1. Business Stakeholders

• Stakeholders are people or groups of people that influence the way a business operates
• Stakeholders


  • Shareholders
  • Employees
  • Customers
  • Managers
  • Suppliers
  • Local community
  • Pressure groups
  • Government
• Shareholders


  • Have invested money into the business to buy shares in it
  • Expect a return on their investment - objective is to make money through a share of the profits (dividends) and selling their shares once their value has increased
  • Might have voting rights depending on how many shares are held
• Employees


  • Key stakeholders because they're actually doing the work
  • The way they are treated will influence how they perform
  • Main objectives are to get best possible pay, have promotion opportunities, training, motivation, rewards and job security
• Customers


  • Key stakeholders because they buy a business' goods and services
  • Have a direct influence over the business' revenue and profits
  • Objectives are to get the best quality product or service and get the best value for their money
  • Interested in product quality, ethics, price, and want the business to survive
• Managers


  • Senior employees in a business who oversee groups of employees
  • Make sure that employees work well and job gets done
  • Main objectives are to ensure the success of the business so they get paid and have job security
• Suppliers


  • Provide goods and services to the business (e.g. materials, I.T. etc.)
  • Objectives are to increase their sales and profits, encourage repeat business, and grow their business
  • Want regular orders, to be paid on time, and given fair treatment
• Local community


  • The people who live and work in the area around a business
  • Main objective is to look after their area and the people in it
  • Want the business to attract tourists/other businesses and create jobs, but not cause issues like noise or pollution
• Pressure groups


  • Groups of people who put pressure on government or business to influence them over a particular cause
  • Objectives are varied depending on their cause, but they're all looking for a change in something
• Government


  • Have a large influence over businesses through legislation, regulations, tax rates, and managing the economy
  • Main objective is to grow the economy and increase employment
  • Wants tax revenue, businesses to be successful, follow laws and treat stakeholders fairly
• Business doing well


  Stakeholders keep buying their materials from us
• Business not doing well

  Job might not be secure
• Business thriving in the U.K.


  Helps grow the economy and decrease unemployment
• The relationship between stakeholders and businesses is important to business success
• Stakeholders can have an impact on each other, positively and negatively
• There will sometimes be conflict between stakeholders as they have different objectives e.g.
• Manager wants to raise prices to maximise profits


  Customers won't want to pay more for their goods
• Shareholders want all the profits shared between them


  Owner wants to reinvest some profits back into the business
• Owner wants to pay lower wages to reduce costs


  Trade unions representing the employees disagree
• Supplier wants to make maximum profits


  Owner wants a discount from suppliers to maximise profits