LO1 F85W 34 - Stakeholders

7/27/2019 LO1 F85W 34 - Stakeholders

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http://www.bized.co.uk

Copyright 2007 Biz/ed

Meeting the Needs

of Stakeholders

BTEC Business


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What are Stakeholders?

Stakeholders are groups of peoplewho have an interest in a business

organisation They can be seen as being either

external to the organisation,

or internal But some may be both!


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Types of Stakeholder

Owners (I)

Shareholders (I)

Managers (I) Staff or employees (I)

Customers (E)

Suppliers (E)

Community (E) Government (E)

Investors (I and/or E)

I = Internal

E = External


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Internal and External

StakeholdersInternal stakeholders are those who are

members of the business organisation

Owners and shareholders and Investors

Managers

Staff and employees

External stakeholders are not partof the firm


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But..!

Some groups can be both internaland external stakeholders

Such as staff or shareholders(Investors)who are also local residents

Can you think of any others?


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Characteristics of

Stakeholders1. Owners and Shareholders

The number of owners and the roles they carryout differ according to the size of the firm

In small businesses there may be only oneowner (sole trader) or perhaps a small numberof partners (partnership)

In large firms there are often thousandsof shareholders or Investors, who each own asmall part of the business


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2. Managers:

organise

make decisions

plan

control

are accountable to the owner(s)

Characteristics of

Stakeholders


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Characteristics of

Stakeholders3. Employees or Staff:

A business needs staff or employeesto carry out its activities

Employees agree to work a certain numberof hours in return for a wage or salary

Pay levels vary with skills, qualifications, age,location, types of work and industryand other factors


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Characteristics of

Stakeholders4. Customers:

Customers buy the goods or services producedby firms

They may be individuals or other businesses

Firms must understand and meet the needs

of their customers, otherwise they will failto make a profit or, indeed, survive


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5. Suppliers:

Firms get the resources they need to producegoods and services from suppliers

Businesses should have effective relationshipswith their suppliers in order to get quality

resources at reasonable prices This is a two-way process, as suppliers depend

on the firms they supply

Characteristics of

Stakeholders


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6. Community:

Firms and the communities they exist inare also in a two-way relationship

The local community may often provide manyof the firms staff and customers

The business often supplies goods

and services vital to the local area But at times the community can feel aggrieved

by some aspects of what a firm does

Characteristics of

Stakeholders


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7. Example of a Stakeholder is theGovernment:

Economic policies affect firms costs (throughtaxation and interest rates)

Legislation regulates what business can do

in areas such as the environmentand occupational safety and health

Successful firms are good for governmentsas they create wealth and employment

Characteristics of

Stakeholders

Documents

LO1 F85W 34 - Stakeholders