Stakeholders

Question 1

What is a stakeholder

Answer 1

A person who is affected by how a business is run.

Question 2

Nine stakeholders

Answer 2

Entrepreneur
Investor
Manager
Employee
Employer
Interest groups
Producer 
Consumer 
Service provider

Question 3

Entrepreneur

Answer 3

Someone who spots an opportunity, a gap in the market, and takes the initiative to set up a business for profit.

Question 4

What risks do entrepreneurs take?

Answer 4

Financial

Personal

Question 5

Entrepreneur example

Answer 5

Mary-Ann O’Brien -Lily O’Brien’s Chocolate

Question 6

Investor

Answer 6

Gives capital to entrepreneur for a return on investment.

Question 7

Debt capital

Answer 7

Investor lends money for a return on investment eg AIB Loan to Mary Ann O’Brien.

Question 8

Equity Finance

Answer 8

Investor gives capital for a share in the business

Eg Anita Roddick sold half share of Body Shop for £5000

Question 9

Employer

Answer 9

Hires others to work for them. Reward employees either financially (commission, bonus) or non-financially (holidays)
Aer Lingus.

Question 10

Employee

Answer 10

Works for an employer for a wage. Carry out essential tasks. Intrapreneur give ideas to employer eg Microsoft employees came up with XBox

Question 11

Producer

Answer 11

Makes finished products, take raw materials and use manufacturing process to turn into finished products for consumers.
Cadbury’s

Question 12

Consumer

Answer 12

Buys goods and services for their own personal use.

Provide entrepreneur with a market for product- profit

Question 13

Manager

Answer 13

Runs the business to achieve its objectives. Uses resources to make the business a success.
Michael O’Leary- Ryanair (Chief exec. Officer)

Question 14

Service provider

Answer 14

Tertiary sector
Offers helpful supports to entrepreneur. Do helpful things.
Bank enables entrepreneurs to deposit money.

Question 15

Interest groups

Answer 15

Group of people who come together and pool resources to pressure decision makers into helping them achieve their goal.
Lobbying is a tactic
Greenpeace

Question 16

Lobbying

Answer 16

Putting pressure on decision makers by meeting with and contacting them to persuade them to make their decision.

Question 17

Four relationships between stakeholders

Answer 17

Co-operative
Dependent
Dynamic
Competitive

Question 18

Co-operative rel.

Answer 18

Parties have same objective, work together. Win win (means better results)
Pay cut during recession to help employers survive turndown and lowered costs, helped employees keep jobs

Question 19

Competitive

Answer 19

Two parties compete for market majority, one wants more success. Win lose as they become rivals.
Tayto and Walkers (lower prices)

Question 20

Dependent

Answer 20

Parties need each other, cannot achieve goals alone. Rely on each other.
Consumers and producers

Question 21

Dynamic

Answer 21

Constantly changing, sometimes competitive or co-operative

Rose of tralee, rival businesses may work together to bring more revenue to boost sales