Stakeholders

Question 1

Difference between stakeholders and shareholders

Answer 1

Stakeholders have an interest in the business. They may work for or transact with the business.

Shareholders own the business and may work in the business. They are interested in growing the value of their shareholding. A shareholder is an example of a stakeholder.

Question 2

What are the three groups stakeholders can be grouped into

Answer 2

Internal: to the business
- employees
- shareholders/owners

Connected: relationship based on a contract
- customers
- suppliers
- creditors (who the business owes money to)

External: relationship not based on a legal contract
- competitors
- government
- society/ the wider community
- pressure groups

Question 3

What objectives relate to shareholders/owners

Answer 3

• return on investment, profits + dividends
• success and growth of business

Question 4

What objectives relate to managers and employees

Answer 4

• rewards (eg basic pay, financial incentives)
• promotion opportunities and job satisfaction

Question 5

What objectives relate to customers

Answer 5

• value for money
• product quality and customer service

Question 6

What objectives relate to suppliers

Answer 6

• profitable trade
• financial stability

Question 7

What objectives relate to banks and other financial providers

Answer 7

• repayment
• profitability and cash flows of the business
• growth in profits and value

Question 8

What objectives relate to government

Answer 8

• collection/payment of taxes
• help growth, creating jobs

Question 9

What objectives relate to local community

Answer 9

• success, creating and retaining jobs
• compliance with local laws and regulations eg noise or pollution

Question 10

What objectives relate to pressure groups

Answer 10

• business acts honestly and fairly in best interests of customers, society, the environment etc

Question 11

Influences employees have on a business

Answer 11

Direct action (strikes)

Question 12

Influences suppliers have on a business

Answer 12

Negotiation

(Better t&cs)

Question 13

Influences stakeholders in general have on a business

Answer 13

Voting on business decisions

Question 14

Influences employees have on a business if they’re not happy with suggested changes

Answer 14

Refuse to co operate / work to rule (bare minimum)