1.4 (Part 1) - Stakeholders in Business Management

These flashcards cover key concepts about stakeholders in business management, their classifications, interests, and specific examples surrounding topics like SpaceX.

What defines a stakeholder in a business context?

A stakeholder is any individual, group, or organization that holds a direct interest in, or is influenced by, the activities and performance of a business.

What are the two main classifications of stakeholders?

Internal stakeholders and external stakeholders.

Who are considered internal stakeholders in a business?

Internal stakeholders include employees, managers, directors, and shareholders.

What are the primary interests of employees as internal stakeholders?

Improvements in pay and benefits, working conditions, job security, and career progression opportunities.

What are the main interests of managers and directors in a business?

Profit maximization, job security, financial benefits, and the long-term financial health of the company.

What interests do shareholders have in a company?

Maximizing dividends and achieving capital gain in the value of the share.

Who are the key external stakeholders of a business?

Customers, suppliers, pressure groups, competitors, and government.

What interests do customers typically have in a business?

Quality of goods and services and value for money.

What are the interests of suppliers as external stakeholders?

Timely payments, regular contracts, and good working relationships with clients.

What do financiers want to see from a firm?

The firm's ability to repay debts and generate sufficient profits.

What is the role of pressure groups in relation to businesses?

Pressure groups seek to influence organizational behavior based on their common interests.

How do competitors view other businesses in their industry?

They look for innovation, competitive threats, and performance benchmarking.

What might employees at SpaceX be interested in regarding its business plan?

Future product development plans for career opportunities.

What can potential shareholders of SpaceX be interested in?

Projected future earnings and potential return on investment.

What interests customers like NASA may have in SpaceX's business plan?

Future product development plans that align with their needs.

What would suppliers want to know about SpaceX's business plan?

Projected earnings to assess creditworthiness and demand.

What concerns would pressure groups have regarding SpaceX?

The ethical business practices in research & development and production.

What might competitors like Blue Origin be interested in regarding SpaceX's plans?

Product development plans that could pose a threat to their business.