UNIT 1: 1.4 Stakeholders

Question 1

Stakeholders

Answer 1

An individual or organisation with a vested interest in a Business

Question 2

Internal stakeholders

Answer 2

• employees
• managers
  -shareholders

Question 3

External stakeholders

Answer 3

• Customers
• Suppliers
• Government
• Banks & other creditors

Question 4

Stakeholder conflict example

Answer 4

staff want pay rise, owners want more profit (cant have both)

Question 5

Shareholders

Answer 5

Hold shares within a business, shareholders are stakeholders

KEY TIP: stakeholder is a much broader term that conveys many groups, including shareholders.

Question 6

Strategies for resolving stakeholder conflict

Answer 6

• Compromising
  e.g. a business aiming to reduce costs may close one of its factories IN STAGES rather than immediately, to allow workers time to find other jobs
  Consequence: business costs will fall more slowly

Arbitration- to resolve industrial disputes between workers and managers

Worker participation- to improve communication and decision-making, to reduce potential conflicts between workers and managers