Stakeholders

Question 1

What is a stakeholder?

Answer 1

Is an individual or group that effects business activity. They can want different things out of the business therefore conflicts can occur.

Question 2

Who are the stakeholders?

Answer 2

-shareholders
-owners/directors
-employees/workers
-customers
-suppliers
-government
-local community

Question 3

How do sharholders impact a business?

Answer 3

They have the right to voting within the business, they can also restrict things

Question 4

How do directors and managers impact a business?

Answer 4

-set goals
-create strategies
-know how to get the best out of the team
-organise communication

Question 5

How do employees impact the business?

Answer 5

• increase/ decrease of productivity
• they are fce of the company, they meet the customers
  -can delegate tasks

Question 6

How do customers impact business?

Answer 6

-sales
-provide feedback, can result in product becoming improved
-can expand into new markets which customers desire

Question 7

How do suppliers impact business?

Answer 7

-influence price
-quality of goods is caused by suppliers
-delivery, are they reliable?
-reputation of the business, are they ethically sourced?

Question 8

How do the government impact business?

Answer 8

• legal action, fines
• if these actions are taken it can damage business reputation

Question 9

How does the local community impact business?

Answer 9

• infastructure
• environment
• job availability
  -new product or service

Question 10

Identify three stakeholders apart from Andrew and explain the impact on each
stakeholder if the business were to fail.

Answer 10

• Bank – if Andrew has a loan / mortgage and his business fails he may not be able to pay
  back money borrowed.
• Employees may lose their jobs and may not get other work. They may have to seek
  alternative employment.
• Businesses that supply Andrew with raw materials and equipment will have to find
  another client and may suffer financially.
• Government will not benefit from tax revenue and may have to pay benefits to
  employees who lose their jobs.
• Supermarket may have to find another supplier – may have to pay higher prices or may
  find suppliers not as reliable as Andrew. Other customers who buy directly from the farm.
• Local community may lose out – unemployment levels and deprivation.
• Investors may also lose out – little or no return on investment.
• Competitors may benefit as customers will still need to purchase milk