U3 AOS1 CHPC FELIX's Flashcards
Who are the 6 stakeholders in a business
Owners, Managers, Employees, Customers, Suppliers and General community
What is a stakeholder in a business
Stakeholder(n.)=An individual or group that has a vested interest in the actions of that business.
Use this def instead=
Stakeholders(n.)=are individuals, groups, or organisations who have a vested interest in the performance and activities of a business.
How are managers a stakeholder of a business?
What are the managers vested interests of a business?
-Managers are interested in the success of the business= from a job security, financial and personal reputation position.
-Job security position=they need the business to run inorder to keep their jobs
-Financial position=if the business does well, they are likely to have increases in pay
-Personal reputation position=they may get fame and noticed for being the person that brings the business up or down, which could affect your chances of being accepted at other jobs
-For a sole trader the manager and the owner may be the same person, but its not the case for all businesses.
how are owners a stakeholder of a business?
What are the owners vested interests of a business?
-Owners are interested in success of a business= from a financial and a personal reputation position. They are likely to be deeply invested
-The owner has capital invested in business=,if business fails, they will be hurt by it.
-The owner might also have their name all over the business, such on the shop name and logos, and people know they are associated with that business= if the business fails, their reputation will be affected.
-Owners are commonly concerned by their return on investment (ROI)
-Return on investment(n.)=What the owner gains financially from the business compared to the sum they invested
How are customers a stakeholder of a business?
What are the customers vested interests of a business?
-Customers are interest in the success of the business= from a consumption position.
-Consumption position=They want the business goods and/or services to be high quality, well priced and meet their market needs.
-They can have different levels of investment and loyalty invested.
How are employees a stakeholder of a business?
What are the employees vested interests of a business?
-Employees are interested in the success of the business= from a job security, financial, career development, personal reputation positions
-Job security=paid to work at that business, and if business goes into the decline, they may be fired
-Financial=get paid to work, supporting your life
-Career development=developing skills and abilities inorder to get higher levels of pay, or giving the employee the skills to work at another business
-Personal reputation=if your associated with a business for doing good and bad things, it will affect your chances of getting work elsewhere and it will cause people to have predetermined views about you
-every employee is not equally interested in the business
-How does an individual express their interest in the business and achieve them?=asking their boss by themselves or in a union
-Union is like a organization that represents the interests of an employee/s, and where multiple people go to the manager inorder to decrease the managers chances of saying no towards the request of the employee based on their interest.
-Union(n.)=An organization that represents the interests of employees.
How are suppliers a stakeholder of a business?
What are the suppliers vested interests of a business?
-Suppliers are interested in the success of the business= from a financial and associated reputation position.
-Financial position=our success is linked to their success. If we sell more, we need more supplies which in return gives them more money
-Associated reputation position=if the business sells something of awful quality, the suppliers are associated with the business as they are the ones giving the business supplies and the suppliers reputation is affected
-They are likely to be strongly invested.
How are general community a stakeholder of a business?
What are the general community vested interests of a business?
-The general community are interested in the success of the business= from an indirect effect position. They are likely to be less heavily invested, unless a bad consequence occurs.
-Indirect effect= If a situation arises from the businesses operations that affects the general community
-Positive effects
:Financial donations to local clubs, sponsorship
:Investment of employees’ time/skill in local project(allowing people to gain the expertise, skills, wisdom and help necessary to complete something)
:Employment(giving employees money that will be used by the employee and given to other local businesses stimulating the economy).
-Negative effects
:Land clearance
:Pollution, environmental damage, and oil spills
:Unemployment leading to ripple effects through the economy(affecting workers and their income, and effecting their ability to buy items from local areas)
What is a vested interest
-vested interest(n.)= someone who is actively concerned with what’s going on with the business, and are directly involved or will be affected by how that business proceeds.
Use this definition=
-vested interest(n.)=involves someone who is actively concerned with the activities of the business, and are directly involved or will be affected by how that business proceeds.
What is a union
-Union(n.)=An organization that represents the interests of employees.
Define owners(n.)
Use this def instead=
Owners(n.) are individuals who are intrinsically motivated and have a vested interested in the ability of their business to meet its objectives and continue to adapt, as this is essential to its survival and success.1
Owners(n.)=Owners are individual who establish, invest, and have a share in a business, with the vested interest of the business achieving its business objectives, and receiving a return on their investment.
Define mangers(n.)
Managers(n.)=managers are individuals, which act as the representatives of the owners, and have a vested interest in the business’s ability to achieve business objectives.
Define employees(n.)
Employees(n.)=workers that have a vested interest in completing the tasks allocated to them by managers to achieve organisational objectives.
Define customers(n.)
Customers(n.)=are individuals or groups who interact with a business AND HAVE A VESTED INTEREST TOWARDS ITS goods and services.
Use this def instead=
Customers(n.)=are individuals, groups or organisations that have a vested interest in the quality and price of a business’s goods or services.
Define suppliers(n.)
Suppliers(n.)=are individuals or groups that source and supply a business with raw materials, component parts, and processed materials [CAN I JUST SAY INPUTS OR RESOURCES] and have a vested interest upon the business’s performance and the amount of resources they require.
Use this def instead=
Suppliers are individuals or groups who supply a business with raw materials and resources, and have a vested interest on the performance of the business and their demand for resources.
