Stakeholders

Question 1

what is a stakeholder?

Answer 1

A stakeholder Is an individual or group of people who have an interest in the success of an organisation.
Stakeholder do not have to be financially involved with a business [do not mix them up with shareholders], they just have to be remotely concerned with the business.

Question 2

what can a stakeholder be?

Answer 2

Stakeholders can be internal (from within the organisation) and external (come from out with the organisation).

Question 3

what kind of people are interested in stakeholders?

Answer 3

• Employees
• Customers
• Owners/shareholders
• Managers
• Local community
• Taxpayer
• Local/national government
• Suppliers

Question 4

what is a stakeholders influence/interest?

Answer 4

As well as being interested in a business, stakeholders can also influence a business by the decision/actions they take. This can have a positive or a negative effect on the business.

Question 5

what is the shareholders interest in a business?

Answer 5

Interested in high profits to receive high dividends.

Question 6

what is the shareholders influence on a business?

Answer 6

Can invest more/less money depending on dividend returns.

Question 7

what is the managers interest in a business?

Answer 7

Interested that the organisation does well so that they receive yearly bonus.

Question 8

what is the managers influence on a business?

Answer 8

Have control over a lot of decisions that can affect business success.

Question 9

what is the employees interest in a business?

Answer 9

Interested in job security, good working conditions and fair play.

Question 10

what is the employees influence on a business?

Answer 10

Can take industrial action if unhappy. Business will lose money while this takes place.

Question 11

what is the customers interest in a business?

Answer 11

Interested in getting high quality products at fair prices.

Question 12

what is the customers influence on a business?

Answer 12

Can take their custom elsewhere and can spread good/bad reputation.

Question 13

Shareholder Vs Customers conflict?

Answer 13

shareholders want to maximise profits. Customers want a quality products for low prices.

Question 14

Shareholder Vs Employees conflict?

Answer 14

Shareholders want to pay as low a wage as possible so that profit is high whereas employees want high wages for their work.

Question 15

Shareholders Vs Suppliers conflict?

Answer 15

Suppliers want to be paid as soon as possible, whereas shareholders want to buy on credit to ensure good cash flow.

Question 16

Why does a stakeholder need another stakeholder?

Answer 16

One cannot survive without the other, so they need to work together if the business is to succeed. They can rely on one another to achieve their interests. This is known as interdependence

Question 17

owners & suppliers interdependence?

Answer 17

Managers need supplies to provide high quality materials to ensure a high-quality end product. Suppliers need managers to keep buying from them to keep them in business.

Question 18

owners & employees interdependence?

Answer 18

Owners need employees to perform their best to increase sales and profits through work rate and customer service. Employees need owners to make good decisions to keep the business profitable and jobs safe.

Question 19

Owners & Customers interdependence?

Answer 19

Owners need customers to buy them their product and customers need good quality products and customers service from the owners of the business.

Question 20

managers & employees interdependence?

Answer 20

Employees and managers need to work together to help the business succeed in order to keep their job secure.