Booklet 4: Stakeholder Groups Flashcards
What is a Stakeholder Group?
A Stakeholder is a person, group or organisation that has an interest or concern in a business entity.
What is an internal stakeholder and who are they?
Internal Stakeholders- exist within the business. (e.g. business owners, shareholders, employees, managers).
What is an external stakeholder and who are they?
External Stakeholders- exist outside the business. (e.g. customers, suppliers, creditors, lenders, pressure groups, government).
Explain a Business Owners Stakeholder interest in the business.
- Successful business with increasing profits.
2. Opportunities to grow the business.
Explain a Staff Stakeholder’s interest in the business.
- Job security
- Good Salaries/ wages.
- Good Working conditions
- Opportunites for promotion.
Explain a supplier’s Stakeholder’s interest in the business.
- Ensure payment is on time.
- Regular orders (long-term contracts)
- Fair Prices
- Growth of purchasing.
Explain a customer’s Stakeholder’s interest in the business.
- High-quality goods/ services.
- Reliable supply of goods.
- Fair prices for goods/ services.
- Good customer service.
Explain a Creditors Stakeholder’s interest in the business.
- Full and regular payments at agreed dates.
2. Profitable business to ensure money owed can be paid back.
Explain a Lenders Stakeholder’s interest in the business.
- Valuable asset base, can be used as financial security.
- Excellent credit rating.
- Repayments paid on time.
Explain a Pressure Groups Stakeholder’s interest in the business.
- They want to be listened to.
- Ensure fair treatment for employees.
- Challenge the behaviour of a business.
Explain a Local Communities Stakeholder’s interest in the business.
- Secure jobs in the local area and contribute to the local economy.
- Avoidance of noise and air pollution.
- Provision of facilities for the local community.
Explain a Government Stakeholder’s interest in the business.
- Create employment opportunities for local people, to improve the economy.
- Be successful in order to pay taxes.
- Uphold their corporate social responsibility. (e.g. payment of minimum wages).
Explain a Shareholders Stakeholder’s interest in the business.
- Successful business to ensure steady return on investment in dividends.
- Share price increasing.
- Profit levels increasing.
Advantages of the use of Social Media for Business and Stakeholder Groups.
- Increases consumer awareness.
- Reduced costs for the business (cheaper to advertise on social media).
- It can help aid market research (through the use of surveys).
- Customers can get in contact with the business very easily through social media platforms.
- Viral Marketing.
Disadvantages of the use of Social Media for Business and Stakeholder Groups.
- Cost- social media requires extensive IT Support.
- Privacy amd security concerns- fear of personal data being leaked.
- Stakeholders can leave negative feedback on a business’ social media platform, affecting the corporate image of the business.
- Doesn’t reach everyone (e.g. elderly customers).