U1- Stakeholders

Question 1

Name the 8 stakeholders covered in the higher course

Answer 1

Owner/ shareholder 
Community
Suppliers 
Government 
Banks
Customers 
Employees 
Managers

Question 2

What is the influence of the owner/ shareholder?

Answer 2

They can purchase more shares or sell them

Question 3

What is the influence of managers?

Answer 3

They make decisions on the future plans of the organisation

Question 4

What is the influence of employees?

Answer 4

They can affect the quality of a product or service by working hard, or not

Question 5

What is the influence of customers?

Answer 5

They buy the good or service/ do not if they are unhappy

Question 6

What is the influence of banks?

Answer 6

They chose whether or not to provide finance

Question 7

What is the influence of government?

Answer 7

Can alter legislation which affects the business

Question 8

What is the influence of suppliers?

Answer 8

They can alter the price of supplies

They can fail to deliver

Question 9

What is the influence of community?

Answer 9

Can petition the organisation to make a change to environmental policies

Question 10

Name 3 things shareholders want

Answer 10

Higher profits
Reduced cost
Higher dividends

Question 11

Name 4 things managers want

Answer 11

Reduced costs
Maintenance of cash flow
Higher profits
Lower borrowing costs

Question 12

Name 3 things the government want

Answer 12

Reduced pollution
Increased employment
Increased exports

Question 13

Name 2 things customers want

Answer 13

Reduced prices

High quality

Question 14

Name 1 thing the bank wants

Answer 14

Higher interest rates

Question 15

Name 2 things suppliers want

Answer 15

Price increase

Prompt payment

Question 16

Name 3 things employees want

Answer 16

Higher wages
No redundancies
Retained conditions of employment

Question 17

Give 2 examples where conflict of interest for stakeholders could arise

Answer 17

Higher profits for shareholders may mean no pay rise for employees

Employees may want a high wage for the work they do but the business owner might want to keep wage costs at a minimum

Question 18

Give 4 examples of stakeholder interdependence

Answer 18

Employees need the business to provide jobs/ business needs employees to do the work

Customers need the business to provide goods/ business needs the customers to make sales

Suppliers need the business to keep making purchases/ business needs the supplier to keep supplying

Government needs the business to provide jobs and pay tax/ business needs the government to ensure it can continue trading