Flashcards in role and importance of stakeholders Deck (12):
what is a stakeholder?
any individual or group that has an interest in the activities or performance of an organisation
what are the 3 main internal stakeholders?
what are the 6 main external stakeholders?
why would expanding production be positive for employees?
they may get a pay rise if business becomes more profitable after expansion
why might cutting costs be a problem for shareholders?
shares will be worth less if costs are cut and therefore shareholders will get less capital
why would raising prices be a positive choice for creditors?
if consumers continue to buy, creditors may be payed back quicker due to more income from the business
what's an advantage of stakeholder mapping?
treat stakeholders accordingly so the business grows
what's a disadvantage of stakeholder mapping?
it's not hugely detailed or specific
what are the 3 internal factors that influence relationships with stakeholders?
management and leadership
the size of the business and the legal form
what are the 3 external factors that influence relationships with stakeholders?
the power of the various groups
what is the partnership approach?
this involves appropriate stakeholders in the decision making process. decisions are jointly made and implemented