Understanding business

Question 1

What is a stakeholder?

Answer 1

a stake holder is a person or group of people who have an interest in the success of a business. They can also influence what the business does.

Question 2

What are internal stakeholders?

Answer 2

people who own and/or work WITHIN the organisation

Question 3

What are external stakeholders?

Answer 3

people who have an interest from OUTWITH the organisation

Question 4

What is ‘interest’ and ‘influence’ in terms of stakeholders?

Answer 4

interest - what they want from the business. influence - an action that will impact on what the business does

Question 5

List internal stakeholders?

Answer 5

owners, shareholders, employees

Question 6

what interest do owners have in a business?

Answer 6

want the business to make a profit, want a good return on the money they have invested

Question 7

what influence do owners have on a business?

Answer 7

can invest more or less capital in the business, make decisions

Question 8

what interest do shareholders have in a business?

Answer 8

want the business to make a profit, want good return on the money they have invested in the form of dividends

Question 9

what influence do shareholders have on a business?

Answer 9

can invest more or less capital in the business, can make decisions by voting at Annual General Meetings

Question 10

what interest do employees have in a business?

Answer 10

want to receive a good rate of pay, want to be treated fairly, want good working conditions, want to receive continuing professional development and training, want to receive as many benefits as possible eg comapny car

Question 11

what influence do employees have on a business?

Answer 11

can take industrial action such as a strike, can make products of a poor uality

Question 12

list external stakeholders

Answer 12

banks, customers, suppliers, local community, pressure groups, local government, national government

Question 13

what interest do banks have in a business?

Answer 13

want the business to open a bank account, want loans to be repaid on time, want mortgages on premises to be taken out and repaid on time

Question 14

what influence to banks have on a business?

Answer 14

can refuse to provide a loan, can demand repayments of loans instantly, can charge high interest rates on loans

Question 15

what interest do customers have in a business?

Answer 15

want a good quality product, want to pay a reasonable price for the product being bought, want to receive good customer service

Question 16

what influence do customers have on a business?

Answer 16

can shop elsewhere, through word of mouth or online reviews can provide positive or negative feedback to others

Question 17

what interest do suppliers have in a business?

Answer 17

want to be paid on time for the materials provided, want to receive repeat orders for materials

Question 18

what influence do suppliers have on a business?

Answer 18

can increase the price they charge, can refuse to provide credit on materials, may not deliver on time

Question 19

what interest does the local community have in a business?

Answer 19

want jobs in the local area, want businesses in the local area to be socially responsible

Question 20

what influence does the local community have on a business?

Answer 20

can make complaints to their local council or MP, can protest, eg by writing to the local newspaper

Question 21

what interest do pressure groups have on a business?

Answer 21

want to know if a business will have a negative impact on the area or community, support and promote a specific interest or cause

Question 22

what influence do pressure group have on businesses?

Answer 22

can make complaints to their local council or MP, can protest, eg by writing to the local newspaper

Question 23

what interest do the local government have in a business?

Answer 23

want jobs in the local area, want business to invest money in the local aera

Question 24

what influence does the local government have on a business?

Answer 24

can refuse or grant planning, can close down businesses that do not comply with environmental health requirements (eg restaurants)

Question 25

what interest does the national government have in a business?

Answer 25

want low employment figures so that less money is paid out on benefits, want taxes to be pid so that money can be invested into other parts of the economy, want the law to be followed

Question 26

what influence does the national government have on a business?

Answer 26

can change the amount of tax to be paid, can introduce or change the law.

Question 27

what are internal factors?

Answer 27

things from INSIDE a business that impact on how it operates

Question 28

what are external factors?

Answer 28

things that come from OUTSIDE of the business that impact on how it operates (also known as PESTEC)

Question 29

list internal factors

Answer 29

Finance
Human resources (managers, staff)
Current Technology

Question 30

describe what finance means

Answer 30

the amount of money available to put a decision into action

Question 31

how does finance impact a business?

Answer 31

lack of finance can mean that the business cannot follow through some decisions eg to build a new factory

Question 32

describe what staff means

Answer 32

the skills and experience of the staff the business employs

Question 33

how do staff impact a business?

Answer 33

if the staff don’t have the necessary skills then the business may have to pay money to have them trained before they follow through a decision

Question 34

describe what managers means?

Answer 34

do managers have the skills to make decisions

Question 35

how do managers impact a business?

Answer 35

without experience of making decisions it is likely that the decision made will not be as good as they could

Question 36

describe current technology

Answer 36

does the business have the latest equipment/pieces of technology available to them

Question 37

how does current technology impact a business?

Answer 37

if they don’t have this then they may have to buy more up-to-date technology OR not follow through on a decision

Question 38

List external factors (PESTEC)

Answer 38

political
economic
social
technological
environment
competitive

Question 39

describe what political means

Answer 39

changes made by the government eg changes to laws; changes to rates of taxation; war