LO5 - Understand the relationship between businesses and stakeholders

Question 1

Define

Internal Stake Holder

Answer 1

People inside a business which take interest to the business activities

Question 2

Define

External Stake Holder

Answer 2

People outside a business which are affected by the business

Question 3

Examples of who are they and what do they want

Internal

Answer 3

• Owners: maximise profits
• CEO and Directors: growth and achieving goals
• Managers: Improve productivity
• Supervisors: Oversee daily operations
• Assistant: To receive adequate pay
• Trade Union: Employee rights, good working conditions, and fair compensation

Question 4

Examples of who they are and what do they want

External Stake Holders

Answer 4

• Shareholders: Return on Investment
• Customers: High quality product for low price
• Suppliers: Reliable partnership
• Potential Investors: Return on Investment
• Lenders: Repayment security
• Local Community: Low pollution
• Pressure Groups: Push for ethical practices in businesses
• Central and Local Government: High amount of tax

Question 5

5.2 the ways in which stakeholder groups try to alter business behaviour

What does the response a business make to conflict between stakeholders depend on:

Answer 5

• Influence between stakeholders
• Resolution of conflict