A Level Eduqas Business - Stakeholders

A set of vocabulary flashcards defining key terms, stakeholder groups, approaches, and real-world examples from the A Level Eduqas Business lecture on stakeholders.

Stakeholders

Individuals or groups who are influenced by, and hold an interest in, the activities of a business and can in turn have a positive or negative impact upon a firm.

Stakeholder Approach

A strategy in which a business considers the views and needs of all its various stakeholder groups when making strategic decisions to serve the long-term interests of the firm.

Shareholder Approach

A strategy that prioritises the interests and views of shareholders above all other stakeholders, focusing on profit maximisation, strong share price, and dividend payments.

Business Owners

Stakeholders who guide the overall direction of a business and hold a strong financial interest in its success, often focusing on profit maximisation.

Managers

Stakeholders actively involved in day-to-day operations who hold decision-making powers, responsible for achieving strategic targets and managing and motivating staff.

Employees

Internal stakeholders who influence a business through productivity, customer service, and efficiency, and whose interests lie in job security, fair pay, safe conditions, and promotion.

Suppliers

External stakeholders responsible for supplying goods at the required time, quality, and price point, seeking long-term contracts and prompt payment.

Customers

Key external stakeholders whose buying decisions directly affect sales and revenue, seeking high-quality products, value for money, good customer service, and ethical practices.

Pressure Groups

Organisations that influence public opinion and firm policies through campaigns, social media, and protests to promote social, environmental, or ethical improvements.

Shareholders

Owners or institutional investors with voting rights and financial power who focus on financial returns, share price growth, dividend payments, and long-term sustainability.

Local Community

External stakeholders influenced by a business's local operations, interested in job creation, regional regeneration, and local environmental impact.

Creditors

Financial providers who influence a firm's cash flow and liquidity position, primarily interested in loan repayment, interest payments, and risk assessment.

Competitors

Rival businesses operating in the same market that influence pricing, product development, and market share, driving market competition and innovation.

Government

The authority that creates and enforces regulations and economic policies, seeking economic stability, growth, investment, job creation, and tax revenues.

Stakeholder Mapping

A strategic process used by businesses to assess the power and interest of different stakeholder groups to efficiently allocate resources and manage engagement.

Brent Spar Case Study

A 1995 incident where Shell UK's plan to dispose of an oil platform in the North Sea caused severe backlash from pressure groups like Greenpeace, damaging the firm's reputation.