IB Business Management 1.4

What is a stakeholder?

any individual, group, or organizations with a direct interest/is affected by the activities of a business

What are internal stakeholders?

members of the business organization

What are employees interested in?

pay benefits, working conditions, job security

What are managers and directors interested in?

profit maximization, job security + financial benefits, long term financial health of the company

What are shareholders interested in?

maximizing dividends, achieving capital gain in the value of the shares

What are external stakeholders?

they do not form part of a business but have a direct interest in the activities of a business

What are customers interested in?

quality of goods and services, value for money

What are suppliers interested in?

clients who pay on time, regular contracts with clients

What are financiers interested in?

the ability of a firm to repay debts by generating sufficient profits

What are pressure groups?

individuals with a common interest who seek to place demands on organizations to influence a change in their behavior

What are competitors interested in?

innovation that arises from rivalry, responding to competitive threats

What is the government interested in?

unfair business practices are avoided, health and safety standards are met

What is stakeholder conflict?

the inability of an organization to meet all of its stakeholder objectives simultaneously

What does resolving conflict depend on?

type of organization, organizational aims/objectives, source and degree of influence of each stakeholder group