2. PM/09/02NQBM - STAKEHOLDERS1 STAKEHOLDERS The people who are affected by the success or failure of the business are known as STAKEHOLDERS

3. PM/09/02NQBM - STAKEHOLDERS2 Some stakeholders have very close links with an organisation and would be greatly affected by it success or failure. These are known as INTERNAL STAKEHOLDERS. PUPILS TEACHERS HEADTEACHER LOCAL AUTHORITY INTERNAL STAKEHOLDERS

4. PM/09/02NQBM - STAKEHOLDERS3 AIMS OF INTERNAL STAKEHOLDERS (What does the stakeholder want from the organisation?) PUPILS want a good education TEACHERS want better pay, working conditions and good promotion prospects HEADTEACHER wants a well-run school, better pay, enhanced personal reputation and status LOCAL AUTHORITY wants a good return for their investment, ie, provision of a good education service for their council tax payers

5. PM/09/02NQBM - STAKEHOLDERS4 Stakeholder Questions 1.Describe the term ‘internal stakeholder’? 2.Why would an employee be an internal stakeholder of the business? 3.What do you think the main aims of employees would be?

6. PM/09/02NQBM - STAKEHOLDERS5 Other stakeholders have an interest in an organisation but are not greatly affected by it success or failure. These are known as EXTERNAL STAKEHOLDERS. SUPPLIERS PARENTS LOCAL COMMUNITY THE GOVERNMENT EXTERNAL STAKEHOLDERS

7. PM/09/02NQBM - STAKEHOLDERS6 AIMS OF EXTERNAL STAKEHOLDERS PARENTS want a school which will provide a good education for their children SUPPLIERS want more orders for books, jotters and equipment LOCAL COMMUNITY want their environment treated properly – no vandalism or litter THE GOVERNMENT want the school to provide employment and make efficient use of taxes

8. PM/09/02NQBM - STAKEHOLDERS7 Baldwin’s Textiles Ltd is a clothing manufacturer who supplies several well-known high street retailers. The factory is situated near to a housing estate and they employ several hundred workers. Their main supplier of material is Quality Cloth Ltd and they have recently invested in new machinery with a loan from the bank. BALDWIN’S TEXTILES LTD 1.Identify the internal and external stakeholders of Baldwin’s Textiles Ltd? 1.What are the aims of each group of stakeholders?

9. PM/09/02NQBM - STAKEHOLDERS8 INTERNAL Shareholders – increased dividend Baldwin and his managers – more profit, more orders, growth Workers – good pay and conditions EXTERNAL Suppliers – continued orders and payment on time Local community – respect for local environment, job creation Customers – reliable supply of quality goods on favourable terms Bank – repayment of loan under the agreed terms BALDWIN’S TEXTILES LTD - SOLUTION

10. PM/09/02NQBM - STAKEHOLDERS9 INFLUENCE OF STAKEHOLDERS Stakeholders can affect the way businesses operate. Some stakeholders have more power than others. Those stakeholders with the most power have the greatest influence over business decisions.

11. PM/09/02NQBM - STAKEHOLDERS10 Stakeholder Task 1.Write down the following stakeholders. Customers; Suppliers; Employees –State whether they are internal or external. –For each, suggest how they might influence the company.

12. PM/09/02NQBM - STAKEHOLDERS11 INFLUENCE OF INTERNAL STAKEHOLDERS SHAREHOLDERS –Can vote at AGM to appoint/remove directors and other major decisions OWNERS –Take decisions which can affect overall objectives of firm MANAGERS –Make day-to-day decisions EMPLOYEES –Success of firm depends of efficiency of workers –Can take industrial action if unhappy

13. PM/09/02NQBM - STAKEHOLDERS12 SUPPLIERS –Can change credit terms,discounts, quality or price of goods they supply CUSTOMERS –Can stop buying goods or services if they are dissatisfied THE GOVERNMENT –Can introduce laws or changes levels of tax LENDERS –Can control availability of finance or interest rates COMMUNITY –Can pressurise firm through action groups INFLUENCE OF EXTERNAL STAKEHOLDERS

14. PM/09/02NQBM - STAKEHOLDERS13 CALEDONIAN UNITED FC Caledonian United FC are a successful football team in the SPL. They are a public limited company and many of their fans are shareholders as well as season ticket holders. They are hoping to do well this season both at home and in Europe. Who are Caledonian United’s main stakeholders? How might each of these stakeholders influence the decisions taken by the football club? Fans – Support team by attending matches, buying merchandise. May not buy season ticket if disappointed with results.

15. CALEDONIAN UNITED FC - SOLUTION STAKEHOLDERSINFLUENCE ShareholdersHave power to vote on issues like appointment of directors. They may sell shares if unhappy with profits and dividends. Board of Directors Make decisions regarding all aspects of club, eg, appointment/sacking of manager, making funds available to manager for buying new players. ManagerSelects team, decides tactics. PlayersMay choose to transfer to another club is unhappy with wages and conditions. FansSupport team by attending matches, buying merchandise. May not buy season ticket if disappointed with results. Local communityMay protest about parking, vandalism, litter and oppose extension to stadium. SFAAppoint referees and officials, apply rules. MediaReport on matches and players – publicity may be good or bad.