1. Understanding Business
STAKEHOLDERS

2. Definition:
Individuals or groups of people who have an interest in, and stand to be affected by, the success or failure of an organisation.
They can also influence the way a business is run.
Note: Competitors are not classed as stakeholders as they do not want others to be successful!!

3. Stakeholders include Customers Community Managers Suppliers
N5 Recap – list the interest and the influence each of these stakeholders would have on a business
Stakeholders include
Customers
Community
Managers
Suppliers
Organisation
Employees
Bank
Government
Shareholders/owners

4. Stakeholders Relationship
Interdependence – why a stakeholder needs another stakeholder
Conflict – the disagreements that can occur between different stakeholders

5. Examples: Stakeholders – owner and employees Interdependence
Owners need employees to carry out tasks and employees need owners to pay wages
Owners need employees to do their job well and employees need the owner to provide training
Conflict
Owners want to pay lowest wages possible whereas employees want the highest wage possible
Owners wants employees to works as many hours as possible whereas employees want to work the fewest hours possible

6. Stakeholders – owner and customers
Interdependence
Owners need customers to buy products in order to make a profit and customers need owners to provide the products they want
Owners need customers to become loyal (market share) and customers want to be rewarded for being loyal (discounts)
Conflict
Owners want to charge the highest price possible whereas customers want to pay the lowest price possible

7. Other examples to consider:
Employees and customers
Owners and suppliers
Owners and bank
Owners and government
Owners and the local community