Stakeholders and their influence

• Primary sector?

  Businesses that extract natural mining resources that can them be used by others to produce resources. EG: farming, fishing etc
• Secondary Sector?

  Businesses that turn raw materials into finished goods or components. Value is added through the manufacturing process.
• Tertiary Sector?

  Businesses that provide services to individuals (BSC) or to other businesses (BSB). EG: banking, retail, telecommunications.
• Quaternary Sector?

  Businesses within the tertiary sector, that specialise in knowledge. EG consultancy, research and development, libraries and computing programmes.
• Scope?

  Business activity refers to the scale or the range on which it operates.
• Local Scope?


  Sells within a small geographical area. EG: Town or County
• National Scope?

  Sells across the whole of a country. EG: has stores across the UK
• International Scope?

  Sells or operates in multiple countries. EG: Across Europe
• Size?

  Size of a business refers to the number of employees.
• Micro?


  Up to 9 members of staff.
• Small to Medium Enterprises (SMES)

  Small: between 10-49 staff Medium: between 50-249 staff
• Large?


  More than 250 staff.
• Business Purpose?

  To make a profit, To provide goods and services to customers, To expand, To create job opportunity, Fufil customer needs so you can make a profit, Help people in need.
• Reasons for Success?

  Type of business(profit or not for profit), Clarity of vision, Research and Development- Innovative products and services, Employee involvement and low staff turnover, Corporate social responsibility(CSR), Funding and Market activities.
• What is a Stakeholder?


  Anyone who has an interest in a business.
• Two types of Stakeholder?

  Internal and External
• Internal Stakeholders?

  Employees, Owners, Managers.
• External Stakeholders:

  Suppliers, Pressure Groups, Customers, Competitors, Debtors, Lenders, Communities, Trade Unions, Interest groups and Government agencies and department.
• Influences on Stakeholders

  Leadership Style, Mission and Objectives including; Financial, Social, Ethical and Environmental, Stakeholder power and interest, Market conditions(including competition), External influences( e.g. legislation) and business ownership.
• Communication(Managing a relationship with different stakeholders)

  Keep informed, Two way as well as one way, Involves third parties e.g. trade unions, pressure groups and experts.
• Consultation(Managing relationships with different stakeholders):

  Share proposals and seek opinions early in the decision making process.
• What is Stakeholder Mapping?

  Stakeholder Mapping shows the relative power of each stakeholder group against the degree of interest. This informs managers on how important each stakeholder group is and therefore how involved they should be in the decision making process.
• Communication?

  Communication is the sharing of information. To be effective, it must be to the right people, at the right time and in a format that is understandable. Barriers to communication can include information overload, jargon and the use of inappropriate methods.
• Written Presentations?

  These are used for a variety of business communications; Financial records e.g. annual accounts and explanations of the accounts, budgets and forecasts. Non financial records e.g. output figures, labour productivity or performance such as days off, quality control such as number of faults and customer satisfaction.
• Formal or Informal?

  Formal-professionally produced documents possibly following standard formats and using technical business language. Informal- Shared in a less formal way with less technical language or procedures.
• Examples of Written Presentations:

  Reports, Letters, Written Feedback, Newsletter, Memos, Emails.
• Benefits of Written Presentation:

  Provide a permanent record, Can be read later, Allows for later detailed information to be presented, Can add explanations to complex data.
• Drawbacks of Written Presentations:

  Can be time consuming especially is formal, Can cause information overload.
• What is an Oral Presentation?


  Computer projection such as a PowerPoint presentation. These are likely to be combined with written presentations e.g. speaker notes or printed handouts.

  Less formal oral presentations may use flipcharts, be written on boards or just spoken.
• How can oral presentations can be used in businesses?

  1. Brief Staff
  2. Inform Shareholders on performance at an AGM
  3. Discuss Changes with key stakeholders e.g. community meetings
• Benefits of Oral Presentations:

  • Can reach a larger audience at one time
  • Allows for a two way communication and clarification
  • Can be visual and interactive
  • Easier to convey enthusiasm and emotion
• Drawbacks of Oral Presentations:

  • Cannot provide too much information or they will be ineffective.
  • Success depends on skill of the presenter
  • Difficult to re-visit information unless a record e.g. notes
• Why is communication vital to business success?

  • Ensures employees understand their roles
  • Motivates managers and employees
  • Informs customers
  • Keeps investors up to date with performance
  • Working with suppliers
  • Supporting the community
• Why is communicating with customers crucial?

  Viral Marketing:

  Use of social media networks to encourage the spread of promotional activities and increase brand awareness. Use blogs and online forms.

  Virtual Communities:

  Online review sites and Discussion forums for specific interest groups.

  These can contribute to success by:

  • Reaching a wider market
  • Build trust
  • Gain brand recognition
• What are the Organisational Structures?

  • Tall/Hierarchal Structure
  • Flat Structure
  • Matrix Structure
  • Centralised or Decentralised Structure
• What role do managers play in a business?

  Managers coordinate resources, expertise, and experience, making tactical and strategic decisions.
• How do employees influence business success?

  Employees impact productivity and efficiency at work and can resort to industrial action regarding pay and working conditions.
• What is one of the key roles of owners in a business?

  Owners make strategic decisions and investments in the enterprise.
• How can suppliers affect a business's production?

  Suppliers can affect production through the quality and reliability of their products, and their flexibility can influence pricing.
• What factors contribute to customer loyalty and repeat purchases?

  Customer loyalty is influenced by repeat purchases, positive word of mouth, promotions, and social media activities.