Topic 1.5 Flashcards
Definition: Stakeholder
An individual or group that has an interest in the activities of a business
- Types of stakeholders : stakeholder objectives
- Shareholders and owners: want to ensure the business is successful and are interested in how much profit the business can make
- Managers and employees: want decent wages, good working conditions, job security
- Customers: want a high quality range of products at low prices
- Suppliers: want to receive payments on time, and regular orders
- Types of stakeholders : stakeholder objectives
- Local community: may be looking for work which local businesses can provide, don’t want noise and pollution
- Pressure groups: can influence a business’ decision by creating bad publicity if they don’t listen to the pressure group
- Government: wants businesses to create more jobs in order to raise more money from taxes and save money on benefit payments
Stakeholders conflict of interest
Stakeholders will have conflicting opinions about the business’ objectives
Will often require negotiation and willingness to compromise
Difference between internal and external stakeholders?
Internal operate from within the business, external operate from outside.
Advantages of E - commerce
- reach wider markets
- convenient for consumers: can buy from all over the world, any time
- immediately receive payments
Disadvantages of E - commerce
- more competitions across the world
- have to employ IT specialists
- avoids the need to be located in high streets, where rents and rates are expensive
What do business’ use social media for ?
- sales and marketing
- interacting with customers
- communicating with stakeholders
- cheap and effective
Having regular direct communication in this way can help to build customer relationships, which can help to increase sales
Digital communication tools
- email: quick way to communicate with stakeholders
- mobile apps: let customers know about offers, products, nearest stores
- website: can provide customer service, similar to app
Payment methods
- Online payments
- Chip and PIN
- Contactless payments (Apple Pay)
Faster payment methods mean that businesses can serve more customers -> increase in revenue
Consumer Rights Act 2015
- The product should be fit for its purpose
- The product should match its description
- The product should be of satisfactory quality
Customers can ask for a refund, return or replacement
Employment law: Recruitment
- Must not discriminate on religion, gender, age etc. ( Equality Act 2010)
- recruits must have legal right to work
Employment law: Pay
- Must pay staff the national minimum wage if 22 and under
- National living wage 23 and above
Employment law: Discrimination
- all employees must be paid the same for the same job
- if an employee has been discriminated, they will have to pay compensation
- business is held responsibe if an employee discriminates
Employment law: Health and Safety
- need to carry out risk assessments
- all staff must receive health and safety training
- bad publicity if major accident occurs
- Increase in businesses’ costs
