1.1.3 Stakeholders

Question 1

What is a stakeholder?

Answer 1

Anyone with an interest in the actions of a business.

Question 2

What are the government’s objectives?

Answer 2

To maximise the welfare of society.

Question 3

What are the firm’s objectives?

Answer 3

Profit maximisation.

Question 4

What are individuals’ objectives?

Answer 4

Maximise personal and economic wellbeing.

Question 5

What can businesses use when informing decision making to do with stakeholders?

Answer 5

Stakeholder mapping.

Question 6

What are the four sections of stakeholder mapping?

Answer 6

Keep satisfied, manage closely, monitor, keep informed.

Question 7

What does the ‘keep satisfied’ section mean in stakeholder mapping?

Answer 7

Influential group but little interest so need to consult with them.

Question 8

What does the ‘manage closely’ section mean in stakeholder mapping?

Answer 8

Most important group of stakeholder so should involve them in decision making.

Question 9

What does the ‘monitor’ section mean in stakeholder mapping?

Answer 9

Neither powerful or interested so minimum amount of effort with this group.

Question 10

What does the ‘keep informed’ section mean in stakeholder mapping?

Answer 10

High level of interest so keep them up to date, for example, the community.