5 - Stakeholders Flashcards
Name 7 different stakeholders
- workers
- managers
- owners
- customers
- suppliers
- government
- local community
What is a stakeholder
Individuals or groups with an interest in a business or someone who is affected by a business
Stakeholders have different …………. And ………….
Needs and wants
what are the interests of the employer
- Increase and maximise profits
- keeping employees pay stable and not offer big pay rises
- amount being paid to suppliers
- take a interest in staff to increase motivation
What are the interests of employees
- Workers want to be paid more money
- are working conditions good ( warm in winter, have a kitchen )
- are there promotions available or benefits
- extra training available
- are they looked after
What are the interest of customers
- the quality of the product or service
- the range and choice of products
- customer service received from staff
- after sales service and guarantees
- the price of the product
What are the interests of suppliers
- is the business they are selling to able to pay for goods purchased
- will they pay within the specified time period or keep them waiting
- will they become a regular customer and place larger orders
- does the business trade ethically and have a good reputation.
What are the interests of shareholders
- hope they receive a good dividend payment
- future plans of the business
- they were able to buy shares at low price, so hope to be able to resale value will increase so they can be sold on again at a profit
What are the interests of the local community
- jobs available from the business
- sponsor local events
- they don’t want pollution or congestion
- small businesses in the local community could lose customers if they are building something better e.g. Corner shop and new supermarket
What are pressure groups ( they are a stakeholder )
- pressure groups are organisations that try to affect the way the business is run e.g trade unions for employees
What are the interests of pressure groups
- better pay
- training
- health and safety
- shorter working hours
- involvement in decision making
What are the interests of financiers
- focus on the businesses ability to repay the loan
- repay debts
- how the finance is going to be used (ethically?)
What could be the possible conflict between different stakeholders, supplier and business
The supplier wants to sell their raw material at a high price, but the business wants to buy them at a low price
What could be the possible conflict between different stakeholders, employees and employers
Employees may ask for a pay increase. The employers do not want to pay this as it will increase expenditure and reduce profit.
If an agreement cannot be reached then employees will reach out to trade unions to negotiate with employers
What could be the possible conflict between different stakeholders, business and shareholders
The employers may wish to use any profits to expand the business, if the company has shareholders, they may want all the profits in form of dividends. This conflict can effect the future of the business as they could possibly leave.
What are the consequences of businesses not listening to stakeholder groups between employees and employers
Employees may go on strike if negotiations over pay have broken down. The business will therefore not produce and goods or provide a service and will not make any sales.
If employees conditions are poor they may choose to leave the business.
What are the consequences of businesses not listening to stakeholder groups between business and pressure groups
If pressure groups demonstrate outside the business, customers may be put off from using the business, therefore could be bad publicity and cause a decrease in sales
What are the consequences of businesses not listening to stakeholder groups between business and government
If the business ignores the government, legal action can be taken. This could be expensive both financially and in terms of negative media coverage.
Name 2 internal stakeholders
- Employees
2. Owners/shareholders
Name 4 external stakeholders
- Suppliers
- Local community
- pressure group
- Government
