Stakeholders
- Created by: emilyrrich
- Created on: 11-06-18 13:45
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- Stakeholders
- Internal Stakeholders
- Owners
- For a sole-trader the owner normally works in the business and the same for a partnership. In limited companies, shareholders are the owner.
- Employees
- They have a clear interest in the business where they work.
- Owners
- External Stakeholders
- Customers
- They want to see a business continue in operation as they may rely on it.
- Suppliers
- A business that supplies goods and services to another business will obviously want the business to continue and grow.
- Government
- They have an interest in all businesses succeeding as this means that more people are paying taxes as they are working. Also, they are getting money from the business.
- Local Community
- They have an interest in the development however this could mean that they don't want certain businesses in their area such as toxic waste.
- Customers
- Effects of business activity on stakeholders
- When a business grows it may need more employees which could come from the local community. Suppliers will benefit from the business expanding and the government will from more taxes.
- If a business is having difficulties and has to decrease in size, the reverse will occur. Employees might lose jobs, suppliers could be put out of business and the government may see a rise in un-employment benefit being paid out.
- The affect stakeholders have on a business
- Owners
- They usually see profit as their main interest in running a business. They want to see it running as effectively as possible which may mean making workers redundant
- Employees
- They can influence business activity by objecting to changes in their work. They could go on strike for common issues such as wages.
- They are also the foundations of the business. Good employees making a business successful but there is always a balance between what a business can afford to pay and what is the reasonable wage.
- Customers
- A business cant survive without customers and by them not buying the goods or services it sends a message to the owners that changes are needed.
- Suppliers
- They affect the business activity through the quality of goods they supply. They also have to deliver on time otherwise they will lose businesses.
- Government
- They affect a business by changing taxation levels, give grants, change laws and spending money on railways and roads.
- Owners
- Internal Stakeholders
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