Creating A Business 8 Stakeholders Flashcards Preview

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Flashcards in Creating A Business 8 Stakeholders Deck (19):
1

How can aims of stakeholders may be in conflict?

Stakeholders can have different aims and are as a result conflict can arise.

2

Give an example of an issue which may cause conflict between employees and stakeholders.

Wages - Owners want maximum profit and to do this they may pay lower wages but trade unions who represent the employees will try to keep them higher.

3

How could owners have conflict with producers?

The owners what to buy it at the lowest cost but the producers want to sell it at the highest. So they would have to compromise on the price.

4

What is a stakeholder?

A stakeholder is any person or group of people who have an interest in a business.

5

What can a stakeholder be classified as?

Internal or external.

6

What are internal stakeholders?

Members of the company or organisation.

7

What are external stakeholders?

People who have an interest in the business and it's activities but are not members.

8

Who are internal stakeholders?

Shareholders, managers and employees.

9

Why do shareholders have a stake in a business?

They are the ones that put the money into the business.

10

Why do the mangers have a stake in a business?

Their jobs depend on the success of the business.

11

Why do employees have a stake in a business.

Their jobs are on the line.

12

What are external stakeholders?

Customers, suppliers, local community, government, competitors, creditors and environmentalists.

13

Why do customers have a stake in a business?

They want to buy the product and if the business closed they would need to find a place to buy it.

14

Why do suppliers have a stake in a business?

If the business is successful then they are more likely to get more orders from them as a result.

15

Why do the local community have a stake in the business?

As they are the ones most likely to get employed.

16

Why do the government have a stake in the business?

The more successful the business the more tax it will pay.

17

Why do competitors have a stake in the business?

As the better the business is doing the more competitors have to d to keep up.

18

Why do creditors have a stake in the business?

They are owed money so if the business is doing well the sooner they will be paid.

19

Why do environmentalists have a stake in the business?

They want to make sure that the environment is safe and protect it from buildings.