1.5

• what is a stakeholder

  anyone who has an interest in the business
• what is an internal stakeholder

  people inside the business
• what are examples of internal stakeholders

  owners, management, employees
• what is an external stakeholder

  people outside of the business
• what are examples of external stakeholders

  customers, suppliers, local community, bank, government
• why does the owner have an interest in the business

  wants profits, a good reputation and the potential to grow the business
• why does a manager have an interest in the business

  wants good salaries, recognition for achieving targets and career success
• why does an employee have an interest in the business

  wants good working conditions, a decent wage and job security
• why does a shareholder have an interest in the business

  wants a return on investment in dividend payouts
• why does a supplier have an interest in the business

  wants to sell their products at the highest price and be paid on time
• why do customers have an interest in the business

  want to buy quality and reliable goods and services at the lowest price
• why does the local community have an interest in the business

  wants local investment, jobs and limited pollution
• why do the government have an interest in the business

  wants low unemployment, competitive markets and businesses to operate within the law and pay taxes
• why does the bank have an interest in the business

  want to lend money to businesses with limited risk of losing it
• why do pressure groups have an interest in the business

  want to ensure businesses are acting ethically and are not polluting the environment
• stakeholders can influence the business or be influenced by the activities of a business
• how do owners influence a business

  make decisions that influence the success of their business
• how do employees influence the business

  by providing excellent customer service which helps to boost the reputation of the business
• how can suppliers influence the business positively

  by supplying the business with goods of high quality which can lead to repeat purchases by the business's customers
• how can suppliers influence a business negatively

  if supplies are poor quality customers may choose to buy goods elsewhere so the supplier and business lose custom
• what is stakeholder conflict

  disagreements between stakeholders
• why does stakeholder conflict occur

  stakeholders do not always make decisions which are in the best interest of the business instead they often aim to satisfy their own interests
• what is an example of stakeholder conflict

  the owner of business may want to pay it's employees the lowest wages in order to keep costs down however if workers are payed less they are more likely to be dissatisfied which might lead to low productivity, poor quality of work and resignations
• what is e-commerce

  buying and selling goods and services online
• what are some positives of e-commerce

  • can sell at any time of day so they can make continuous sales
  • can attract new customers form around the world
  • created a larger marketplace for businesses which helps increase sales
• technology has introduced new payment systems
• what is a payment system

  the electronic ability to transfer money quickly and safely from one bank account to another
• what are some examples of payment systems

  pay pal, google pay, Apple Pay
• e-commerce is more convenient for customers as they can buy online at home and have it delivered to their house in a very short period of time
• how does technology help to reduce business costs

  • no need for a physical premises as business can be ran from anywhere
  • creating a website and PayPal account is cheap and simple so no technical staff need to be hired
  • technology reduces the need for old machinery and some staff (e.g amazon warehouses rely on robots)
• businesses now use digital communication - emails, texts and websites - to communicate with different stakeholders which is quick, cheap and efficient
• how has technology influenced products

  • some goods revolutionised industries e.g digital photography and instagram
  • some services were created because of advances in technology e.g uber
• businesses have to keep innovating goods and services in order to keep up with technology and consumer demand
• before e-commerce shops had restricted opening hours but websites are open 24/7 so websites are becoming the new 'place' to trade
• technology has delivered more efficiency in cost and time so some businesses are able to reduce the cost of goods
• customers can now compare prices using price compare websites which has encouraged businesses to lower prices to stay competitive
• technology has made promotion quicker and cheaper for many businesses due to advancements in communication
• social media has provided an effective way of promoting goods and services via online campaigns
• viral marketing encourages consumers and the public to use social media to share information about a business's goods and services
• what is legislation


  laws set by the government