Satekholder Objectives and Strategic Managment

Question 1

What is a Stakeholder?

Answer 1

Is someone who has an interest in the success of a business

Question 2

Why do Stakeholders want a business to succeed?

Answer 2

Because they will benefit from their success

Question 3

What can the objective of stakeholders be used for?

Answer 3

Create a useful framework used to analyze the operations of a business Analyze business objectives and how they can be reached

Question 4

Evaluative points for Stakeholders.

Answer 4

• How much they regard the business as a success - Which stakeholders are the most important - How stakeholders view change

Question 5

Do all stakeholders benefit from a business equally?

Answer 5

NO

Question 6

Stakeholder Objectives that businesses address - Employees?

Answer 6

• Employees who feel valued are more productive - Be less resistant to change - Less likely to leave

Question 7

Stakeholder Objectives that businesses address - Customers

Answer 7

Customers who do not feel exploited and like that standard of the goods/service will become loyal customers

Question 8

Stakeholder Objectives that businesses address - Suppliers

Answer 8

Suppliers who are seen as stakeholder rather than ‘suppliers’ are more likely to be loyal and committed. Useful in the short term (ie. needing a quick delivery)

Question 9

What is a Key Stakeholder?

Answer 9

People with a large amount of influence on a business, they play an important part in decision making.

Question 10

What does Porters Five Forces Model analyse?

Answer 10

Competition in a market

Question 11

Porters Five Forces Model

Answer 11

Question 12

What are Porters 5 Forces?

Answer 12

• Threat of new entrants into a market
• Bargaining power of suppliers
• Bargaining power of consumers
• Threat of substitute products entering a market
• Degree of existing competition in a market

Question 13

Porters 5 Forces Model - How does the threat of new entrants analyse the competitiveness of a market?

Answer 13

• When firms enter an industry they will take a share of the market and increase competitive intensity.
• The greater the barriers to entry the smaller the threat will be (Monopoly markets)

Question 14

Porters 5 Forces Model - How does analysing the bargaining power of suppliers show the competitivenes of a market?

Answer 14

• Suppliers who have a lot of power can force up the price of other businesses products this cuts profits available for these businesses.

Question 15

Porters 5 Forces Model - How does analysing the threat of substitutes show the competitiveness of a market?

Answer 15

• Businesses that fail to keepe up with the latest technology will not have unique products to sell.

Question 16

Porters 5 Forces Model - How does analysing the degree of competitive intensity show how competitive a market is?

Answer 16

• Where there is high competitive intenisty the result will be innovation, price wars and higher spending on promotion which all lower the amount of profits that can be achieved.

Question 17

When is Porters 5 Forces Model used?

Answer 17

When a business is analysing wether it should enter a market.

Question 18

What are some disadvantages with Porters 5 Forces Model?

Answer 18

Not always easy to obtain the required information about the market.