Chapter 1 STAKEHOLDERS Flashcards
What is a Stakeholder?
Stakeholder is a person or a group of people interested in the business
For example, the owner of the business
Who are the Main Stakeholders?
- Owners or Shareholders
- Creditors
- Employees
- Creditors
- Customers
- Local Community
- Suppliers
Why are the following stakeholders interested in the success of the business:
Owners and customers
Customers
-Quality of product gets better
-May charge less for the product if the expand
-Sustainable and long running business for their product
-more range of products
-better facilities, service or staff
Owner
-profit after tax belongs to them, more money if business is successful
-want it to be profitable
-expansion of business=more profit
Why are the following stakeholders interested in the success of the business:
Employees and the local community
Employees
- want a secure job
- better pay/bonuses
- sense of achievement if business succeeds
The Local Community
- More employment for the area
- additional resources for the are if they expand
- business may sponsor other organisations
Why are the following stakeholders interested in the success of the business
Suppliers and creditors
Suppliers
- They may never receive their money if the business fails
- More business and repeat orders
Creditors
- If the business fails, they won’t receive their money
- if it’s doing well they could get more, larger loans
What is Revenue?
Money coming in from sales
What is Debtors?
People who owe you money
What is Profit?
how much you make after costs
Profit=Revenue-Costs
What impact would Good Customer Service have on the company
- Good Reputation
- Increased revenue
- Repeat sales
What impact would Bad Customer Service have on the company?
- Bad reputation
- Loss of revenue
- Loss of target market
