Stakeholders

Stakeholders

1. A stakeholder is a person or a group who has an interest in a business.

2. Owner

   • Benefit; receive more money to further expand their business and invest in a range of products of a higher quality. By doing this they will expand their market and further increase their profit.
   • Lose; they wouldn't receive as much money which could lead to them having to close shops or shut down the business

3. Supplier

   • Benefit; if a business was making more money they would invest in buying more products. By doing this, suppliers would receive more orders and so profit.
   • Lose; a business may reduce the amount of orders if they aren't making enough money. So by doing this they won't be making as much profit.

4. Creditor

   • Benefit; the business would be able to pay off its loans quickly. Also they may be interested in taking more loans in the future to expand their business.
   • Lose; the business wouldn't be able to pay off its loans quickly and probably wouldn't want to take more loans in the future.

5. Customers

   • Benefit; the company may offer more sales and discounts as they would be able to afford giving these out. Also, the company may invest in a larger range of products at a higher quality.
   • Lose; the company may reduce the range of products and the quality of these may be reduced too to save money. Also if the business isn't doing well they could lose the place they normally shop which can be an inconvenience.

6. Employeees

   • Benefit; if the company is making a lot of profit they may give the customers a pay rise in order to get them to continue the work they have been doing.
   • Lose; they could become redundant or their pay may be reduced

7. Community

   • Benefit; if the business decided to expand they would offer more jobs to the local community
   • Lose; the business may make people redundant which could increase the amount of people seeking a job in the community

8. Customer service is any type of help where the employees provide a service to its customers. This can determine whether a business is successful or not. eg reputation

9. Profit = revenue - costs

10. A sponsorship endorses your products. Depending on the sponsors you can make a small amount of money or a large amount. For example you can receive a large amount of money from nike.