Any individual or organisation who has an interest or are affected by the activities and decisions of a business.
What are primary stakeholders?
Directly related to the business e.g. customers.
What are secondary stakeholders?
Affected by the actions of a business but are not directly related e.g Government.
What is stakeholder mapping?
Maps the relative power of each stakeholder group against the degree of interest.
Helps inform managers on the importance of each group and how involved they should be in the decision-making process.
High level of interest/high level of power- manage/engage with them closely.
low level of interest/high level of power- keep them satisfied.
High level of interest/low level of power- keep informed/communicate regularly.
Low level of interest/low level of power- monitor.
What is a business?
An organisation that exists to provide goods and services on a commercial basis to customers.
What are goods?
Physical or tangible products, e.g. Industrial electronics.
What are services?
Intangible products e.g. dental services.
Why do businesses exist?
They are formed by entrepreneurs and our subsequently developed if they managed to get through the survival stage. Profit is a key motive for entrepreneurial activity.
