Just what is a stakeholder?  A person or group whom the product will directly or indirectly affect  Stakeholders can be divided into internal and external stakeholders

 Employees—wages, job security, safety, “say” in company  Pay  Working Conditions  Job Security  Training and career progression opportunities

 Managers—compensation, job security, responsibilities  People who plan, organize, and control the daily running of the business.  Likely to aim for profit maximization.  May aim to retain profits for further investment in the business.  CEO/Managing Director  Coordinates business strategy and deliver profits  Senior Manager  Strategic objectives for functional areas  Middle Manager  Tactical Objectives and operational objectives

 Shareholders / Stockholders  Owners of private and public limited companies.  Two objectives:  To maximize share dividend payments.  To achieve a rise in the value of the share price.

 Suppliers  Provide a business with stocks of raw materials, component parts, finished goods, and other resources needed for production.  Strong Working Relationship  Receive quality raw materials and stocks on time and at a good price.  Place and receive orders at short notice.  Credit offering

 Customers  Determines the financial performance of a business.  Two Rules:  #1 The customer is always right.  #2 If the customer is ever wrong, read rule #1.  “Right or wrong, the customer is always right.”

 Special Interest Groups  Organizations that advocate certain issues.  Examples:  Trade/labour unions  Industry trade groups  Pressure groups  Local community

 Competitors  Rival businesses of an organization.  Interested in business activities because:  To avoid anti-competitive practices of rival firms.  To stimulate innovation and product development.

 Government  Assures that unfair business practices are avoided  Health and safety standards are met  Right amount of corporation tax  Consumer protection laws  Employment legislation

 Financiers  Focus a return on their investment  The Media  Focuses on the impact of the firm in terms of news stories

 Different stakeholder groups might have different interests in the company, which may lead to conflicts  Give examples of how the interests of different stakeholder groups might differ: Managers and Employees Owners and Customers