Lesson 5 Flashcards
What is a stakeholder?
A stakeholder is any party that has an interest in a company and can affect or be affected by its operations or performance.
What are internal stakeholders?
Stakeholders within the business, such as owners, employees, and managers.
What are external stakeholders?
Stakeholders outside the business, such as customers, suppliers, contractors, investors, creditors, media, communities, trade unions, government agencies, and associations.
What is the role of an owner in a small business?
To maximize revenue, profit, and long-term value, reduce costs and risks, and develop strategic advantages.
What is a shareholder?
A part-owner of a business who may or may not be involved in daily operations.
Why are employees key stakeholders?
They directly affect outcomes, seek career growth, and are invested in business success.
What responsibilities do employees have?
Work safely, follow rules/laws, maintain confidentiality, and honor contracts.
What is the role of a manager?
Oversee daily operations, make decisions, recruit staff, motivate teams, and drive performance.
Why do managers care about business success?
For job security, promotions, and performance-based bonuses.
How can customers influence a business?
Through purchases, switching brands, feedback, reviews, and word of mouth.
Why are customers vital stakeholders?
They want quality, value for money, and good service, and their loyalty can make or break a business.
Why are suppliers stakeholders?
They rely on regular orders and timely payments, and can impact quality, price, and delivery timelines.
How can suppliers influence a business?
By adjusting prices, credit terms, or quality.
What is a contractor?
An individual or company that provides services to a business (e.g., harvesting, fencing).
How can contractors impact business operations?
Through availability, pricing, and service quality.
What do investors expect from a business?
A return on capital and sustainable success.
How can investors influence a business?
By encouraging or withdrawing support, or pushing for management changes.
How are creditors different from investors?
Creditors are owed money but do not own part of the business.
What is a creditor’s interest in the business?
To ensure it remains solvent and repays debts.
Why are banks stakeholders in a business?
They lend money and expect repayment with interest.
How can banks influence a business?
By adjusting loan approval, interest rates, and repayment terms.
How can the media impact a business?
By influencing public opinion, driving trends, and affecting reputation through reporting.
Why is the media considered a stakeholder?
It can boost or damage business image and consumer behavior.
What do communities expect from local businesses?
Jobs, safe environments, and infrastructure development.
