Stakeholders Flashcards
Who are external stakeholders?
Groups outside of a business who have an interest in the business’s performance
Who are internal stakeholders?
Groups inside of a business who have an interest in the business’s performance
What stake do suppliers have in a business?
They would want to know if a business is successful in order for them to continue their relationship with that business
What stake do customers have in a business?
Customers may be more loyal to a brand or business and be motivated to spend more money there if they feel the business is faltering.
What stake do Shareholders have in a business
Shareholders have a direct benefit from the success of a business which is the value of the dividends they are paid.
What stake do employees have in a business
If the business is doing well employees may seek pay rises or promotions. They would also want to know their job is secure and they can maintain their income.
What stake do competitors have in a business
They may want to see what strategies or products have lead to success or failure in other businesses and either offer alternatives or avoid the same pitfalls.
What stake does the government have in a business
A business’s success benefits the economy and generates more taxable income for the government to take.
What stake does the local community have in a business?
Success for a local business can drive up tourism and increase government spending in the area. Locals may also be interested in the aesthetics of a business so that it suits the rest of the area.
