Unit 1.4

Question 1

What is a Stakeholder?

Answer 1

Is any individual, group or organization with a direct interest in, and affected by, the activities and performance of a business.

Question 2

Internal stakeholders

Answer 2

Employees, Managers, Shareholders,

Question 3

External stakeholders

Answer 3

Customers, Suppliers, Pressure Groups, Competitors, Governments, Banks and Lenders

Question 4

Stakeholder Interests & Conflicts

Answer 4

Decisions by a business can have both positive and negative effects on the various stakeholders in that business.
It is rare for all stakeholders to be either positively or negatively affected by one activity.

Question 5

How would these different situations affect Employees and Customers in positive and negative ways?

Answer 5

A company makes a strategy to cut costs
A company makes a sale promotion for an essential product
A new product is being released
A new technology is being added to the production process