role and importance of stakeholders

Question 1

what is a stakeholder?

Answer 1

any individual or group that has an interest in the activities or performance of an organisation

Question 2

what are the 3 main internal stakeholders?

Answer 2

employees
managers
owners

Question 3

what are the 6 main external stakeholders?

Answer 3

suppliers 
society 
government 
creditors 
shareholders
customers

Question 4

why would expanding production be positive for employees?

Answer 4

they may get a pay rise if business becomes more profitable after expansion

Question 5

why might cutting costs be a problem for shareholders?

Answer 5

shares will be worth less if costs are cut and therefore shareholders will get less capital

Question 6

why would raising prices be a positive choice for creditors?

Answer 6

if consumers continue to buy, creditors may be payed back quicker due to more income from the business

Question 7

what’s an advantage of stakeholder mapping?

Answer 7

treat stakeholders accordingly so the business grows

Question 8

what’s a disadvantage of stakeholder mapping?

Answer 8

it’s not hugely detailed or specific

Question 9

what are the 3 internal factors that influence relationships with stakeholders?

Answer 9

business objectives
management and leadership
the size of the business and the legal form

Question 10

what are the 3 external factors that influence relationships with stakeholders?

Answer 10

market conditions
the power of the various groups
government policy

Question 11

what is the partnership approach?

Answer 11

this involves appropriate stakeholders in the decision making process. decisions are jointly made and implemented

Question 12

define stakeholder mapping

Answer 12

this involves placing stakeholders into a matrix with their position dependent on their relative power and interest in relation to a particular project being undertaken by a business