Understanding business Flashcards
What is a stakeholder?
A stakeholder is a person or group of people who have an interest in the success of a business. They also can influence what the business done.
What is an influence someone can have on a business?
An influence is an action that will impact on what the business does
What is an interest someone has on a business?
An interest is what they want from the business
What is an internal stakeholder?
An internal stakeholder is someone who owns and/or work within the organisation
What is an external stakeholder?
An external stakeholder is people who have an interest from without the organisation
List all Internal stakeholders in a business
Owners,Shareholders,Employees.
List all external stakeholders in a business
Banks,Customers,Suppliers,Local community,Pressure groups,Local government,National government
What interests and influences do owners have
Interests
- Want the business to make profit.
- Want to have a good return on the money they have invested
Influences
- Can invest more or less capital in the business
- Male decisions
What interests and influences do shareholders have
Interests
- Want the business to make profit
- Want a good return on the money they have invested
Influences.
- Can invest more or less capital in the business
- Can make decisions by voting at Annual General Meetings
What interests and influences do employees have
Interests
1. Want to receive a good rate of pay
2 .Want to be treated fairly
3. Want good working conditions
4. Want to receive continuing professional development and training
5. Want to receive as many benefits as possible, eg company car.
Influences
- Can take industrial action such as strike
- Can make products of a poor quality
What interests and influences do banks have
Interests
- 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.
Influences
- Can refuse to provide loans.
- Can demand repayment of loans instantly
