Stakeholders Flashcards
Who are stakeholders?
Stakeholders are people with an interest and influence in the business
Give some examples of internal shareholders
Shareholders/owners
Employees
Managers
Give some examples of external stakeholders
Suppliers Customers Government Trade unions Banks Local community (people that live near the business)
What does each stakeholder want?
OWNER: as much dividend as possible (high profit)
SUPPLIER: paid quickly, good price for supplies and a regular order from business
BANK: loans to be paid back on time and in full, as much interest
EMPLOYEES: good pay and good working conditions
CUSTOMERS: high quality products, low price, long opening hours
LOCAL COMMUNITY: no noise, good environment, no traffic
GOVERNMENT: fair pay, good working conditions, provide jobs and tax
MANAGERS: good salary/bonus, cut costs, manage cash flow
TRADE UNION: negotiate Hugh wages for staff
What are some stakeholder conflicts which could arise?
Shareholders want high profits whereas suppliers want good pay (redundancy profits).
Shareholders want high profits whereas trade unions want high wages for staff.
Shareholders want high profits whereas customers want low pricing.
Shareholders want as much dividend whereas the bank want as much interest.
Shareholders want high profits whereas managers want high salaries.
Shareholders rely on employees to work long hours whereas employees want reasonable hours.
Employees want to have a secure job whereas managers want to cuts costs.
Employees want good wages whereas shareholders want high profit.
Employees want job security whereas mangers want employees on zero hour contracts.
The local community want want to congestion in traffic whereas suppliers want regular orders from the business.
The local community want little distribution whereas shareholders whereas shareholders want loads of distribution.
The government want high taxes whereas shareholders want high profits.
Customers want long opening opening hours whereas the local community want no distribution in the evenings.
Customers want long opening hours whereas employees want suitable working hours.
Customers want to pay low prices whereas managers want to charge high prices.
Suppliers want to be paid quickly where (shirt trade credit period) whereas shareholders/managers want longer to pay.
Suppliers want short trade credit period whereas managers want a long trade credit period.
What’s is stakeholder inter-dependance?
Where two stakeholders need each other
Give some examples of stakeholder inter-dependence.
Employees rely on customers to come to the business And customers rely on employees to provide a good service.
Manager rely on employees to work hard and employees rely on them to provide a good working environment.
Managers rely on employees
Banks rely on managers/shareholders to pay back loans on time with interest and they rely on banks to give them loans.
Shareholders/managers rely on suppliers to pay for took and suppliers need shareholders/managers for stock and good offers.
Customers rely on shareholders for good quality products no shareholders rely on customers to pay high prices for products-put money into business.
The local community rely on the business to minimise distribution eg deliveries and the business rely on the community to support the business (not to protest).
