Chapter 6 / Stakeholders

Question 1

What is a stakeholder?

Answer 1

Anyone who is affected by the business

Question 2

Who are the Internal Stakeholders?

Answer 2

1) The owners are the most important, they decide what happens to a business.
2) Employees are interested in job security and promotion prospects.
3) Managers have concerns as they are blamed if the company does badly and rewarded if it does well.

Question 3

Who are the External Stakeholders?

Answer 3

1) Customers want high quality at low prices.
2) Suppliers want to be paid a fair price and on time.
3) The local community wants employment and sponsors.
4) Government profits when the business does well.

Question 4

What does a stakeholder map show?

Answer 4

The map helps a business decide how to best manage its stakeholders.

Question 5

How to manage the relationship with stakeholders?

Answer 5

1) Communication
2) Involving them in the decision making

Question 6

Approaches to stakeholder management

Answer 6

• Partnership - making joint decisions
• Participation - involved in the decision
• Consultation - finding out their views
• Push communication - one-way communication
• Pull communication - comms only happen when stakeholders engage