influences on business decisions Flashcards
what are stakeholders
are groups that are influenced by and influence the operations of a business
name some type of stakeholders
Customers. Employees. ... Governments. ... Investors and shareholders. ... Local communities. ... Suppliers and vendors.
what is the stake holder approach to running a business/making decisions
when making decisions a business meets the needs of all stakeholder groups to ensure continued positive relationships with the business
what are shareholders
A shareholder is a party that legally owns shares of a company’s stock.
what is the shareholder approach
concerning business decisions around the shareholders needs. E.g by placing increasing value, through increased profit and share price, above all other responsibilities. Therefore under this stakeholders can have their interests ignored
stakeholder objectives: staff
growth (preferably organic), new tech products, not processes and rising profit (if profit sharing takes place)
stakeholder objectives: managers
growth (in/organic), new products and processes, rising profits (if bonuses paid)
stakeholder objectives: shareholders
rising profits in short and long term
stakeholder objectives: suppliers
growth
stakeholder objectives: customers
quality of product/service, innovative new products
stakeholder objectives: bankers
stable profits
stakeholder objectives: local residents
clean, green production with few deliveries or dispatches
what does keeping stakeholders happy likely lead to
sustained profits
what is the issue with the shareholder approach
businesses can be forced into short-term needs of shareholders to the detriment of the businesses long-term success.
E.g treating suppliers poorly can boost immediate cash flow but does not create relationship where they will make emergency deliveries
