The power and influence of different stakeholder groups can vary significantly depending on factors such as their financial stake and strategic direction
Stakeholders can influence the business through public opinion and regulations
Stakeholders are individuals or groups with an interest in the business and can affect or be affected by its policies
What are internal stakeholders?
Those within the business
What are external stakeholders?
Those outside the business
What are stakeholders in a business context?
Interested groups affecting the business
Understanding stakeholder interests is crucial for businesses to balance their needs and make informed decisions.
True
Match the internal stakeholder group with their primary contribution to the business:
Owners/Shareholders ↔️ Provide capital, set strategic direction
Employees ↔️ Execute operations, produce goods and services
Managers ↔️ Plan, organize, and control business activities
External stakeholders are individuals or groups outside the business that have an interest in the business and can affect or be affected by its activities, goals, and policies
Match the stakeholder group with their primary interest in the business:
Owners/Shareholders ↔️ Maximizing profits and business value
Employees ↔️ Job security, good working conditions, fair pay
Internal stakeholders are the individuals and groups within a business who have a direct stake in its operations and performance
What are external stakeholders in a business?
Groups outside the business
Who are considered internal stakeholders in a business?
Owners, employees, and managers
What are the main stakeholder groups identified in the study material?
Owners, employees, customers, suppliers, local community, government
Why is understanding stakeholder relationships crucial for businesses?
To manage them effectively
Understanding stakeholder interests is essential for businesses to make decisions that benefit the overall business.
True
Unlike external stakeholders, internal stakeholders have a direct impact on the business's daily operations.
True
Understanding the interests of external stakeholders is crucial for businesses to balance their needs and foster positive relationships.
True
Which stakeholder group has high power and influence due to providing capital and strategic direction?
Owners/Shareholders
What is the goal of negotiation in resolving stakeholder conflict?
Finding a compromise
Stakeholders are individuals or groups that have an interest in the business and can affect or be affected by the business's activities, goals, and policies
What are internal stakeholders in a business?
Groups within the business
Internal stakeholders have a direct financial stake in the business.
True
External stakeholders can significantly impact the business through public opinion and regulations.
True
Understanding stakeholder power and influence is crucial for businesses to manage relationships effectively and make balanced decisions.
True
The government has high power over businesses because it can impose laws, regulations, and taxes.
True
Match the stakeholder group with their primary interest:
Owners/Shareholders ↔️ Maximizing profits
Employees ↔️ Job security
Customers ↔️ Quality products
Local Community ↔️ Environmental and social well-being
Employees contribute to the business by executing operations and producing goods and services
The local community is interested in minimizing negative environmental and social impacts
Stakeholder power refers to their ability to make decisions that impact the business
Collaboration involves working together with stakeholders to find a mutually beneficial solution
Match the stakeholder group with their primary interest:
Owners/Shareholders ↔️ Maximizing profits and business value
Employees ↔️ Job security, good working conditions
Customers ↔️ Quality products/services at reasonable prices
Government ↔️ Compliance with laws and regulations
Stakeholder conflict occurs when the interests of different stakeholder groups are in opposition.
True
Balancing the diverse interests of stakeholders is essential for navigating stakeholder conflict effectively.