Understanding business Flashcards
(39 cards)
What is a stakeholder?
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.
What are internal stakeholders?
people who own and/or work WITHIN the organisation
What are external stakeholders?
people who have an interest from OUTWITH the organisation
What is ‘interest’ and ‘influence’ in terms of stakeholders?
interest - what they want from the business. influence - an action that will impact on what the business does
List internal stakeholders?
owners, shareholders, employees
what interest do owners have in a business?
want the business to make a profit, want a good return on the money they have invested
what influence do owners have on a business?
can invest more or less capital in the business, make decisions
what interest do shareholders have in a business?
want the business to make a profit, want good return on the money they have invested in the form of dividends
what influence do shareholders have on a business?
can invest more or less capital in the business, can make decisions by voting at Annual General Meetings
what interest do employees have in a business?
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
what influence do employees have on a business?
can take industrial action such as a strike, can make products of a poor uality
list external stakeholders
banks, customers, suppliers, local community, pressure groups, local government, national government
what interest do banks have in a business?
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
what influence to banks have on a business?
can refuse to provide a loan, can demand repayments of loans instantly, can charge high interest rates on loans
what interest do customers have in a business?
want a good quality product, want to pay a reasonable price for the product being bought, want to receive good customer service
what influence do customers have on a business?
can shop elsewhere, through word of mouth or online reviews can provide positive or negative feedback to others
what interest do suppliers have in a business?
want to be paid on time for the materials provided, want to receive repeat orders for materials
what influence do suppliers have on a business?
can increase the price they charge, can refuse to provide credit on materials, may not deliver on time
what interest does the local community have in a business?
want jobs in the local area, want businesses in the local area to be socially responsible
what influence does the local community have on a business?
can make complaints to their local council or MP, can protest, eg by writing to the local newspaper
what interest do pressure groups have on a business?
want to know if a business will have a negative impact on the area or community, support and promote a specific interest or cause
what influence do pressure group have on businesses?
can make complaints to their local council or MP, can protest, eg by writing to the local newspaper
what interest do the local government have in a business?
want jobs in the local area, want business to invest money in the local aera
what influence does the local government have on a business?
can refuse or grant planning, can close down businesses that do not comply with environmental health requirements (eg restaurants)
