unit 1 stakeholders and their effects on the business Flashcards
definition of a stakeholder
a person with an interest or concern in something in a business which cause major impacts to a business
owners
sole traders and partnerships have full control what the business says and does,. they strive for the business to be as profitable as possible
shareholders
whats the business to be profitable to get dividend.
usually they have little control depends how much share they have
employees
they rely on a business for work and good wages,.
wants to keep the business going and carries out the role of giving the business good service in order to keep customers happy.
if they get bad wages or workplace location they may go on strike which can affect the business’s reputation
customers
wants the business to continue to get goods or service.
wants expected quality for money that they spend on goods or service
business cannot survive without customers
business need to satisfy customers need or else the threat of closure may become a reality
suppliers
a business that supplies goods and service to another business and will want to see that business grow.
if the business close down it will affect the suppliers
if they give poor quality supplies it may ruin the business’s reputation.
if they are unreliable they may change to another service
government
they may change minimum wage.
they may change taxation levels. in addition they may help a business start in out to gain worker in certain areas
governments want business to succeed in order to to get more workers and this leads to less unemployment and more tax
local community
PLEASE DO NOT CONFUSE THIS FOR CUSTOMERS !
the community are interested in business developments. not every business is welcome. E.g. they may not want a business that deals with toxic waste.
a successful business however is welcome as it may generate prosperity in a community and better infrastructure
the community may do protest and ask local council to stop a business from coming to their area
are all stake holders important
no some have a greater impact than others, e.g. shareholders vs owner, government vs local community etc.
can a business please every stakeholder
no you cannot please every single one as they all have different motives. a business may please one but disappoint another.
they want job security and promotion. they want decent wages and good conditions
employees
most important stakeholder decides what happens to a business ad wants to make profit
owners and shareholder with large shares
they want good community so they can ensure the right product is deliverer at the right time. they also want to be paid on time
suppliers
they may want jobs and improve local facilities but not to the expense of the environment
the local community
want high quality products at low prices the want good service and fast delivery
* or quality at the price that they expected
customers
