Business stakeholders

• Internal stakeholders

  • shareholders/owners
  • managers
  • employees
• External stakeholders

  • customers
  • Local community
  • government
  • suppliers
  • banks/investors
• Factors that affect how many stakeholders a business has and the strength of their interest and influences on business

  • size and scale of business
  • of product/service
• objectives of shareholders/owners

  • good return in investments
  • high levels of profits
  • success in growth of business
• objectives of managers/employees

  • job security is good/working conditions
  • promotion opportunity
  • rewards
• objectives of customers

  • value of money
  • product quality - customer satisfaction
  • good customer service
• objectives of suppliers

  • financial stability
  • continued profitable trade with business
• objectives of banks/investors

  • profitable and cash flow
  • growth in profit
• objectives of government

  • creating jobs - succeeding and growth
  • payment of taxes
• objectives of local community

  • success in business
  • compliance (following) with local laws - pollution, noise
• objectives of competitors

  • profitability and success for business
  • increase in market share
• stakeholders can influence a business by:

  • negotiation
  • direct action
  • voting
• conflict amongst stakeholders

  • investing in new machinery to achieve better efficiency
  • extending products into mass markets to increase sales and profit for shareholders
  • short-term thinking by managers and maximise profit today
• What is a stakeholder?


  those who have an interest/effected by the way a business is operated
• What is an external stakeholder?


  groups or individuals from outside a business who have an interest in it
• What is an internal stakeholder?


  groups or individuals from inside a business who have an interest in it.