Chapter 1 Business organizations and their stakeholders ACCA F1 Chapter 1 Business organizations and their stakeholders

Organization Definition: a social arrangement which pursues collective goals, which controls its own performance and which has a boundary separating it from its environment. Organization VS Individual Differences between organizations: ownership, control, activity, orientation(goal), legal status, size, etc.

Types of organization Profit orientation VS non profit orientation organization Private, public sector and non-governmental organization Sole trader, partnership and limited company Cooperative societies, mutual associations (仅需了解)

Organization’s stakeholder Definition: those individuals or groups that have an interest in what the organization does. Bi-directional relationship Types: internal stakeholders, connected stakeholders, external stakeholders.

Main types of stakeholder Internal stakeholders: working inside the business. Connected stakeholders: have a contract with the business. External stakeholders: others that influence or be influenced by the business, having diverse objectives.

Stakeholder mapping Proposed by Mendelow: power and level of interest Key player Kept satisfied Kept informed Minimal effort