1. Climbing the ladder to success.
Learning Aim: To understand business decisions and stakeholders. A*
Evaluate how stakeholders could influence a businesses decisions
Assess the conflicts that may occur between the stakeholders
Discuss why a stakeholder has an interest in a business
Identify who stakeholders are A B C
Climbing the ladder to success.

2. What is a stakeholder?
A stakeholder is an individual or a group which has an interest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful.

3. Who are the stakeholders?
Business owners
Other external groups (e.g. pressure groups)
Shareholders
Competitors
Managers & employees
The media
Customers
Banks and other finance providers
Suppliers
Government
Local community

4. What stakeholders are interested in?
Mainly interested in…
Shareholders / Owners
Return on investment + profits and dividends
Success and growth of the business
Proper running of the business
Managers & Employees
Rewards, including basic pay and other financial incentives
Job security & working conditions (e.g. holidays)
Promotion opportunities + job satisfaction & status – motivation, roles and responsibilities
Customers
Value for money
Product quality & customer service
Suppliers
Continued, profitable trade with the business
Financial stability – can the business pay its bills?
Banks & other finance providers
Can the business repay amounts loaned or invested?
Profitability and cash flows of the business
Growth in profits and value of the business
Government
The correct collection and payment of taxes (e.g. VAT, Income Tax)
Helping the business to grow – creating jobs
Compliance with business legislation
Local community
Success of the business – particularly creating and retaining jobs
Compliance with local laws and regulations (e.g. noise, pollution)

5. Climbing the ladder to success
Who are the stakeholders of Beauchamps?
A*: Evaluate how these stakeholders can affect the schools decision making
A: Assess any conflicts that may occur
B: Discuss why they may have an interest in the school
C: Identify the stakeholders of Beauchamps
Climbing the ladder to success

6. Stakeholders of Beauchamps
Students
Governors
Teachers
Parents
Competitors
Local Community
Non-teaching Staff
Essex County Council

7. Potential conflicts between stakeholders
Business Decision
Supported By?
Opposed By?
Cut jobs to reduce costs
Shareholders
Banks
Employees
Local community
Add extra shifts to increase factory capacity
Management
Customers & suppliers
Introduce new machinery to replace manual work
Customers
Increase selling prices by 10% to improve profit margins

8. Scenario
Stakeholders supporting
Stakeholders Opposing
Government has decided to make cuts in funding to education
Government
The governors have mad e a decision to reduce teacher pay in order to spend the money elsewhere in the school. (For example educational visits to bring the curriculum to life)
The school have made a decision to cut lunch breaks from one hour to half an hour to save teaching hours and pay
Teachers strike for additional pay.

9. Climbing the ladder to success
Potential conflicts between the stakeholders at Beauchamps
A*:Evaluate how these stakeholders could influence the schools decisions
A: Assess any conflicts that could occur between these stakeholders
B: Discuss why these stakeholder have an in the school
C: Identify potential conflicts between the stakeholders of Beauchamps
Climbing the ladder to success

10. Climbing the ladder to success
Look at the following statements referring to stakeholders and write down which groups of stakeholders it affects.
Statement 1:
A decision by those who run the business to introduce a system for monitoring the amount of pollution that it creates.
Statement 3:
A decision is made to cut cost by restructuring the business which results in redundancies.
A*: Evaluate how important stakeholders opinions are to a business
A: Analyse whether these impacts are positive or negative
B: Examine how they affect this group of stakeholders
C: Identify which group of stakeholders it affects
Statement 2:
A decision is taken to switch the sourcing of raw materials and components from the UK to a firm in Malaysia which reduces costs and boost profits.
Statement 4:
The introduction of a system which puts the staff at the heart of the decision making process in an effort to improve productivity and quality, allowing the business to reduce prices.
Climbing the ladder to success