Stakeholders and Decision Making Flashcards
What are 3 examples of internal stakeholders?
Owners
Shareholders
Employees
What are internal stakeholders?
People inside the business
Why are the owners a stakeholder?
Because they make a profit if the business is successful and decide what happens to the business.
Why are the shareholders a stakeholder?
Because if the business is a limited company, then the shareholders are the owners and want high dividends.
Why are the employees a stakeholder?
Because they are interested in their job security and also want to earn a decent wage.
What are external stakeholders?
People outside the business
What are 3 examples of external stakeholders?
Customers
Suppliers
Government
Why are customers a stakeholder?
Because they want high quality and services at low prices
Why are suppliers a stakeholder?
Because the business provides them with an income
Why is the government a stakeholder?
They get more in taxes when business makes good profits
What do businesses need to do with their stakeholders?
Keep them happy
Why is profit important for stakeholders?
Because it means employees are paid well, suppliers have reliable business and shareholders can expect dividend payments
What may the business choose to do to increase profit?
Cut Labour costs
What can cutting Labour costs do 3 types to stakeholders?
Make them unhappy - employees, suppliers and local community
What does stakeholder mapping consider?
Power and interest
