Rank the stakeholder’s power either low, medium or high
Step 3) Rank the stakeholder’s level of interest in the business; low medium or high
Step 4) Rank the stakeholders value to the business; low, medium or high
Step 5) Place in a table titled: Stakeholder , Power over Decisions, Level of Interest in the Business
Step 6) Place the stakeholders in a quadrant of Power over Decisions L/H and Level of Interest L/H

Question 7

Possible Conflict

Answer 7

Refer to 3.4.3 - Slide 24