U1- Stakeholders Flashcards
Name the 8 stakeholders covered in the higher course
Owner/ shareholder Community Suppliers Government Banks Customers Employees Managers
What is the influence of the owner/ shareholder?
They can purchase more shares or sell them
What is the influence of managers?
They make decisions on the future plans of the organisation
What is the influence of employees?
They can affect the quality of a product or service by working hard, or not
What is the influence of customers?
They buy the good or service/ do not if they are unhappy
What is the influence of banks?
They chose whether or not to provide finance
What is the influence of government?
Can alter legislation which affects the business
What is the influence of suppliers?
They can alter the price of supplies
They can fail to deliver
What is the influence of community?
Can petition the organisation to make a change to environmental policies
Name 3 things shareholders want
Higher profits
Reduced cost
Higher dividends
Name 4 things managers want
Reduced costs
Maintenance of cash flow
Higher profits
Lower borrowing costs
Name 3 things the government want
Reduced pollution
Increased employment
Increased exports
Name 2 things customers want
Reduced prices
High quality
Name 1 thing the bank wants
Higher interest rates
Name 2 things suppliers want
Price increase
Prompt payment
Name 3 things employees want
Higher wages
No redundancies
Retained conditions of employment
Give 2 examples where conflict of interest for stakeholders could arise
Higher profits for shareholders may mean no pay rise for employees
Employees may want a high wage for the work they do but the business owner might want to keep wage costs at a minimum
Give 4 examples of stakeholder interdependence
Employees need the business to provide jobs/ business needs employees to do the work
Customers need the business to provide goods/ business needs the customers to make sales
Suppliers need the business to keep making purchases/ business needs the supplier to keep supplying
Government needs the business to provide jobs and pay tax/ business needs the government to ensure it can continue trading
