Unit 2 GCSE Business and Communication Systems STAKEHOLDERS
Learning Outcomes Students should be able to: define the term stakeholder demonstrate knowledge and understanding of the following different stakeholder groups that may have an interest in a business discuss how the aims of these stakeholders may be in conflict Images © thinkstockphotos.co.uk
Stakeholder Definition A stakeholder is an individual, group or organisation that has an interest or concern in the activities and performance of an organisation. Stakeholders can affect or be affected, either positively or negatively, by the organisation. Stakeholder Definition Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk Pupil Activity Working with a partner you have five minutes to: identify the key stakeholders in your school produce a spider diagram, recording the names of these stakeholders be prepared to feedback to the class based on the feedback from other pairs, add any stakeholder groups you hadn’t thought of to your diagram Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk STAKEHOLDERS SCHOOL Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk SCHOOL STAKEHOLDERS Pupils Parents Local Community Support Staff Employers DENI Board of Governors Teaching Staff Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk Pupil Activity Working in threes you have fifteen minutes to: select two of these stakeholder groups or your teacher may allocate them to you discuss why these stakeholders have an interest in your school discuss why your school has an interest in them provide examples of how these stakeholders could affect or be affected, either positively or negatively, by the school be prepared to feedback to the class Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk Whole Class Activity Work with your class to: Identify the stakeholders who have an interest in a business produce a spider diagram, recording the names of these stakeholders Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk BUSINESS STAKEHOLDERS Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk BUSINESS STAKEHOLDERS Consumers Suppliers Local Community Competitors Owners/ Shareholders Trade Unions Financial Institutions Employees Managers/ Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk Pupil Activity Working in threes you have ten minutes to: select two of these stakeholder groups or your teacher may allocate them to you discuss why these stakeholders have an interest in a business discuss why a business is likely to have an interest in them provide examples of how these stakeholders could affect or be affected, either positively or negatively, by the business be prepared to feedback to the class Images © thinkstockphotos.co.uk
Business Stakeholders Owners/shareholders Managers/employees Competitors Suppliers Consumers Financial institutions Trade unions Local community Images © thinkstockphotos.co.uk
Owners/Shareholders Interest & Conflict Profit focus – maximum return Livelihood Success Reputation SHAREHOLDERS Part owners of a limited company Investment - shares - dividend Attend the Annual General Meeting (AGM) and vote for the Board of Directors CONFLICT with the aims of: Managers/employees/trade unions Competitors Suppliers Consumers Financial institutions Local community Owners/Shareholders Interest & Conflict Images © thinkstockphotos.co.uk
Managers/ Employees Interest & Conflict Fair wage/salary Good working conditions Job security Training and development Career progression CONFLICT with the aims of: Owners/shareholders Consumers Local community Managers/ Employees Interest & Conflict Images © thinkstockphotos.co.uk
Competitors Interest & Conflict Price Products Quality Service Growth CONFLICT with the aims of: Owners/shareholders Managers/employees/ trade unions Suppliers Consumers Competitors Interest & Conflict Images © thinkstockphotos.co.uk
Suppliers Interest & Conflict Financial stability Prompt payment Continued regular orders Fair deal CONFLICT with the aims of: Owners/shareholders Competitors Financial institutions Suppliers Interest & Conflict Images © thinkstockphotos.co.uk
Consumers Interest & Conflict Competitive prices Good range of products Quality Customer service Good reputation CONFLICT with the aims of: Owners/shareholders Managers/employees/trade unions Competitors Consumers Interest & Conflict Images © thinkstockphotos.co.uk
Financial Institutions Interest & Conflict Financial stability Ability to meet repayments Sound business plans CONFLICT with the aims of: Owners/shareholders Managers/employees Competitors Suppliers Financial Institutions Interest & Conflict Images © thinkstockphotos.co.uk
Trade Unions Interest & Conflict Fair treatment of workers Negotiate a wage/salary at least in line with inflation Good working conditions Job security CONFLICT with the aims of: Owners/shareholders Consumers Local community Trade Unions Interest & Conflict Images © thinkstockphotos.co.uk
Local Community Interest & Conflict Corporate social responsibility Noise reduction Traffic Congestion Opening hours Care for the environment Community involvement CONFLICT with the aims of: Owners/shareholders Managers/employees Consumers Local Community Interest & Conflict Images © thinkstockphotos.co.uk
Conflict between Stakeholders Wages/salaries Job creation/job losses Changes to working conditions Profit distribution New government legislation Environmental threats Images © thinkstockphotos.co.uk
Images © thinkstockphotos.co.uk Pupil Activity Working individually you have fifteen minutes to answer the following past paper questions: 2011 Question 3d 2014 Question 1a 2016 Question 1d Images © thinkstockphotos.co.uk
Learning Check Can you: define the term stakeholder demonstrate knowledge and understanding of the following different stakeholder groups that may have an interest in a business: owners/shareholders managers/employees competitors suppliers consumers financial institutions trade unions local community discuss how the aims of these stakeholders may be in conflict Images © thinkstockphotos.co.uk