1. Stakeholder perspectives
AO4: Assess information to enable stakeholders to make decisions about the financial performance of an enterprise
A stakeholder is any individual or group with an interest in the actions of the business.
Draw a spider diagram to show stakeholders.
Who are the stakeholders in your school or college?
Stakeholder perspectives

2. Stakeholder perspectives
In this topic you will learn about
Information needed to take decisions by:
Owners
Managers
Potential investors
Suppliers

3. Stakeholders can also be classified as primary or secondary.
A stakeholder is any individual or group with an interest in the actions of the business
These can be:
Internal i.e. from within the business
External i.e. from outside of the business
Stakeholders can also be classified as primary or secondary.
Primary stakeholders have a direct relationship with the business whereas secondary stakeholders although affected by the actions of a business are not directly related to the business.
Internal stakeholders
External stakeholders
Employees
Managers
Owners
Customers
Suppliers
Shareholders
Government
Local community
Society
Creditors

4. Stakeholder perspectives
Different stakeholders will want information to take decisions. Examples include:
Owners
Return on capital employed – is their investment generating returns?
Activity ratios – are managers working effectively?
Market trends – should the business invest in growth?
Managers
Profitability ratios and variance analysis – are expenses being managed?
Activity ratios and cash flow – is the business solvent?
Potential investors
Income statement and statement of financial position to assess business performance
Share prices and dividends paid
Forecast market trends
Suppliers
Solvency and activity ratios especially trade payables payment period – should they offer credit? What is the degree of risk involved?

5. Activity
Split the class into 4 groups to represent owners, managers, potential investors, suppliers
Each group is to prepare a short presentation from their stakeholders perspective to cover:
What are the stakeholders likely objectives?
What decisions do the stakeholders make?
How would they use:
Published accounts of the business
Published accounts of competitors
Market trends
Market and industry research?

6. Stakeholder perspectives
In this topic you have learnt about
Information needed to take decisions by:
Owners
Managers
Potential investors
Suppliers