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Flashcards in role and importance of stakeholders Deck (12):
1

what is a stakeholder?

any individual or group that has an interest in the activities or performance of an organisation

2

what are the 3 main internal stakeholders?

employees
managers
owners

3

what are the 6 main external stakeholders?

suppliers
society
government
creditors
shareholders
customers

4

why would expanding production be positive for employees?

they may get a pay rise if business becomes more profitable after expansion

5

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

6

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

7

what's an advantage of stakeholder mapping?

treat stakeholders accordingly so the business grows

8

what's a disadvantage of stakeholder mapping?

it's not hugely detailed or specific

9

what are the 3 internal factors that influence relationships with stakeholders?

business objectives
management and leadership
the size of the business and the legal form

10

what are the 3 external factors that influence relationships with stakeholders?

market conditions
the power of the various groups
government policy

11

what is the partnership approach?

this involves appropriate stakeholders in the decision making process. decisions are jointly made and implemented

12

define stakeholder mapping

this involves placing stakeholders into a matrix with their position dependent on their relative power and interest in relation to a particular project being undertaken by a business