Chapter 1

Chapter 1

1. What is a Stakeholder?

   • Someone who's is interested in a business.

2. All 6 Stakeholders

   • Creditors, Employees, Suppliers, Customers, Local Community and Owners or Shareholders.

3. Why each Stakeholder is interested in the success of the business...

   • Customers care if the business make money because if they do, they could bring down some of their prices on products. This is good for them, the customers as they can get products cheaper. Customers also care if the business doesn't make enough money because then the company cannot afford to lower prices on products, have regular discounts on products.
   • Suppliers care if the business does well because if they do the business can continue to buy stock off them. They also care if the business does badly because if they're they cannot afford to buy as much stock off them or any at all.
   • Creditors care if the business make money because if they do, they can be paid back what they're owed. They also care if the business does badly because if the company doesn't make enough money they cant be paid back.
   • Local Community care if the business does well as they can get products cheaper when their doing well, have discounts on products as the company can afford to do it. The Local Community care if the business is doing badly as the shop could go bankrupt or the price's on products could be raised again to original price.
   • Owners care if the business does well because they earn more money out of total profit. They also care if the business does badly because they could go bankrupt or shut down.
   • Employees care if the business does well because if its doing well they could get a pay rise depending on if they have worked hard enough. They also care if the business is doing bad because if the company is doing that bad they could lose their job as a result of how bad the company is doing.

4. What is a Creditor?

   • A person or organisation that are owed money by the business.

5. What is a sponsorship?

   • A way of publicity a business by giving money for a sporting or special event in exchange for publicity or some sport.

6. What is revenue?

   • Money coming into the business from sales.

7. How to calculate profit?

   • Profit = Revenue - Costs

8. What is customer service?

   • This covers all aspects of how the customer is dealt with by the business. There may a special department that deals with customer queries or problems.