stakeholders Flashcards
what is a stakeholder
individuals or groups affected by a business and its decisions
what are internal stakeholders
employees who are affected by the decisions made by the business in terms of salaries and wages, recruitment policies and job security
why are suppliers an external stakeholder of a business
affected by decisions made by a business in terms of order quantities and payment terms
why are communities an external stakeholder of a business
affected by decisions made by a business in terms of local jobs and traffic congestion in residential areas because of deliveries
why are customers an external stakeholder of a business
they are affected by decisions made by the business in terms of products and services sold and prices charged
what are the two ways in which businesses can manage their relationship with stakeholders
communication
consultation
how can communication be used between businesses and their stakeholders
share information
through methods like email and newsletters
so stakeholders can remain informed of developments within the business
how can consultation be used in relationships between stakeholders and a business
used to investigate views and feelings of stakeholders so they feel involved in any business decisions
the business defines the stakeholders influence so their power to change decisions is limited
what’s a stakeholder map
can be used to display the relative power and interest of different stakeholder groups
what are the different categories of stakeholders on a stakeholder map
high power high interest
high power low interest
low power low interest
low power high interest
what must happen to stakeholders with high power and high interest
need to be managed closely
consultation may be appropriate for these stakeholders
what must happen to stakeholders with high power low interest
need to be kept satisfied
have power to influence the business if they become dissatisfied
what needs to happen to stakeholders with low power low interest
need to be monitored
though they lack influence and interest in many business decisions
what should be done with stakeholders who have low power high interest
need to be kept informed
consultation may be appropriate
an example of stakeholders with a high power
morrisons shareholders can vote at AGMs
have high interest -they receive dividend payments
morrisons must manage relationship closely
