Unit 1 - Stakeholders Flashcards
Who are internal stakeholders?
Employees, managers, shareholders, owners.
Who are externally stakeholders?
Customers, suppliers, bank, government.
What are shareholders interests?
What are shareholders influence?
What are shareholders impact?
Profits and dividends, increased share value.
Influence decisions, approve or deny decisions, put forward decisions.
Poor decisions = profit fall, less profit = increased dividends.
What are owners interests?
What are owners influence?
What are owners impact?
Improve profits.
Run business, invest more capital.
Change direction, find growth.
What are managers interests?
What are managers influence?
What are managers impact?
Good salary, job satisfaction, status.
Make day-to-day important decisions.
Poor decisions = profits fall, change direction.
What are employees interests?
What are employees influence?
What are employees impact?
Good salary, job satisfaction, job security.
Change work standard, industrial action.
Poor quality = poor satisfaction, reputations.
What are customers interests?
What are customers influence?
What are customers impact?
Best quality = low price, good customer service.
Reputation, buying and boycotting.
Lower profit, lower income, lower sales.
What are bank/lender interests?
What are bank/lender influence?
What are bank/lender impact?
Performance of business, stable cash flow.
Choose a loan/grant, alter ban repayment.
Too high interest = struggle to pay back = loss.
What are government interests?
What are government influence?
What are government impact?
Tax, performance = economy, follow law.
Legislation, issue bans, set tax rates.
More tax = less profit, change to fits law.
What are suppliers interests?
What are suppliers influence?
What are suppliers impact?
Prompt payment, ensure repeat customer.
Change prices, alter credit period, offer discounts.
Affects quality and production, affect profit.
What is stakeholder conflict?
Different stakeholders have different objectives. The interests of different stakeholder groups can conflict.
Give 3 shareholder conflict.
Owners generally seek high profits and so may be reluctant to see the business pay high wages to staff.
Managers may want to pay for goods later to improve cash flow whereas the suppliers will want their payment as soon as possible.
Managers want the highest profit possible on sales whereas customers want low prices for high quality goods.
What is interdependence of stakeholders?
All stakeholders want the business to succeed and are dependent on each other to make this happen. This intertwined creating interdependence.
Give 3 examples of interdependence of stakeholders.
Managers need suppliers to provide them with high quality stock when required and suppliers need managers to buy supplies from them to keep them in business.
Owners need employees to work hard for them to help satisfy customers and increase sales and employees need owners to provide them with fair wages and good working conditions.
Customers need owners to provide them with the goods and services they require, and owners need customers to buy their products.
