Stakeholders Flashcards
What are examples of stakeholders?
Employees
Customers
Owners/managers
Suppliers
Government
What is conflict of interest?
Two stakeholders both cannot get what they want at the same time which can cause conflict.
What are some conflicting stakeholders?
Employees vs owners/managers
Customers vs owners/managers
Suppliers vs owners/managers
Government vs owners/managers
What’s an example of conflict that can occur between employees and owners/managers?
Employees want a pay rise, whereas owners want to maximise profits. If employees get a pay rise it will lower the amount of profits the owner will receive.
What’s an example of conflict that can occur between customers and owners/managers?
Customers want low prices and value for money, whereas owners want to raise prices to maximise profits and meet their own objectives. Low prices and high prices can’t both happen so the businesses and customers ‘meet in the middle’ known as the equilibrium price.
What’s an example of conflict that can occur between suppliers and owners/managers?
Suppliers want to be paid as soon as possible ideally in cash, whereas the owners want trade credit to keep good cash flow in the business. Suppliers and owners can also disagree on the prices of products, discounts, quality of supplies, delivery and so on.
What’s an example of conflict that can occur between government and owners/managers?
Governments may want to introduce legislation to improve society, however owners may disagree with the legislation as it will impact negatively on their business. For example, the government raising the minimum wage will lower the profits of a business as wage costs will increase.
What is interdependence of stakeholders?
When stakeholders need to work together if the business is to succeed.
What are some interdependent stakeholders?
Owners/managers and governments
Owners/managers and suppliers
Owners/managers and customers
Owners and employees
Managers and employees
What’s an example of interdependency between owners/managers and governments?
Owners/managers need governments to make good decisions, such as lowering taxes to improve the spending power of customers and therefore sales, while governments need owners to create jobs.
What’s an example of interdependency between owners/managers and suppliers?
Managers need supplier to provide good quality raw materials to improve the quality of the finished product, while suppliers need managers to keep buying from them and keep them in business.
What’s an example of interdependency between owners/managers and customers?
Owners need customers to buy their products and customers need a good quality of product and customer service from the owners of the business.
What’s an example of interdependency between owners and employees?
Owners need employees to perform their best to increase sales and profits through work rate or customer service, while employees need owners to make good decisions to keep the business profitable and their jobs safe.
What’s an example of interdependency between managers and employees?
Employees and managers need to work together to help the business to succeed in order to keep their jobs secure.
