UB7 : Stakeholders Flashcards
Owners
Their Interest - Return on investment
Their Influence - Making decisions
Shareholders
Their Interest - Return on investment
Their Influence - Voting at GM
Managers
Their Interest - Salary/Working Conditions
Their Influence - Decision Making
Employees
Their Interest - Salary / Working Conditions
Their Influence -Industrial Action
Customers
Their Interest - Low Prices/High Quality
Their Influence - Buying Power
Government
Their Interest - Taxes, provides jobs
Their Influence Laws, economic policy
Suppliers
Their Interest - More orders
Their Influence - Credit/Discounts
Community
Their Interest - Environmental and creation of jobs
Their Influence - Pressure groups
Conflicts of interest - Managers v Customers
Managers want the highest profit possible on sales whereas customers want low prices for high quality goods.
Conflicts of interest - Owners v Employees and Customers
A business decision to move production overseas may reduce staff costs. It will therefore benefit owners but work against the interests of existing staff who will lose their jobs. Customers also suffer if they receive a poorer service.
Conflicts of interest - Managers v Suppliers
Managers may want to pay for goods later to improve cash flow whereas the suppliers will want their payment as soon as possible
Interdependence - Managers & Suppliers
Managers need suppliers to provide them with high quality stock when required and suppliers need managers to buy supplies from them to keep them in business.
Interdependence - Owners & Employees
Owners need employees to work hard for them to help satisfy customers and increase sales and employees need owners to provide them with fair wages and good working conditions.
Interdependence - Customers & Owners
Customers need owners to provide them with the goods and services they require, and owners need customers to buy their products.
