LO5

• Stakeholder - an individual or group who has an interest in a business and may be directly affected by the activities of that business. They can also influence a business’s decisions and processes.
• Internal stakeholder - an individual or group who are involved in a business directly by being or representing members of the workforce
• External stakeholder- a person or group of people with links to the business,
• Examples of internal stakeholders - customers, local residents, employees, trade unions
• Examples of external stakeholders- financial businesses, government, suppliers, customers,
• Mediator must remain impartial and focus on the immediate issues. They will need to

  • identify the facts
  • review the evidence
  • assess the impacts
  • agree the issues to be resolved based upon the main stakeholder objectives
• Conflict resolution- the methods a business may implement to resolve any major issues that affect the way in which business is performed
• A stakeholder analysis can identify the needs and wants of the stakeholder, which enables the business to understand them better, reducing any potential conflicts and resolutions.
• Owners (sole traders and partners, internal stakeholder) objectives

  • Sales
  • Profits
  • Market shares to be met
  • Business growth
  • Competitive prices
• Owners- actions to alter business behaviour

  • Boycott
  • End the business
• Trade Unions- organisations that represent you as an employee
• Employees and trade unions (internal stakeholder) objectives

  • want to keep their job and wages going up
  • Paid on time
  • conflict resolution
  • health and safety
• Employees and trade unions- actions and consequences

  • Increase in demotivated staff- leads to a decrease in sales and revenue as sales can't be made
  • Staff absence- leads to reduced output
  • Employees leaving- increase in costs due to recruitment and selection
  • Loss of customers- reduce incomes of business owners
• Shareholders and potential investors, (internal stakeholder)- objectives

  • Dividant
  • Voting rights
  • High share prices
  • High interest payments
• Banks and lenders(external stakeholder)- objectives

  • High interest payments
  • Business growth
  • Paid on time
• Customers (external stakeholders)- objectives

  • keep them satisfied so they come back
  • value for money
  • good quality products
  • choice
  • low and competitive prices
• Suppliers (external stakeholders)- objectives

  • care about their profits
  • want regular orders from the business
  • ethical work practices
  • competitive business
  • making a profit
• Local residents (external stakeholders)- objectives

  • protesting against the business
  • noise pollution
  • minimise traffic
  • job creation
• Pressure groups (external stakeholder)- objectives

  • campaigning- stop child labor, animal testing
  • ethical work practice
  • minimise pollution
• Central and local government (external stakeholder)- objectives

  • want revenue
  • perform better
  • want companies to do well
  • taxes
  • health and safety
  • compliance to legislation
  • supporting economic development
• Conflict management - it if can't be resolved it should be managed to minimise the impact on the business
• benefit of using crowd funding to finance a new business venture- good way to test the publics reaction to a new product
• Share issue- short term source of finance that is only available to limited companies
• Strike- withdraw by having a protest
• Stakeholder analysis- collecting information about a person that will impact the project
• Stakeholder conflict- the interests or goals of different stakeholders in an organisation are in conflict with one another
• Advantages of meeting stakeholder needs

  • runs smoothly
• Disadvnatages of meeting stakeholder needs

  • strikes
  • local residents kicking off
  • lower revenue, profit and sales
• consequences of failing to met stakeholder needs

  • lower profit
  • lower revenue
  • lower sales