Stakeholders And SWOT Analysis

Question 1

What is a stakeholder?

Answer 1

A person, group or organisation that has an interest in how a business is run and can influence the business

Question 2

What is conflict between stakeholders in terms of shareholders and employees?

Answer 2

-shareholders/wonders want high profits so they receive a high dividend whereas employees want high wages

Question 3

What is conflict between stakeholders in terms of managers and customers?

Answer 3

Managers want the highest profit possible on sales whereas customers want low prices for high quality goods

Question 4

What is conflict between stakeholders in terms of managers and suppliers?

Answer 4

Managers/owners may want to pay for goods later to improve cash flow whereas the suppliers will want payment as soon as possible to protect their own cashflow

Question 5

What is conflict between stakeholders in terms of managers and the local community?

Answer 5

The owners/managers may want to increase the size of a factory but the local community believes this may harm the local environment

Question 6

What is conflict between stakeholders in terms of shareholders and the government?

Answer 6

Shareholders want high profits but the government want legislation on minimum wage followed which could increase costs

Question 7

What does SWOT analysis stand for?

Answer 7

Strengths
Weaknesses
Opportunities
Threats

Question 8

What does strengths mean?

Answer 8

-areas that the organisation is performing well in or is good at
-e.g. availability of finance

Question 9

What is weaknesses?

Answer 9

-what the businesses is ineffective at that may harm
-e.g. lack of technology

Question 10

What is opportunities?

Answer 10

-factors outside the business that may help
-e.g. a competitor going bust, so the business could take its customers

Question 11

What is threats?

Answer 11

Factors outside the business that may harm
-e.g. a new competitor entering the market

Question 12

What are advantages of using SWOT?

Answer 12

-Identifies strengths and allows business to build upon them
-identifies weaknesses and allows them to be addressed and improved
-identifies opportunities and allows them to be exploited which could help the business become more profitable
-time it’s taken too analyse the businesses current position so no rash decisions are made

Question 13

What are disadvantages of using SWOT?

Answer 13

-a SWOT analysis is very time consuming which can slow down decision making
-produces a result that reflects the opinions of those who carry it which could lead to bias
-considers information which could become outdated quickly