understanding the role and importance of stakeholders

Flashcards covering Stakeholders, their interests, and relationships in business, designed for AQA A Level Business revision.

Stakeholder

Anyone who has an interest in the business and is impacted by the way that it trades.

Owner (Internal Stakeholder)

The person (or persons) who started the business; interested in making a profit and achieving business objectives.

Employees (Internal Stakeholder)

Work inside the business; interested in job security, pay rates, and promotional prospects.

Managers (Internal Stakeholder)

Work inside a business and are in charge of the employees; interested in financial bonuses, resource management costs, budgets and targets.

Competitor (External Stakeholder)

A rival business working in the same industry; interested in prices, promotions, marketing mix, supplier management, and Human Resource Management of other businesses.

Suppliers (External Stakeholder)

Interested in the business because they want to know if they will get paid for the goods and services they have provided and in future orders.

Customers (External Stakeholder)

Want quality products and services at low prices and products that satisfy their needs; interested in the availability of products.

Government (External Stakeholder)

Interested in the business because they want to know that they will pay their taxes and adhere to any laws.

Local Community (External Stakeholder)

Interested in the business because it may pollute the environment or cause noise; concerned about the impact on house prices.

Shareholders and Investors

Want to know if a profit will be made and if they will be paid a dividend.

Stakeholder Map

A visual representation of individuals, groups, or organizations that can have an influence on a business.

Stakeholder Consultation

Development of constructive relationships over the long-term, enabling the business to identify concerns and develop solutions.

Pressure Group

A group that tries to influence public policy in the interest of a particular cause.