Flashcards
3.2.3: Understanding the role and importance of stakeholders
Cards in this deck (12)
- 1Stakeholder:anybody affected by the business or has an effect on the business (Internal: within the business e.g. employees, External: outside the business e.g. customer)
- 2Conflicting Stakeholder Needs: (Internal: Employees)Expectations:
-good wages/salary
-job security
-other benefits
-safety and security within working conditions
-promotion
-bonuses
-strong working environment
Conflicts:
with owners/shareholders -> they want higher profits for higher dividends but employees want higher wages which increases costs and decreases profits and dividends - 3Conflicting Stakeholder Needs: (Internal: Shareholders)Expectations:
-high profits
-success (survival)
-dividend income
-a say in the running of the business
Conflicts:
-directors if they're not shareholders themselves
-government
-pressure groups - 4Conflicting Stakeholder Needs: (External: General Public)Expectations:
-consideration
-concern for the environment
Conflicts:
-Owners -> bad morals and poor CSR - 5Conflicting Stakeholder Needs: (External: Customers)Expectations:
-good customer service -> training and more people
-quality product
-fair price
-choice/range of products
Conflicts:
-Shareholders -> pricing & costs - 6Conflicting Stakeholder Needs: (External: Suppliers)Expectations:
-fair price
-prompt payment
-good relationship
Conflicts:
-Shareholders -> try to minimise price paid for lower costs and higher profits (higher dividend) - 7Conflicting Stakeholder Needs: (External: Government)Expectations:
-tax
-legislation
-employ people
Conflicts:
-Stakeholders -> greater costs means a profit impact (impacts dividends) - 8Stakeholder Mapping:a model that analyses the key stakeholders for a business based on their power over the business and interest in the business
- 9Stakeholder Mapping:Groups of customers
Individual customer - 10Why Stakeholder Mapping:to prioritise which relationships are most important to provide focus/direction for the business
- 11Influences On Relationships With Stakeholders:-law (health & safety planning, waste disposal, employment law)
-corporate social responsibility programme
-recession (shareholders/customers focus)
-times are good (focus on attracting and keeping good employees) - 12Managing Relationships With Stakeholders:Communication:
-advertising
-pricing offers
-email & social media
-in person (small stores/businesses
-newspapers
Consultation:
actively informing key stakeholder groups e.g. planning consultations with council/local residents
Benefits:
-gather views and opinions from stakeholder groups
-customer service
Information
- Description
- stakeholders, conflicts and mapping
- Created by
- Ashleigh-Jade Jones
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