Unit 1.4 - Stakeholders

Question 1

What is a stakeholder?

Answer 1

A stakeholder is any person or organisation with a direct interest in, and is affected by the activities and performance of a business.

Question 2

What is an internal stakeholder?

Answer 2

Members of the organisation.

Question 3

What are the internal stakeholder groups? Explain.

Answer 3

The employees: The staff of a business will have interent in the organisation they work for
Managers and directors: People who oversee the daily operations of a business. Aim for profit maximisation
Shareholders: Invests money in a company by purchasing its shares

Question 4

What is an external stakeholder?

Answer 4

They have a direct interest or involvement in the organisation

Question 5

What are the external stakeholder groups? Explain.

Answer 5

Customers, Suppliers, Government
Pressure groups: Individuals with a common interest who seek to place demands on organisations to act in a particular way or to influence a change in their behaviour.
Competitors: Rival businesses of an organisation.

Question 6

What is a stakeholder conflict? Why does conflict arise?

Answer 6

Because different stakeholder groups have varying interests in a business, it is likely that conflict will arise.
Problems arise because a business can’t simultaneously meet the needs of all its stakeholders.