Stakeholders - Interdependence of stakeholders

Question 1

What is independence of stakeholders?

Answer 1

This refers to when stakeholders need to work together if the business is to succeed. Some stakeholder groups rely on others to help them achieve their interest.

Question 2

Interdependent stakeholders - owners/managers and the government…

Answer 2

Owners/managers need government to make good decisions, such as lowering taxes to improve the spending power of customers and therefore sales, while government need owners to create jobs.

Question 3

Interdependent stakeholders - owners/managers and suppliers…

Answer 3

Managers need suppliers to provide 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.

Question 4

Interdependent stakeholders - owners/managers and customers…

Answer 4

Owners need customers to buy their products and customers need a good quality of product and customer service from the owner of the business.

Question 5

Interdependent stakeholders - owners and employees…

Answer 5

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.

Question 6

Interdependent stakeholders - managers and employees…

Answer 6

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