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Flashcards in Stakeholders Deck (20)
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1
Q

what is a stakeholder?

A

A stakeholder Is an individual or group of people who have an interest in the success of an organisation.
Stakeholder do not have to be financially involved with a business [do not mix them up with shareholders], they just have to be remotely concerned with the business.

2
Q

what can a stakeholder be?

A

Stakeholders can be internal (from within the organisation) and external (come from out with the organisation).

3
Q

what kind of people are interested in stakeholders?

A
  • Employees
  • Customers
  • Owners/shareholders
  • Managers
  • Local community
  • Taxpayer
  • Local/national government
  • Suppliers
4
Q

what is a stakeholders influence/interest?

A

As well as being interested in a business, stakeholders can also influence a business by the decision/actions they take. This can have a positive or a negative effect on the business.

5
Q

what is the shareholders interest in a business?

A

Interested in high profits to receive high dividends.

6
Q

what is the shareholders influence on a business?

A

Can invest more/less money depending on dividend returns.

7
Q

what is the managers interest in a business?

A

Interested that the organisation does well so that they receive yearly bonus.

8
Q

what is the managers influence on a business?

A

Have control over a lot of decisions that can affect business success.

9
Q

what is the employees interest in a business?

A

Interested in job security, good working conditions and fair play.

10
Q

what is the employees influence on a business?

A

Can take industrial action if unhappy. Business will lose money while this takes place.

11
Q

what is the customers interest in a business?

A

Interested in getting high quality products at fair prices.

12
Q

what is the customers influence on a business?

A

Can take their custom elsewhere and can spread good/bad reputation.

13
Q

Shareholder Vs Customers conflict?

A

shareholders want to maximise profits. Customers want a quality products for low prices.

14
Q

Shareholder Vs Employees conflict?

A

Shareholders want to pay as low a wage as possible so that profit is high whereas employees want high wages for their work.

15
Q

Shareholders Vs Suppliers conflict?

A

Suppliers want to be paid as soon as possible, whereas shareholders want to buy on credit to ensure good cash flow.

16
Q

Why does a stakeholder need another stakeholder?

A

One cannot survive without the other, so they need to work together if the business is to succeed. They can rely on one another to achieve their interests. This is known as interdependence

17
Q

owners & suppliers interdependence?

A

Managers need supplies to provide high quality materials to ensure a high-quality end product. Suppliers need managers to keep buying from them to keep them in business.

18
Q

owners & employees interdependence?

A

Owners need employees to perform their best to increase sales and profits through work rate and customer service. Employees need owners to make good decisions to keep the business profitable and jobs safe.

19
Q

Owners & Customers interdependence?

A

Owners need customers to buy them their product and customers need good quality products and customers service from the owners of the business.

20
Q

managers & employees interdependence?

A

Employees and managers need to work together to help the business succeed in order to keep their job secure.