Stakeholders - UB Flashcards
1
Q
What is a Stakeholder + examples?
A
A person, group or organisation that has interest or concern in an organisation
Examples: Owners Employees Customers Suppliers Banks Government Local Community
2
Q
What is a Shareholder? (4)
A
- Have a clear financial interest in the performance of a business
- They have invested their own money by purchasing shares on the stock market and expect the company to grow and prosper so that they can get a good return. This means they can sell their shares for a profit.
- Ordinary shareholders are able to exert power at an Annual General Meeting (AGM).
- They are responsible for electing a board of directors to run the company on their behalf
3
Q
What is an employee?
A
- Have a financial interest in the business as their salaries and job security depend on the business doing well.
- They are also seeking job satisfaction, opportunities for promotion and good working conditions
- Employees are responsible for the businesses outputs and services and if the feel undervalued, stressed or underpaid outputs can be of poor quality, morale is low and staff movement will increase resulting in a high staff turnover
- Workers are able to put pressure on an organisation by taking industrial action such as work to rule, go slow or strike.
4
Q
What is a Customer? (5)
A
- Vital to the survival of the business since they purchase the goods and services which provide the business which the majority of its revenue.
- Customers essentially want high quality products at the lowest possible price.
- They also expect to receive good customer care and a high standard of after sales service.
It is therefor vital for a business to find out exactly what the needs of the customers are and produce a product or service to meet these - Customer loyalty is of paramount importance to a business
- Positive and negative feedback from customers to family and friends also has a huge impact on business
5
Q
What is a Supplier? (5)
A
- Without flexible and reliable suppliers they business would be unable to guarantee the necessary high quality raw materials required to produce its output.
- It is important for a business to maintain good relationships with its suppliers so that raw materials can be ordered and delivered at short notice.
- Establishing good relationships with suppliers will also allow the business to negotiate good credit terms and discounts.
- Suppliers will want a business to be successful to ensure prompt payment and return orders.
- Suppliers can influence how profitable a business is by changing the amount that they charge for raw materials provided and they can also change credit terms or withdraw trade and cash discounts.
6
Q
What is the Government? (5)
A
- Business pay taxes to both central and local government
- Taxes include corporations tax on profit, VAT on sales and business rates to local councils. Changes in Taxes can impact on sales and business expenses
- Governments can introduce legislation such as the minimum wage, Health and Safety at Work Act, alcohol and tobacco regulations which all effect a business.
- Businesses are also effected by government economic policies e.g. interest rates can deter a business from borrowing to finance expansion or replace assets.
- Businesses can benefit from government incentives such as job creation programs and government grants
7
Q
What is an interdependence?
A
Why a stakeholder needs another stakeholder
8
Q
What is a conflict?
A
The disagreements that can occur between different stakeholders
9
Q
Interdependence between Owner and Employees?
A
- Owners needs employees to carry out different tasks and employees need owners to pay their wages
- Owners need employees to be as productive as they can and employees need owners to provide the necessary training
10
Q
Conflict between Owners and Employees?
A
- Owners want to pay as low a wage as possible so that their profit is high whereas employees want high wages for their work
- Owners want employees to work as many hours as they can whereas employees want to work as few hours as possible
11
Q
Interdependence between owner and customers?
A
- Owners need customers to buy products from them to make profit and customers need owners to provide them with the product they want
- Owners need customers to become loyal to increase market share and customers want to rewarded for loyalty
12
Q
Conflicts between owners and customers?
A
- Owners want to make as much profit as possible by charging the highest price they can whereas customers want as low a price as possible
- Owners want to keep costs low by providing the cheapest possible service they can whereas customers want the best possible service
13
Q
Interdependence between employees and customers?
A
Employees need customers to buy from an organisation so that they get paid and customers need employees to provide them with good customer service
14
Q
Conflicts between employees and customers?
A
Employees want customers to spend as much as possible to increase their commission whereas customers want as much discount as possible
15
Q
Interdependence between owners and suppliers?
A
- Owners need suppliers to provide products on time and suppliers need owners to provide them with repeat orders
- Owners need suppliers to provide a quality product at a suitable price to make a profit and suppliers need owners to pay their invoices within an agreed time to prevent cash flow
