Stakeholders AOS1 Flashcards
Define stakeholders
People/groups that interact in some way with the business and have a vested interest in its activities.
True or false, stakeholders have different interests in the business and the manager must consider this when making decisions?
True
Stakeholders can come from inside the business (internal) and ____ the business ( ________ )
outside ; external
What are the 4 things you must know about a stakeholders?
- How to describe stakeholder.
- Characteristics of stakeholder.
- Interests.
- Conflicts between stakeholder (s)
Outline 3 examples of stakeholders
- Owner
- Manager.
- Employees
- Customer.
- Supplier.
- General community.
Define owner
An individual that invests money in the business in order to make a profit. (Also makes them a shareholder as they own shares or the entirety of the business).
What is the interest of an owner?
- Make money.
- Fulfill social needs.
Define managers
Individuals that run different areas/whole aspects of the business to ensure objectives are met and are responsible for day to day operations.
What are the interests of managers?
- lead and persuade.
- make decisions.
- Take risks to fulfill/make a profit.
Define employees
People who work for the business in exchange for remuneration.
What is the interest of employees?
- Making money.
- Potentially the success of business objectives.
- Helping to make positive contributions to the community.
Define customers
People who purchase goods or services from he business.
What are the interests of customers
- Purchase high quality goods/services.
- Lower prices.
- The business makes a positive contribution to their community.
Define suppliers
Those that supply the business with inputs.
Interest of suppliers
- Develop and maintain relationships with businesses.
- Make money from businesses.
