Chapter 1.6 Test. Flashcards
What are the four main stakeholders?
Customers, Suppliers, Competitors and Interest groups.
Customers.
To ensure a successful business in the future a business needs to recognise the changes in the tastes of customers and make changes where it is necessary to satisfy their needs and wants.
Suppliers.
A businesses’ suppliers provide the resources that the business needs to manage its operations. Suppliers can be individuals or organisations. Good relationships with suppliers are important to guarantee the efficient running of the business. Businesses prefer to have a number of suppliers because it means that they are less vulnerable to experiencing difficulties and the impact of price rises.
It is important for a business to develop a reliable network of suppliers.
Competitors.
Competition is rivalry among businesses that seek to satisfy a market. Competitors are businesses that offer rival products or services. Competition can stimulate greater efficiency in production and this usually results in a better quality product or service at the lowest cost to the business. A business needs to respond to any change in the actions of its competitors.
Interest groups.
Interest groups attempt to directly influence or persuade an organisation to change its policies.
What are the three most common interest groups?
Trade unions, consumer groups and Specific issue groups.
Trade Unions.
Employees may join this group in an attempt to improve their pay and conditions.
Consumer groups.
These groups are lobby groups that monitor a business’s performance. Such as product safety, packaging, pricing and advertising.
Specific issue groups.
These groups combine to focus on one specific area such as youth unemployment, social justice, civil liberties, anti-globalisation or environmental protection.
