1.4 Stakeholders + Entrepeneurship Flashcards
(19 cards)
Define stakeholders
individuals or organisations with an interest (stake) in a business as they are affected by the operations of the business.
Can be internal (people who own/work the business) or external (local community / gov).
Define internal stakeholders + state examples
individuals or groups who are part of the organisation
employees
managers
directors
shareholders
Define external stakeholders + state exampels
people or organisations not part of business
BUT have direct interest in its decisions, actions & performance
costumers. - pressure groups
competitors. - suppliers
financiers. - government
labour unions. - local community
State objectives of stakeholder ‘customers’
Want high-quality, affordable products/services.
Seek good customer service and a positive experience.
Aim for value for money and consistent reliability.
State objectives stakeholder suppliers
Want to be paid on time and in full.
Seek long-term, stable relationships with businesses.
Prefer firms with reliable demand and good financial health.
State objectives stakeholder shareholders
Want to maximise returns on their investment.
Expect a high share price and dividends.
Interested in long-term growth and profitability.
State objectives of stakeholder government
Aims to ensure businesses:
- Follow laws & regulations
- Pay taxes
- Support economic growth
Wants businesses to protect public interest (e.g. fair trade, employment).
State objectives of stakeholder ‘pressure groups’
Aim to influence business behaviour (e.g. ethics, environment).
Want businesses to adopt responsible practices aligned with their cause.
May pressure firms via campaigns or public protest.
State objectives stakeholders ‘owners’
Want profit and business success.
Aim to earn personal income from the business.
Seek control and autonomy over decision-making.
State objectives stakeholders ‘employees’
Want job security, fair pay, and safe conditions.
Expect opportunities for development and promotion.
Seek respect and motivation in their roles.
State objectives stakeholder ‘managers’
-Aim to meet company goals and boost efficiency.
-Want to minimise costs while maximising productivity.
-Interested in both company performance and personal advancement.
State objectives stakeholders local community
Want businesses to create jobs and support the local economy.
Expect companies to be socially responsible and environmentally conscious.
Seek contributions to local causes and community wellbeing.
Define stakeholder mapping
Visual tool that helps business identify appropriate strategies for managing relationships w/ stakeholders, by identifying which groups require close attention or minimal effort
Categorises stakeholders based on their level of interest & degree of power
Draw a stakeholder map
LEVEL OF INTEREST
LOW. HIGH
Group A: minimal effort. Group B: keep informed LOW. - low interest + little power. - to create sense of belonging + encourage support
- can usually be ignored. - little effort required (eg, local community)
HIGH. Group C: keep satisfied. Group D: key player
- satisfying this group = IMP. - must be fully informed & satisfied
- must feel included +
power acknowledged (Eg, shareholders / employees)
(Eg, the media)
Y-AXIS = DEGREE OF POWER
Define ‘entrepreneur’
an individual who takes the initiative to plan + set up + operate a business,
taking on the risks and responsibilities associated with business ownership
Successful entrepreneurs are creative, innovative and passionate about their chosen business area.
Characteristics of a successful entrepreneur
Decisiveness
Risk-taker
Effective Communicators
Flexibility
Leadership
Innovative
Motivated
8 Opportunities for starting a business:
1) money
2) autonomy
3) challenges
4) passions
5) family ties
6) unfilled market opportunities
7) making a difference
8) not finding employment
6 challenges for starting a business:
1) lack of finance (for daily operations, can = bankruptcy)
2) lack of market research (overestimating potential market)
3) poor marketing strategy (lack of differentiation)
4) limited Human Resources (difficult to get skilled + experienced staff)
5) long hours (think they can do everything by themselves, doesn’t = long-term success)
6) lack of knowledge, skills and appearance
Define entrepreneurship
• The process of developing, organizing, and running a business to meet market needs.
• Involves taking financial risks to earn profit by bringing innovation or new ideas to the market.
