stakeholders Flashcards
Interest & Influence of Owners
Interest - profits in order to see a return on their investment
Influence - can invest more money 🤑; can make important decisions
Interest & Influence of Managers
Interest - may be given bonuses, pay rises 🥳 or promotions based on the organisation’s performance
Influence - can make decisions
Interest & Influence of Employees
Interest - want job security and perhaps a pay rise
Influence - can affect standard of work; can take industrial action
Interest & Influence of Customers
Interest - demand a quality product/service and value for money
Influence - can take their custom elsewhere; can spread good/bad word to others 💬
Interest & Influence of Suppliers
Interest - want continued business and the business to pay its debts
Influence - can change prices; can adjust the quality of supplies; can change account terms
Conflicting Stakeholders - Employees vs Owners/Managers
Conflict Example - employees want a pay rise, whereas owners want to maximise profits
*If employees get a pay rise it will lower the amount of profits the owner will receive
Conflicting Stakeholders - Customers vs Owners/Managers
Conflict Example - customers want low prices and value for money, whereas owners want to raise prices to maximise profits and meet their own objectives
*Low prices and high prices can’t both happen! 😲 So businesses and customers ‘meet in the middle’, known as the equilibrium price
Conflicting Stakeholders - Suppliers vs Owners/Managers
Conflict Example - suppliers want to be paid as soon as possible ideally in cash 💰, whereas the owners want trade credit to keep good cash flow in the business
*Suppliers and owners can also disagree on the prices of products, discounts, quality of supplies, delivery time and so on
Conflicting Stakeholders - Government vs Owners/Managers
Conflict Example - Government may want to introduce legislation to improve society, however owners may disagree with the legislation as it will impact negatively on their business 😨
*For example, the Government raising the minimum wage will lower the profits of a business as wage costs will increase
Interdependent Stakeholders - Owners/Managers & Governments
Interdependent Example - owners/managers need Governments to make good decisions, such as lowering taxes to improve the spending power of customers and therefore sales
While Governments need owners to create jobs 👷♀️
Interdependent Stakeholders - Owners/Managers & Suppliers
Interdependent Example - managers need suppliers to provide quality raw materials to improve the quality of the finished product
While suppliers need managers to keep buying from them and keep them in business 🤝
Interdependent Stakeholders - Owners/Managers & Customers
Interdependent Example - owners need customers to buy their products
Customers need a good quality of product and customer service from the owners of the business
Interdependent Stakeholders - Owners & Employees
Interdependent Example - owners need employees to perform their best ⭐ to increase sales and profits through work rate or customer service
While employees need owners to make good decisions to keep the business profitable and their jobs safe 🧷
Interdependent Stakeholders - Managers & Employees
Interdependent Example - employees and managers need to work together 💕 to help the business to succeed in order to keep their jobs secure
