business decisions and stakeholders
Learning Objectives:
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Specification:
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Question: What is a stakeholder?
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Key term: STAKEHOLDER - an individual or a group which has an interest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful.
Owners - they want the business to be successful. Usually, success means how much money the owners can make from the business. How much profit is the business making? How much income can the owners pay themselves through owning the business. Can the owners sell the business for more than they invested in it?
Managers - they want the business to be successful. If it is not, they could lose their job. However, they are also interested in their own rewards. They want a large salary and potentially other benefits like a company car. As long as the business is profitable and doing well, they might be more interested in their own rewards rather than maximising profit for the shareholders.
Workers - they want the firm to be successful so that they keep their job and get regular pay rises. They want good working conditions and a generous holiday entitlement. These however, mean more costs for the business and lower profits. Their objectives might conflict with the owners.
Customers - they are important stakeholders. They want a good, reliable, quality product at a fair price. The business will expect their customers to pay on time for the service provided.
Suppliers - they want the business to do well so that they can continue to be paid by them for the good or service that they provide.
Government - central government collect taxes from businesses and also pass laws that businesses have to abide by on issues such as employment and equal opportunities. Local government also impose Business Rates on a company. Government agencies like the Health and Safety Executive monitor and inspect businesses to ensure that they don't break the law.
The Local Community - a business provides jobs for the local community. It also provides a service that people want. They don't however, want the business to cause pollution or any other inconvenience to the local area (e.g. delivery vans, noise, waste).
Question - Can you think of any more?
Conflicting Objectives
Businesses are constantly making decisions. However, each decision has different impacts on stakeholders. Some decisions benefit some stakeholders, other benefit other stakeholders. Explain which stakeholders are affected by the following scenarios and why.
stakeholders_and_conflict_worksheet.docx | |
File Size: | 14 kb |
File Type: | docx |
task__bestco_stakeholder_activity_1__1_.docx | |
File Size: | 17 kb |
File Type: | docx |
bestco_meeting.docx | |
File Size: | 23 kb |
File Type: | docx |