1.4 Stakeholders

Stakeholders - are people or organizations that have a direct interest in a business and are affected by its performance.

• Internal stakeholders - members of the organization: employees, managers, shareholders, directors

• External stakeholders - not members of the organization: customers, suppliers, competitors, government.

Conflict between stakeholders - varying interests, conflict over profit, different aims and objectives.

Solving that conflict - looking at 3 key issues: what type of an organization is it, what are its aims and objectives, what is the degree of influence of each stakeholder.

Stakeholder mapping:

Shareholders - are people or organizations that own shares in a company making that partial owners of it.

Market share - firm’s sales within a certain time period as a percentage of the industry’s total sales revenue.