Stakeholder objectives A2 1

Question 1

what is a stakeholder objective

Answer 1

This is a goal of a particular stakeholder group eg; staff might have the goal of security of employment

Question 2

what are stakeholders

Answer 2

these are groups and individuals that may be affected by or have an effect on the activities and decision-making of a business

Question 3

what are the key stakeholder groups

Answer 3

• owners
  -staff
  -competitors
  -suppliers
  -creditors
  -pressure groups
  -local communities
  -government

Question 4

what are pressure groups

Answer 4

a pressure group is an organisation that tries to influence government policy or business activity in the interest of a particular cause

Question 5

what are owners objectives

Answer 5

• They have an objective to secure growth for the business,
• earn profit
• earn a return on the funds invested in their business
• build an excellent reputation and corporate image

Question 6

wht are staff objectives

Answer 6

• they have an objective of security of employment,
• increased wages/benefits and ability of business to meet corporate social responsibilities.
• while they effect reliability and quality.
• younger staff wont care about benefits such as healthcare.

Question 7

what are customer objectives

Answer 7

• excellent business reputation,
• excellent quality of products/services with the business having an ability to meet corporate social responsibilities.
• they have an effect on reviews

Question 8

what are suppliers objectives

Answer 8

• financial stability of business and security of future workload. they have an effect on quality, quantity.

Question 9

what are creditors objectives (anyone the business owes money to eg bank and creditors)

Answer 9

• financial stability of the business,
• security of the debt,
• receipt of payment in a timely matter.

Question 10

what are lenders objectives

Answer 10

• financial stability of the business,
• low financial risk,
• security of debt and repay in a timely fashion

Question 11

what are pressure group objectives

Answer 11

• concerned with aspects of business activity that directly impact their cause eg; environmental,
• financial stability of the business,
• collaboration with management to seek resolution to problems

Question 12

what are local communities objectives

Answer 12

• growth prospects of the business,
• financial stability of the business

Question 13

what are government objectives

Answer 13

• general prosperity of business
• benefits local community
• comply with legislation (working conditions, minimum wage.

Question 14

why does conflict arise between stakeholders

Answer 14

conflict arises when two or more stakeholders differ regarding the outcome of a specific business objective or the approach taken to achieve the outcome

Question 15

why would management conflict with employees

Answer 15

• Lack of training due to automation
• Demotivated due to non-financial benefits
• Lack of benefits to cut on expenses eg; parking

Question 16

what is a stakeholder approach

Answer 16

this is where managers take account of stakeholders needs as part of the decision making process as a way or successfully achieving business objectives. eg: win win

Question 17

how could possible conflict be dealt 1.

Answer 17

• Stakeholder approach
• direct negotiations (each stakeholder at risk of conflict can be collectively bargained)
• Direct action from business managers to remove conflict between groups
• Collab with opposing groups
• Legislative action eg; working conditions. Arbitration (legally bind)

Question 18

how could possible conflict be dealt 2.

Answer 18

• communication to remove “rumour mill”
• Participation
• Ignore

Question 19

what is an internal stakeholder

Answer 19

a group that is closely connected to the business and their needs are likely to have a strong influence on how the business is ran

Question 20

what is an external stakeholder

Answer 20

a group that have a contractual relationship with a business sometimes known as contractual stakeholders

Question 21

what is a shareholder approach

Answer 21

its the primary responsibility of businesses to act in the interest of its owners (shareholders)

Question 22

evaluation

Answer 22

the effectiveness of a conflict strategy will depend on the power/influence of a stakeholder