lo5

Question 1

what is a stakeholder

Answer 1

a person / group of people who are affected by the activities of a business

Question 2

internal stakeholder

Answer 2

based within a business

Question 3

external stakeholder

Answer 3

come from outside of the business

Question 4

example of internal

Answer 4

• owners
• employes

Question 5

owners objectives

Answer 5

• make enough profit
• achieve business growth
• be competitve

Question 6

employees objectives

Answer 6

• job security
• good working conditions
• high pay

Question 7

external stakeholders example

Answer 7

• customers
• shareholders and potential investors
• local residents
• pressure groups
• suppliers
• banks and lenders
• central government
• local government

Question 8

customers objectives

Answer 8

• low prices
• good choice of products
• high quality products

Question 9

shareholders and potential investors objectives

Answer 9

• high dividends
• high share prices
• voting rights

Question 10

local residents objectives

Answer 10

• minimise pollution
• reduce traffic congestion
• more jobs

Question 11

pressure groups objectives

Answer 11

• stop child labour
• preserve the woodlands and forests
• stop product testing on animals

Question 12

suppliers objectives

Answer 12

• high prices
• regular orders
• being paid on time

Question 13

banks and lenders objectives

Answer 13

• high interest rates
• being paid back on time
• business loyalty

Question 14

central goverment objectives

Answer 14

• health and safety
• collecting taxes
• being environmentally friendly

Question 15

local goverment objectives

Answer 15

• enviromental health
• beuilding control
• stopping fly tipping

Question 16

how can employees alter business behaviour

Answer 16

refuse to work over time

Question 17

how can trade unions alter bsuiness behaviour

Answer 17

call strike

Question 18

how can customers alter business behaviour

Answer 18

boycott

Question 19

how can pressure groups alter business behaviour

Answer 19

protest

Question 20

how can suppliers alter business behaviour

Answer 20

refuse to supply the business

Question 21

how can local residents alter business behaviour

Answer 21

complain to local press

Question 22

how can local gov alter business behaviour

Answer 22

withholds planning permission

Question 23

how can central gov alter business behaviour

Answer 23

fine the business

Question 24

how can shareholders alter business behaviour

Answer 24

call an extraordinary meeting

Question 25

5.3

Question 26

what are the consequences to not responding to stakeholders

Answer 26

- bad publicity - weaker cash flow position - loss of customers - poor reputation - fewer investors - loss of profit - increased staff absence - financial difficulties