3.1.4 Stakeholders

Worksheet

From AQA

• Main stakeholders of businesses

• Objectives of stakeholders

• Impact of business activity on stakeholders

• Impact and influence stakeholders have on businesses

Lesson objectives

• Students should be able to:

1. understand what is meant by a stakeholder and who the main stakeholders of a business are

2. understand stakeholders’ main objectives

3. understand the impact and influence stakeholders have on businesses and their objectives and how businesses may face conflict between stakeholders

Starter• Who is interested in how your exams / life

goes?

• For example; school, your form tutor..

• These are all stakeholders in your life

What is a stakeholder?

• A stakeholder is defined as anyone who has an interest in a business and is affected by the actions of the business

3 Things a business stakeholder is NOT about….

MAIN STAKEHOLDERS OF BUSINESSES

Owners

• Role; to start and run a business to make a profit

• Objectives; to get a good return on any money they have invested in the business

• To make a profit

• To survive

Owners

• The owner is the person (or persons) who started the business with their own money

• In an older business this may mean a relative of the original owner

Watch the video – who is the owner

of JCB

Owners are interested in - if the business will make a profit

Employees

• Role; to work in a business in return for wages

• Objectives; To have job satisfaction, to have job security so they can pay their bills, to get promoted

Employees

• Employees work inside the business

• They are interested in the business – they want to know if they have job security so they can pay their own bills

• They are also interested in – if there are job promotion prospects

Customers

• Role; to buy goods or services from the business

• Objectives; to get a good choice of goods or services, to get value for money, to get quality products at low prices, to have the opportunity to buy innovative products

Customers• Customers are interested in the business

because they want to know they can get quality products and services at low prices

• Customers want products and services that satisfy their needs

• Customers want to know their favourite products will continue to be sold

The local community

• Role; For those who live near a business who may be affected by its operations

• Objectives; They want the business to provide jobs, they want the business to operate in an ethical way, they may also want them to buy from local suppliers and to not pollute the local atmosphere

Local community• The local community are interested in the

business because it may pollute the environment, it may cause noise with lorries loading

• The community may not want the business to open as it may harm local business trade

Watch the video see

if you can identify

why the locals are

against Tesco

opening

Suppliers

• Role; to provide the business with goods or services that they might need

• Objectives; they want to charge high prices to make a profit, they want customer loyalty with repeat orders, they also want payment on time, they may also want larger orders

Suppliers

Suppliers are interested in the business because they want to know if they will get paid for the goods and services they have provided

Suppliers are also

interested in knowing

if they will get more

business from the

company

IMPACT OF BUSINESS ACTIVITY ON STAKEHOLDERS

How stakeholders are affected by business activity

• Business starts a new marketing campaign –more work for the employees, new targets for the managers

• Business starts to sell more goods abroad –more tax for the government and new export laws to adhere to

How stakeholders impact business activity Answers on

next slide

IMPACT AND INFLUENCE STAKEHOLDERS HAVE ON BUSINESSES

Possible conflicts between stakeholder groups

• Shareholders and owners want profitEmployees want higher wages – where is the conflict?

Managers want big bonuses – where is the conflict?

Customers low prices and high quality – where is the conflict?

Local communities want lower pollution levels – where is the

conflict?

Suppliers want to charge high prices for goods and

services they provide the business with – where is

the conflict?

• Employees want higher wages but owners and shareholders don’t want to pay higher wages, as this will raise costs and therefore impact profit

Possible conflicts between stakeholder groups

• Mangers want big bonuses but owners and shareholders don’t want to pay them as this will impact costs and lower profits

Possible conflicts between stakeholder groups

• Customers want low prices and high quality, but owners and shareholders want high profit so want to charge high prices and quality costs so may also have an impact on profit

Possible conflicts between stakeholder groups

• Local communities want lower pollution levels, but owners and shareholders want high profits and reducing pollution will raises costs and so may lower profit

Possible conflicts between stakeholder groups

• Suppliers want to get good prices for their goods and services, owners and shareholders want high profits and want to keep their costs low

Possible conflicts between stakeholder groups

Sample questions

Sample question 1

Answer question 1

Case study for sample question 2

Sample question 2

Answer question 2

Answer question 2 continued

Revisionstation

Written by Sarah Hilton ©