Unit 1 - 1.5 - Stakeholders In Business Flashcards
What does ‘role’ refer to in the context of stakeholders?
What a stakeholder may do in connection with the business
What does ‘objectives’ refer to in the context of stakeholders?
What the stakeholder wishes to achieve
List three examples of internal stakeholders.
- Employees
- Managers
- Owners
List three examples of external stakeholders.
- Customers
- Suppliers
- Investors
True or False: Internal stakeholders are only those who have a financial interest in the business.
False
Fill in the blank: The _______ of a stakeholder refers to their actions in relation to the business.
[role]
Fill in the blank: The _______ of a stakeholder refers to their desired outcomes from the business.
[objectives]
Who are external stakeholders?
The local community, suppliers, customers, and government.
Who are internal stakeholders?
The business owners and the people who work in the business.
Define stakeholders.
Groups or individuals who have an interest in a business.
Fill in the blank: _______ are groups or individuals who have an interest in a business.
[Stakeholders]
Who are considered internal stakeholders?
Owners, Employees
Internal stakeholders are individuals or groups directly involved in the business.
What are the roles of internal stakeholders?
- Provide finance to start up and expand the business.
- Manage or run the business or employ managers.
- Produce goods and services.
Internal stakeholders are crucial for the operational and financial aspects of a business.
What are the main objectives of internal stakeholders?
- Make profits.
- Satisfaction of having a job and earning an income.
- Be treated fairly by employers.
- Enjoyment of social aspects of working with colleagues.
These objectives reflect the interests of those working within the organization.
Who are considered external stakeholders?
Customers, Suppliers, Government, Local community
External stakeholders are individuals or groups not directly involved in the business but affected by its activities.
What are the roles of customers as external stakeholders?
- Buy goods and services.
- Enjoy the benefits provided by goods and services.
- Pay affordable prices.
Customers are essential for the revenue generation of a business.
What are the roles of suppliers as external stakeholders?
- Sell goods for resale or components and materials needed to manufacture goods or provide a service.
- Make sales.
- Earn profits.
Suppliers are critical for providing the necessary resources for production.
What are the roles of government as external stakeholders?
- Help businesses, workers, and communities.
- Monitor and influence business activities.
- Encourage businesses as this leads to high employment and prosperous communities.
- Increase taxes paid to government.
Government involvement can significantly impact business operations and regulations.
What is the role of local communities as external stakeholders?
- Have a local area which is prosperous, healthy, and safe.
- Benefit from employment opportunities created by businesses.
Local communities are influenced by the economic activities of businesses in their area.
What are some benefits of business activity for stakeholders?
Profits, jobs and incomes, goods and services, sales, taxes, prosperity
These benefits impact stakeholders positively by enhancing their economic well-being.
What problems can business activity cause for stakeholders?
Financial losses, redundancy, poor goods and services, late or missed payments, bad publicity, negative impacts on the local environment and community
These problems can lead to significant challenges for stakeholders, affecting their overall quality of life.
True or False: Business activity can only have positive effects on stakeholders.
False
Business activities can have both positive and negative impacts on stakeholders.
Fill in the blank: Business activity can lead to _______ for stakeholders, such as redundancy and financial losses.
[problems]
This highlights the potential negative consequences of business operations.
List some positive impacts of business activity on stakeholders.
- Profits
- Jobs and incomes
- Goods and services
- Sales
- Taxes
- Prosperity
These factors contribute to the economic growth and stability of stakeholders.
Who are the primary stakeholders in a business?
Owners, Employees, Customers, Suppliers, Government, Local community
What is one benefit of business activities for owners?
Earn profits if the business is successful
What is one benefit of business activities for employees?
Employed in a job role within the business and able to earn an income
What is one problem that owners may face from business activities?
May lose money invested in the business if it fails
What could happen to employees if the business does not do well?
May be made redundant
What is a potential negative effect of unfair employment conditions?
Leading to stress
What do customers expect from businesses regarding products and services?
Obtain products and services at good prices that satisfy their wants
What is a risk customers face when purchasing from businesses?
May be sold poor quality goods and services
True or False: Customers may experience poor customer service.
True
What can suppliers lose if a business does not pay for goods supplied?
May lose money
What can cause cash flow problems for a business?
Delaying payment to their suppliers
What benefit does the government receive from business activities?
Receive tax revenue from the owners, workers, suppliers, and customers
What criticism may the government face regarding very large companies?
May be criticised if the business fails and the government does not step in
How can the local community benefit from a business?
People can earn money from jobs with the business
What negative externality might a business cause in the community?
Pollution and road congestion
What can stakeholders influence?
Business success.
Name one way stakeholders can help a business succeed.
By providing support and resources.
Name one way stakeholders can cause business failure.
By withdrawing support or resources.
What are indicators of business failure?
Losses, low sales, poor quality goods and services, negative impact on the local community.
How can business success be measured?
In terms of profits, growth, sales, returning customers, positive contribution to the local community.
Fill in the blank: Business failure may be indicated by _______.
losses, low sales, poor quality goods and services, negative impact on the local community.
Fill in the blank: Business success may be measured in terms of _______.
profits, growth, sales, returning customers, positive contribution to the local community.
Who are the primary stakeholders in a business?
Owners, Employees, Customers, Suppliers, Government, Local community
How can stakeholders influence the success of a business? List three ways.
- Investing enough money
- Working hard to produce good quality goods or services at competitive costs
- Creating a good reputation for the business by recommending it to others
Fill in the blank: A stakeholder can help a business succeed by providing supplies _______.
[promptly and at competitive prices]
What role does the government play as a stakeholder in a business?
Providing grants, planning permissions, and acting as a customer
How can a stakeholder contribute to the failure of a business? List two examples.
- Not investing enough to make the business efficient
- Producing poor quality goods or services
True or False: A stakeholder can disrupt production by industrial action.
True
Fill in the blank: A stakeholder can harm a business by publicizing instances of _______.
[poor quality goods or bad service]
What impact can failing to supply components on time have on a business?
Causes production delays
List two ways stakeholders may lead to increased costs for a business.
- Demanding high wages
- Increasing taxes
How might a stakeholder oppose a business’s expansion?
By refusing planning permission or not supporting its application
Fill in the blank: A stakeholder can lead to legal costs for a business by preventing _______.
[the expansion of the business]
What is one consequence of a stakeholder deciding to buy from competitors?
Reduced sales for the business
Who are the primary stakeholders in a business?
Owners, Employees, Customers, Suppliers, Government, Local community
How can stakeholders influence the success of a business? List three ways.
- Investing enough money
- Working hard to produce good quality goods or services at competitive costs
- Creating a good reputation for the business by recommending it to others
Fill in the blank: A stakeholder can help a business succeed by providing supplies _______.
[promptly and at competitive prices]
What role does the government play as a stakeholder in a business?
Providing grants, planning permissions, and acting as a customer
How can a stakeholder contribute to the failure of a business? List two examples.
- Not investing enough to make the business efficient
- Producing poor quality goods or services
True or False: A stakeholder can disrupt production by industrial action.
True
Fill in the blank: A stakeholder can harm a business by publicizing instances of _______.
[poor quality goods or bad service]
What impact can failing to supply components on time have on a business?
Causes production delays
List two ways stakeholders may lead to increased costs for a business.
- Demanding high wages
- Increasing taxes
How might a stakeholder oppose a business’s expansion?
By refusing planning permission or not supporting its application
Fill in the blank: A stakeholder can lead to legal costs for a business by preventing _______.
[the expansion of the business]
What is one consequence of a stakeholder deciding to buy from competitors?
Reduced sales for the business
