Business - Stakeholders

Pages 2,3,4,8 and 9

Stakeholder

individual/group that has interest in an organisation.
can affect/ be affected by that organisation

internal stakeholder

individual/party within the organisation

external stakeholder

don’t work within a business, but are affected by its activities

Examples of internal stakeholders

employers, owners, employees, investors, shareholders

examples of external stakeholders

consumers, trade associations, producers, supplies, government

Entrepreneur

Role: uses initiative to spot a gap in the market, takes personal/financial risk of setting up a business, with the aim of making profit. E.g. glenisk founder Jack Cleary

Owners

individuals/ entities that legally own a business. 

Employers

Hire employees to work for wage/salary
entrepreneurs become employers when they hire people

Employees

work for a business in return for wage/salary

board of directors

governing body of a company, most senior managers

Investors

Provide capital(finance) for a business

Shareholders (internal) - invest money in return for dividend
banks(external) - provide loans that are repaid with interest
state agencies(external) - offer grants. no return expected, but the grant must be used for a specific purpose

suppliers

supply raw materials required by a business

producer/manufacturer

turn raw materials into finished products to sell to a consumer

service providers

businesses that supply services(banking, insurance, accountancy) required by the business

consumers

people who buy/use goods and services for personal use

local community

people who live in the area where a business is situated

trade associations

represent businesses involved in similar types of activities

Interest/pressure groups

organisations that represent people with a common interest.

They exert influence through legal action, demonstrations/strikes, boycotts.

lobbying

practice of influencing government decisions, by communicating with decision makers or gaining media attention for a specific viewpoint.

Ibec

Irish Businesses and employers’ confederation - represents irish businesses

ICTU

Irish congress of trade unions - represents workers’ unions, speaks and acts for them

IFA

irish farmers association

ISME

Irish small and medium enterprises

Competitive relationship

Each party works towards a separate goal, win-lose relationship 

co-operative relationship

each party works towards a shared goal in partnership, win-win relationship

CO-operative, entrepreneur and investor

entrepreneur wants to expand business, so they provide investor with accurate clear info.

entrepreneur wins as they get finance
investor wins as they can make acurate and informed decisions

competitive, entrepreneur and investor

Entrepreneur wants to expand business, so they reinvest all profits and pay no dividends

entrepreneur wins as they get money for expansion
investor loses in short term, as they get no dividends as shareholder.