LO5- Understand The Relationship Between Businesses And Stakeholder Flashcards
What is a stakeholder?
An individual or group who has an interest in a business. They may be directly affected by the activities of the business
Difference between internal and external stakeholders?
Internal – An individual or group who are involved in the business directly by being or representing members of the workforce
External – An individual or group who links to the business
Name internal stakeholders.
Employees, manager, shareholders and owner or founder
Name external stakeholders
Customers, supplier, financial businesses, local residents, community, local and central government, trade unions, shareholders, pressure groups.
What is meant by stakeholder objectives?
What stakeholders aim to achieve
What does stakeholder analysis do?
It can identify the needs and wants of the stakeholders. This could help a business to focus on different elements of the stakeholder to understand them better.
What does conflict resolution mean?
The methods a business may implement to resolve any major issues that affect the way in which business is performed.
What is the trade union?
Trade union ensure that workers are treated fairly and work in the right conditions.
Why can stakeholder disagree?
Each stakeholder may look for something which directly impacts another stakeholder
How can stakeholders attempt to alter business behaviour should it affect them negatively?
Protesting- suppliers, pressure groups, employees
Boycotts- customers, pressure groups
Negatively publicity- all stakeholders
What does privatisation mean?
The transfer from a business in the public ownership and control, to private ownership and control.
How would different stakeholders alter their business behaviour depending on the stakeholder group?
- be concerned about environmental impact of the organisation on the local countryside
- want the business to expand to improve its economic prospect
- want to make the organisation’s manufacturing processes more cost efficient
What are the benefits of meeting stakeholders needs?
Gaining better understanding of each objective
Stakeholder can have access to better contacts that will help the business
You can listen to their thoughts and feelings about the business
What are the drawbacks of meeting stakeholders needs?
Can take time and money
Stakeholder can get annoyed which will distract you from the business
