Topic 4 Flashcards
Identify the nine key stakeholders
Owner, staff, suppliers, customers, creditors, lenders, pressure groups, local communities and government
Explain the interest that the owner has in the business
Successful business with increasing profits, leads to a larger share of profit
The main say in how the business runs
Opportunities to grow the business
Explain the interest that staff have in the business
Successful business to ensure job security
Good salary/wage
Good working conditions
Opportunities for promotion
Fair holiday entitlement
Explain the interest that suppliers have in the business
Successful business to ensure payment on time
Regular orders
Fair prices
Explain the interest that customers have in the business
High quality goods
Fair prices of goods
Good customer service
Reasonable delivery time
Good after sales service
Explain the interest that creditors have in the business
Full and regular payments on agreed dates
Profitable business to ensure money owed can be paid back
Explain the interest that lenders have in the business
Valuable asset base, can be used as financial security
Excellent credit rating
Repayments paid on time
Explain the interest that pressure groups have in the business
They want to be listened to
Ensure fair treatment to employees
Challenge the behaviour of a business
Explain the interest that local communities have in the business
Secure jobs in the local area and contribute to the local economy
Avoidance of noise and air pollution
Provision of facilities for local community
Explain the interest that the government have in the business
Create employment opportunities for local people to improve economy
Be successful in order to pay taxes
Uphold their corporate social responsibility by adhering to various laws, eg payment of minimum wages
Give five advantages of the use of social media for businesses and stakeholders
Increases customer awareness - provides information about new and existing products
Viral marketing - a social media post can spread rapidly by people sharing posts
Reduced costs for the business - it is a lot cheaper to advertise on social media compared to TV, billboards, etc
Customer reviews can help aid with product development
Customers can get in contact with the business very easily through social media platforms
Give four disadvantages of the use of social media for businesses and stakeholders
Cost - the use of social media requires extensive IT support, which increases cost for a business
Privacy and security concerns exist over the fear of personal data being leaked
Stakeholders can leave negative feedback on a business’ social media platform, affecting the corporate image
Doesn’t reach everyone as not all potential customers may use social media, eg elderly customers are usually unfamiliar with such platforms
