business stake holders Flashcards
what’s a stakeholder
anyone who has an interest in the activities of a business such as its workers, it’s suppliers, the local community and the government
stock exchange
a place where shares in PLCs can be bought and sold
who are the business stakeholders
shareholders (owners)
employees
customers
managers
suppliers
local community
pressure groups
government
impacts of shareholders on business activity
set the aims and strategy for the business
provide funding and investment to start up and expand business
impact of employees on business activity
provide good service, higher sales and profits
impact of customers on business activity
buy products/ services
make recommendations on how to improve
recommend to friends and on socials
impact of managers on business activity
manage employees who do the day to day work of the business
communicate employees needs to senior management
communicate business’s needs to employees
impact of suppliers on business activity
provide business with material needed for product/service
affect the amount of product services that can be produced and sold
impact sales and reputation
impact of local community on business activity
support local business by buying
object to business if it has negative impact to them or environment
how do pressure groups impact business activity
change business’s practices eg delivery times or packaging
improve employee conditions eg health and safety in workplace or fair wages
influence customer opinions of the business and their buying habits
how does government impact business activity
changes amount of tax the business has to pay
passes new laws relating to the business and its industry
promotes diff type of business activity by providing special funding for particular activities eg availability of grants for wind farms has increased the number of businesses installing and operating wind farms
what is a pressure group
a grip of people who join together to try influence businesses or government for a particular cause
how are shareholders affected by business activity
may decide to grow the business and authorise opening new stores.
They will expect to see sales increase over time.
However, opening a new store will cost money,
which may affect profits in the short term and could affect the amount of dividends they will receive.
how are managers affected by business activity
Managers take on additional responsibilities and set new targets. They may have opportunities for career progression, and they could become demotivated if they are not given such opportunities.
how are employees affected by business activity
Employees have increased job security as a business grows.
They could also have opportunities for promotion to new roles.
Some employees could feel resentful if they are not offered opportunities.
how are customers affected by business activity
Customers will benefit from having more choice about where to shop,
but they may remain loyal to existing businesses.
Through good marketing activity by the business, some may be tempted to try the new store.
how are customers affected by business activity
Customers will benefit from having more choice about where to shop,
but they may remain loyal to existing businesses.
Through good marketing activity by the business, some may be tempted to try the new store.
how are suppliers affected by business activity
Suppliers benefit from increased orders to equip and stock the new store,
which might lead to an increase in their profits.
however If they are unable to cope with the extra demand,
there is a risk that the business will use other suppliers.
how is local community affected by business activity
will benefit as a new store is likely to bring new jobs.
However, they may be unhappy with increased traffic or noise
how are pressure groups affected by business activity
may protest against the new store if they feel their cause is adversely affected
eg if the store would increase pollution.
This could deter other businesses from coming to the area.
how is the government affected by business activity
may be pleased to see new jobs being created
may expect to see increases in tax revenues as a result.
However, other businesses could lose customers,
which would reduce their profits and the tax they have to pay as a result.
