Stakeholder Objectives

Question 1

Stakeholder : definition

Answer 1

Individuals or groups who have a genuine interest in a particular business and will be affected by or can affect the activities undertaken by that business.

Question 2

Difference between stakeholder vs shareholders :

Answer 2

Have interest in business vs own the business

May work ortherwise interact with the business vs benefit directly from increases in the value of the business

Question 3

Internal stakeholder :

Answer 3

People who work for the business. This means they are inside the business and involved in it daily.

Question 4

External stakeholders :

Answer 4

Those who do not work for the business, and are not involved in the dayto day running of the business. They are outside the business.

Question 5

Stakeholder interest and influence : owners

Answer 5

Interest : profits and image of business

Influence : election of directors, strategic directions, financial support

Question 6

Stakeholder interest and influence :

Answer 6

Interest : pay, job satisfaction, working conditions, job security, promotion, training, pension, holiday pay, contract of employment.
Influence : customer service, productivity, efficiency, absenteeism, staff turnover, leave, industrial action.

Question 7

Stakeholder interest and influence: manager

Answer 7

Interest : achieve success, maintain control over employees, positive image of their department, bonuses, fringe benefits.
Influence : show leadership, solve problems, make key decisions, motivate workers, control resources, accountable.

Question 8

Stakeholder interests and influence : suppliers

Answer 8

Interest: paid on time, loyal customers, business success, growth
Influence: provide raw materials, require prompt delivery, prices, reliability, discounts

Question 9

Stakeholder interest and influence : government

Answer 9

Interest : successful business, provides employment, pay taxes, contribute to economy, contribute to image of uk.
Influence : offer grants, have to follow laws and legislation, taxes, political decisions.

Question 10

Stakeholder interest and influence : customers

Answer 10

Interests : high quality products, customer service, good value with low prices, payment options, safe products, socially responsible
Influence : survival, decide to no longer support, provide sales, reviews, recommendations, changing tastes and trends

Question 11

Stakeholder interests and influence : competitors

Answer 11

Interests : need to beat firm, need to match prices, competitive advantage, research and development, impact market share
Influence : steal customers, higher market share, set prices, continuous innovation,

Question 12

Stakeholder interests and influence : creditors

Answer 12

Interests : successful business, maximum sales, profitability and liquidity, security of debt
Influence : paid promptly, interest charged, agreement to lend finance required

Question 13

Stakeholder interest and influence : local community

Answer 13

Interests : employment, noise pollution, provide products, environmental impact, support local charity
Influence : complaints, possible customers

Question 14

Stakeholder interests and influence : pressure groups

Answer 14

Interests : to be listened to, ensure group focus is considered, financial stability
Influence : get firm in trouble, cause issues, affect number of customers, protests, time and money

Question 15

Stakeholder interest and influence : trade unions

Answer 15

Interests: working conditions, good payments, time off, job security
Influence : demand employees get treated fairly, industrial actions, petitions.