Stakeholders

1
Stakeholders
2
Stakeholders

• Stakeholders People/groups with an interest in
  the success of a business

3
Managers
Stakeholders include
Suppliers
Owners
Workers
Customers
Local Community
Pressure Groups
Government
4
Ownerspossibly shareholders

• Put money into the business so
• Want to make money from the business
• Interested in the company making a profit
• Want a good dividend
• Want their shares to increase in price

5
Managersare stakeholders

• They want the company to succeed
• Better chance of promotion
• Successful company may reward them by paying them
  higher salaries
• Giving them a bonus
• Better fringe benefits
• If company fails they could lose their job

6
Workersare stakeholders

• Want the company to succeed
• More likely to get better pay
• Chance of promotion
• Better facilities
• A failing company will
• Threaten their jobs
• Freeze their pay
• Possibly cut their wages

7
Suppliersare stakeholders

• Want the company to succeed
• More orders for them
• More success for their business
• Failing company
• Falling orders for them
• Less profit
• Job losses

8
Customersare stakeholders

• Customers have a stake in any business which they
  buy goods and services from
• They want low prices
• Best quality available
• Good service
• Innovative products

9
Business has an impact on the local area

• In the close vicinity of a business
• Creates jobs for people living locally
• The local area will suffer if a business fails
  and is a large employer
• Business might buy from local suppliers
• Provide a service to local people or businesses
• It could pollute the local environment

10
The Government is a stakeholder

• When a business succeeds
• Business pays taxes the more profit the
  business makes the more taxes it pays
• If a business fails
• Workers are made unemployed
• Government will have to pay them unemployment
  benefit

11
Group quick activity .
12
Stakeholderstask

• Identify as many stakeholders as you can for one
  of the following businesses
• Adidas
• Shell
• McDonalds
• National Trust
• Eddie Stobart Ltd
• Innocent Smoothies
• List them under the following headings
• Internal
• External

Group work. Students will find this tricky and it
may help to go through Adidas as a class. The
aim is to get students to apply the standard list
of stakeholders to the business in question. e.g.
An external stakeholder of Eddie Stobarts trucks
is other road users (congestion)

13
Stakeholderstask
Photo by Rodrigo Senna. Used with permission
Internal
External

14
Stakeholderstask
Photo by betablogga. Used with permission
Internal
External

15
Stakeholderstask
Internal
External

16
Stakeholderstask
Photo by Carl Spencer. Used with permission
Internal
External

17
Stakeholderstask
Internal
External

18
Stakeholderstask
Internal
External

19
Stakeholders

• Stakeholder objectives

20
Stakeholder objectivesexamples

• Customers value for money, good service, quality
• Owners/shareholders satisficing/maximising
  return on investment
• Managers status, performance bonuses
• Employees high wages, conditions of work
• Suppliers to sell a lot at a high price, repeat
  orders, customer loyalty
• Pressure groups to force a reduction of
  environmental impact

21
Stakeholders

• Stakeholder conflict

22
Stakeholder conflict

• Owner v customer Profit v service
• e.g. conflict over opening hours
• Shareholder v worker Profits v high wages
• Owner v management Divorce between ownership
  (profits) and control
• i.e. The owners have little power over managers
• Employer v employee
• Employees see their hard work reflected in higher
  profits for the employer
• Employers look for greater efficiency more
  output for lower costs

23
Your Individual task.

• Final task

24
Stakeholders task

• List five different stakeholders in your mini
  case study

Select two stakeholders and suggest the positive
and negative aspects of their relationship with
the business
Stakeholder 1
Stakeholder 2
Stakeholder 3
Stakeholder 4
Choose two other stakeholders and explain how the
closing of the business might affect them
Stakeholder 5

25
Homework.

• Revise for quick test for next lesson.
• Need to revise the theory covered on business
  legal structure
• Sole Trader
• Partnership
• Ltd
• Plc
• Franchise
• Not for Profit
• ..\..\new specs\AQA BS\Quick Legal Set Up Test.doc