Download Stakeholders refresher - GCSE

Learning Aim: To understand business decisions and stakeholders.
A*
A
B
C
Evaluate how stakeholders could influence a businesses
decisions
Assess the conflicts that may occur between the stakeholders
Discuss why a stakeholder has an interest in a business
Identify who stakeholders are
Climbing the ladder to success.
A stakeholder is an individual or a group which has an interest in and is affected by the
activities of a business; stakeholders have an interest in how the business operates and
whether or not it is successful.
Who are the stakeholders?
Business owners
Other external groups
(e.g. pressure groups)
Shareholders
Managers & employees Competitors
The media
Customers
Banks and other
Suppliers
finance providers
Government
Local community
What stakeholders are interested in?
Stakeholder
Shareholders / Owners
Managers & Employees
Customers
Suppliers
Banks & other finance providers
Government
Local community
Mainly interested in…
Return on investment + profits and dividends
Success and growth of the business
Proper running of the business
Rewards, including basic pay and other financial incentives
Job security & working conditions (e.g. holidays)
Promotion opportunities + job satisfaction & status – motivation, roles and responsibilities
Value for money
Product quality & customer service
Continued, profitable trade with the business
Financial stability – can the business pay its bills?
Can the business repay amounts loaned or invested?
Profitability and cash flows of the business
Growth in profits and value of the business
The correct collection and payment of taxes (e.g. VAT, Income Tax)
Helping the business to grow – creating jobs
Compliance with business legislation
Success of the business – particularly creating and retaining jobs
Compliance with local laws and regulations (e.g. noise, pollution)
Who are the stakeholders of Beauchamps?
 A*: Evaluate how these
stakeholders can affect the
schools decision making
 A: Assess any conflicts that
may occur
 B: Discuss why they may have
an interest in the school
 C: Identify the stakeholders
of Beauchamps
Climbing the ladder to success
Essex
County
Council
Nonteaching
Staff
Local
Community
Students
Governors
Stakeholders
of
Beauchamps
Competitors
Teachers
Parents
Potential conflicts between stakeholders
Business Decision
Supported By?
Opposed By?
Cut jobs to reduce costs
Shareholders
Banks
Management
Customers &
suppliers
Customers
Shareholders
Employees
Local community
Local community
Add extra shifts to increase
factory capacity
Introduce new machinery to
replace manual work
Increase selling prices by 10% Shareholders
to improve profit margins
Management
Employees
Customers
Scenario
Stakeholders supporting
Government has decided to make cuts
in funding to education
Government
The governors have mad e a decision
Government
to reduce teacher pay in order to spend
the money elsewhere in the school.
(For example educational visits to bring
the curriculum to life)
The school have made a decision to cut
lunch breaks from one hour to half an
hour to save teaching hours and pay
Teachers strike for additional pay.
Stakeholders Opposing
Potential conflicts between the stakeholders at Beauchamps
 A*:Evaluate how these
stakeholders could influence
the schools decisions
 A: Assess any conflicts that
could occur between these
stakeholders
 B: Discuss why these
stakeholder have an in the
school
 C: Identify potential conflicts
between the stakeholders of
Beauchamps
Climbing the ladder to success
Look at the following statements referring to stakeholders and write
down which groups of stakeholders it affects.
Statement 1:
A decision by those who run the
business to introduce a system for
monitoring the amount of
pollution that it creates.
Statement 2:
A decision is taken to switch the
sourcing of raw materials and
components from the UK to a firm
in Malaysia which reduces costs
and boost profits.
Statement 3:
A decision is made to cut cost by
restructuring the business which
results in redundancies.
Statement 4:
The introduction of a system
which puts the staff at the heart
of the decision making process in
an effort to improve productivity
and quality, allowing the business
to reduce prices.
 A*: Evaluate how important
stakeholders opinions are to
a business
 A: Analyse whether these
impacts are positive or
negative
 B: Examine how they affect
this group of stakeholders
 C: Identify which group of
stakeholders it affects
Climbing the ladder to success