IGNORE THIS ONE- Topic 3: Stakeholder Objectives (🙅🛑🚨🍑🧧❌🚫⛔) Flashcards
Explain an owner’s stakeholder objectives in a business.
- Secure growth for the business
- Earn profit
- Earn a return on the funds invested in the business e.g. high dividends.
Explain a staff/employees stakehold objectives in a business
- Job security
- Increased wages
- Good working conditions
- Opportunities for promotion
Explain a supplier stakeholder objective in a business
- Fair and reasonable prices are paid for their products.
- Financial stability of the business e.g. payment on time.
- Security of future workload. Frequent and regular orders.
Explain a customers stakehold objectives in a business
- Excellent quality of products/services.
- Fair and reasonable prices.
- High levels of customer service.
Explain a creditors stakehold objectives in a business
- Financial stability of the business.
- Security of the debt.
- Receipt of payments in a timely manner.
Explain a lender’s stakeholder objective in a business.
- Financial stability of the business.
- Low financial risk.
- Security of the debt.
Explain a pressure group’s stakeholder objective in a business.
- Concerned with aspects of the business activities that directly impact their cause.
- Financial stability of the business.
Explain a local communities stakeholder objective in a business.
- Growth prospects of the business.
- Increased opportunities for employment in the area.
- Multiplier effect on the local economy.
- Financial stability of the business.
Explain a government’s stakeholder objective in a business.
- Contribute to the economic growth of the nation.
- The more successful the more cooperation tax that will have to be paid.
- Provide employment for people in the local area. Increases taxes and reduces unemployment.
What are examples of how internal stakeholders influence business objectives/decisions?
- Can threaten industrial action.
- Can threaten to resign.
- Might refuse to relocate.
What are examples of how connected stakeholders influence business objectives/decisions?
- Shareholders have voting rights and can sell shares thus making the company vulnerable to takeover.
- Suppliers can refuse future credit.
- Creditors can refuse credit, charge higher interest rates, take legal action for non-payment and initiate moves to liquidate the company.
- Customers can buy elsewhere.
What are examples of how government and pressure groups influence business objectives/decisions?
The government can influence through taxation, government spending, legal action, regulation, and threatened changes in the law.
Pressure groups:
1. refusing to buy goods.
2. Illegal actions such as sabotage.
3. Publicising unacceptable business activities.
Name the strategies used to deal with conflicting objectives.
Stakeholder approach, Collective bargaining, Direct negotiation, indirect negotiations, promoting collaboration (win-win situation), Legislative action, Government policy.
