1.5.

1 Business stakeholders

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Write a definition of a stakeholder here:

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Stakeholders introduction

#1 Stakeholders: Role of Owners

• The role of an owner is to start and run a business to make a profit*

• The owner is the person (or persons) who start the business

• In an established business the current owner may be a relative of

the original owner

JCB – who is the owner now? _____________________________________________

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#1 Owners’ objectives

• The owners’ objectives are to get a good return on any money they
have invested in the business

• Owners’ objectives might include:

• To make a profit

• To survive (in the first year)

• To trade successfully

One more objective ______________________________________________

#2 Stakeholders: Role of employees

• The role of employees is to work in a business in return for wages

• They need to follow their work training and carry out their job to the
best of their _____________________________

• They also need to make sure that they follow all the health and
safety procedures of the business

• Are employees a resource? Yes / No

#2 Employees’ objectives

• 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 __________________________

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

• What do you think the worst job in the world is?

_________________________________________________________________________________

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#3 Stakeholders: Role of customers

• The role of customers is to buy goods or services from the business

• Customers want products and services that satisfy their

____________________________

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

___________________________

• Customers want businesses to have availability of the products and

services that they ___________________________________

#3 Customers’ objectives

• Customers are interested in the business because they want to

know they can get quality products and services at low prices

• Customers’ objectives include;

One more customer objective _____________________________________________

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#4 Stakeholders: Role of Managers

• A manager is a person responsible for controlling or organising

________________________________________

• Managers work inside a business and are in charge of the

employees on a day-to-day basis

• They are interested in a business because they may get a financial

bonus if they reach targets they have been set

#5 Stakeholders: Role of Suppliers

• The role of suppliers is to provide the business with goods or

services that they might need

• Suppliers are interested in the business because they want to know

if they will get paid for the goods and services they have provided

• Have a look at the Faire website, how could it help a small

business?

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#5 Suppliers’ objectives

Supplier objectives; they want to charge as high prices as possible to

make a profit, but without reducing the amount of demand for goods.

Suppliers also might want:

• they want customer loyalty with repeat orders

• they may also want larger orders

Name one other objective that a supplier might have

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#6 Stakeholders: Role of The local community

• The local community would be those who

live near a business who may be

impacted by its

_______________________________________

• The local community are interested in the business because it may

pollute the environment, it may cause noise with lorries loading or

with customers leaving noisily at night (pub)

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

local business _________________________________________

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#6 Local community objectives

The objectives of the local community that lives close to a business are:

• Watch the video, why are the local community angry at Tesco?

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#7 Stakeholders: Role of Pressure groups

• A pressure group is one that tries to influence public policy in the

interest of a particular cause

• A pressure group is interested in a business because they want to

know that they behaved in an ethical way:

Quick check – mini plenary

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#8 Stakeholders: Role of The Government

• The role of the UK government is to make sure there is economic

growth so that the business will have plenty of demand for the
products and services and that their customers will be able to afford
to buy them

• The government will also aim to provide low inflation to ensure that
prices don’t rise too high

• What would high inflation mean to a business?

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#8 Government objectives

Government objectives are for the business to be successful so that it can

pay:

The government can then use these taxes to spend on; public services,
defence, roads, rail and the benefits system (social protection)

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Look at the chart, what does the government spend on public transport
each year?

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Draw a line to match up the stakeholder to their interest

How stakeholders are affected by business activity

• A business starts a new marketing campaign, this means more work

for the employees, new targets for the managers

• A business starts to sell more goods abroad, this means more tax
for the government and new export laws to adhere to

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 Stakeholder How they can impact the business activity

Employees Employees can influence the success of an

organisation by

Suppliers Suppliers can decide whether to

Government Government can influence a business by

Customers Customers can influence a business by

Local community The local community can influence a business by

Possible conflicts between stakeholder groups: managers vs owners

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 • Managers want big ____________________________________ to be paid by
the owners

• Owners and shareholders don’t want to pay big bonuses out to the
managers as this will impact costs and lower
_______________________________ and dividends paid out to shareholders

Possible conflicts between stakeholder groups: customers vs owners

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 • Customers want low prices and high-quality products and services

• Owners and shareholders want high profits and dividends so

therefore they want to charge high prices. Quality products increase
costs so may also have an impact on _____________________.

Possible conflicts between stakeholder groups: suppliers vs owners

• Suppliers want to be paid on time for their goods and services,

which is good for their _____________________________________

• Owners and shareholders want to pay as late as possible so they

can hang onto the money for as long as possible and have time to
sell the _______________________________________

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