3.1.4 - Stakeholers

• What are stakeholders in business?

  Individuals, groups, or organizations with an interest in or affected by a company's actions.
• What are the two categories of stakeholders?

  Internal and external stakeholders.
• Who are considered internal stakeholders?

  Employees, managers, and owners/shareholders.
• Who are considered external stakeholders?

  Customers, suppliers, local community, government, and competitors.
• How can stakeholders affect a business?

  They can influence the company's decisions and performance.
• Why do stakeholders have different expectations from a business?

  They have different interests in the business
• What can happen due to conflicting expectations among stakeholders?

  It can cause disagreements within the business
• What are the different priorities of various stakeholder groups?

  • Shareholders: want business success and profit
  • Managers: seek good salary and career progression
  • Employees: desire good pay, job satisfaction, and security
  • Customers: expect quality products at reasonable prices
  • Suppliers: want timely payments and regular orders
  • Local community: looks for job opportunities
  • Pressure groups: aim to influence business for their cause
  • Government: wants job creation for tax revenue
• What do shareholders expect from a business?

  Success and profit generation
• What do managers typically want from their jobs?

  A good salary and career progression
• What do employees seek in their workplace?

  Good pay, job satisfaction, and security
• What do customers want from businesses?

  Good quality products at reasonable prices
• What do suppliers expect from businesses?

  Timely payments and regular orders
• What does the local community expect from businesses?

  Job opportunities in the area
• What is the role of pressure groups in relation to businesses?

  To influence business activity for their cause
• What do pressure groups want to increase awareness of?

  Their cause related to business activities
• What does the government expect from businesses?

  To create jobs for tax revenue
• How do stakeholders influence business decisions?

  By having different interests and expectations
• What are the potential conflicts between stakeholder groups?

  • Shareholders vs. employees: profit vs. pay
  • Managers vs. customers: salary vs. product quality
  • Suppliers vs. local community: payments vs. job creation
  • Pressure groups vs. businesses: cause awareness vs. profit motives