Topic 7 - Stakeholders

Question 1

Stakeholder Interdependence

Answer 1

Owners/Managers and Government:
Owners need governments to make good decisions while governments need owners to create jobs.

Owners/Managers and Suppliers:
Managers need suppliers to provide quality raw materials while suppliers need managers to keep buying from them to keep them in business.

Owners/Managers and Customers:
Owners need customers to buy their products while customers need owners to provide a high quality product and good customer service.

Owners and employees:
Owners need employees to perform their best to maximise profits through work rate or customer service while employees need owners to make good decisions to keep the business profitable and their jobs safe.

Managers and Employees:
Managers and employees need to work together to help the business succeed in order to keep their jobs safe.

Question 2

Stakeholder Conflict

Answer 2

Employees vs Owners/Managers:
Employees want a pay rise whereas owners want to maximise profits.

Customers vs Owners/Managers:
Customers want low prices and value for money whereas owners want to raise prices to maximise profits and meet their own objectives.

Suppliers vs Owners/Managers:
Suppliers want to be paid as soon as possible in cash whereas owners want trade credit to keep good cash flow in the business.

Government vs Owners/Managers:
Governments may want to introduce legislation to improve society whereas owners may disagree as the legislation may impact negatively on their business.