1. STAKEHOLDERS
WHAT ARE THEY?

2. A person/group who have a positive INTEREST in a business and in the way it is run or managed.

3. What are these stakeholders interested in?
Government
What are these stakeholders interested in?
Customers
Employees
A Business
Bank
Managers
Suppliers
Shareholders
Pressure Groups
Local Community
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4. List the stakeholders of Millburn Academy and describe their interest? ? ?
Millburn Academy ? ? ? ? ?

5. Internal Stakeholders
Owner/Shareholders – interested in the performance of the business to ensure their return on investment is as high as possible.
Managers – interested in the survival and success of a business as their job depends on making the right decisions.
Employees – interested in the performance of the business to make sure they get paid their wages and have job security.

6. External Stakeholders
Customers – interested in price, quality and availability of goods.
Bank – interested in business activity to make sure they can pay back any borrowing.
Local Community – interested in what the business plans to do eg create jobs, cause pollution.
Government – interested in businesses as they provide employment and pay taxes.
Suppliers – interested in the success of a business to make sure they will get paid for goods sold.

7. News headline: Higher peak time rail fares
Task – part 1: List the stakeholders who would be interested in this headline and explain why.
Task – part 2: Watch the news report that went with this headline
Task – part 3: Did you consider all the stakeholders mentioned in part 2?

8. What influence can stakeholders have on a business?
For each example identify how it will affect a business:
Government can introduce new legislation
Customers can increase or decrease sales eg boycott
Banks can award or refuse a loan
Suppliers can let you down with late delivery of goods
Local Community can vote for or against expansion plans
Shareholders can vote on direction the business takes
Managers may affect success by their decisions
Employees could go on strike

9. Conflict between stakeholders
Different people/groups want different outcomes from a business - this can cause conflict between them:
EMPLOYEES want higher wages but MANAGERS have to control costs.
SHAREHOLDERS want increased dividends but DIRECTORS want to reinvest profits in new equipment.
CUSTOMERS desire lower prices but OWNERS want higher prices that lead to higher profits.

10. STAKEHOLDER CONFLICT - Complete the middle sections and think of 2 examples yourself (the first one has been done for you):
Stakeholder
Shareholder
Conflict
Shareholders want large dividend from profit, however, employees want a pay rise from the profits.
Employees
Stakeholder
Government
Conflict
Owner
Stakeholder
Supplier
Conflict
Owner