1.4 Stakeholders

Stakeholder - any person or organization with the direct interest in or are affected by the actions of a business

  • Internal :members of the organization

    • Ex.

      • Shareholders

      • Employees

      • Managers

  • External : not part of the organization

    • do not have direct

    • Ex.

      • Customer

      • Suppliers

      • Competitors

      • Government

Internal Stakeholders | Areas of interest

Employees

  • ↑ Wages

  • 👍 Working Condition

  • Job Security

  • Advancement

Shareholders

  • ↑ Dividends

  • Business growth → capital gains

Managers - day to day operations

  • Profit maximization

  • ↑ bonuses

Directors- elected to oversee operations

External Shareholders

Suppliers

  • Continue receive orders

Customers

  • ↑ Quality

  • ↓ Price

Special Interest Groups

  • Includes:

    • Pressure Groups

    • Trade Unions

    • Local Community

Competitors

  • Competition

  • → New product innovation

Government

  • Review health and safety standards

  • Ensure that taxes are paid

  • Protect customers and employees through oversight of relevant laws

Financiers

  • Borrow ability to generate profits & repay debts & make regular interest payment

  • Establish long term relationships

Stakeholders conflict - clash of stakeholder interest

Mutual Benefits of Stakeholders interest

Meeting needs of 2 conflicting stakeholders groups

Stakeholder mapping is a model is a model that assesses the relative interest of stakeholders and their relative power ( or influence) on business.

Identify is just list -

  • does not have to be in material

  • think outside the material

Explain

  • Identify something

  • then explain

  • why those two conflict

Discuss

  • 3 marks ,identify one resolution explain

  • 3 marks , for a second resolution explain

One source of conflict between Skoda Auto’s various stakeholders was