UNIT 1.4 Stakeholders

Question 1

What are stakeholders?

Answer 1

they are individuals or groups of people who are affected and have a vested interest on what the business does and how well it preforms.

eg: employees, suppliers, lenders, shareholders

Question 2

What are Internal Stakeholders?

Answer 2

individuals or groups of people within the organization and interested in the businesses operations and decision making

eg: managers, directors, employees and

Question 3

What are External Shareholders?

Answer 3

individuals or groups of people who are not within the organization but have a a direct interest in its actions and performance.

eg: customers, suppliers, lenders, the government, financiers

Question 4

State 3 Stakeholder conflicts

Answer 4

E: employees may demand higher wages which can decrease shareholder profit

S: Senior managers may demand higher bonuses, effecting shareholder dividends/ profit

E: Employees may invest in new technologies to improve efficiency, causing job redundancy’s