1. What Effect Do Business Decisions Have On Stakeholders?
Unit 1
Topic 1.5.5

2. Lesson Objectives Must learn: what is meant by a stakeholder
Should learn: why stakeholders are important to a business
Could learn: how business decision can affect stakeholders

3. Starter – Who are stakeholders?

4. Starter- What are stakeholders?
Anyone who has an interest (or stake) in a business
THINK! For Hodge Hill School, who are the stakeholders?
(not steak-holders!))

5. An Example of Stakeholders

6. Stakeholders

7. Who Are The Stakeholders?

8. Internal or External Stakeholders?

9. Primary or Secondary Stakeholders?

10. What do Stakeholders Want?

11. Conflict

12. Stakeholder Influence

13. Stakeholder conflictsvs
Shareholders
Managers
Employees
Customers
Suppliers
Local community

14. Stakeholder conflicts
Shareholders
Managers vs

15. Stakeholder conflicts
Shareholders What should happen to the profits?
Managers
What should happen to the profits? vs

16. Stakeholder conflicts
Shareholders Want the profits to be paid out in dividends
Managers
Want the profits re- invested in the business vs

17. Stakeholder conflicts
Shareholders & Managers
Employees vs

18. Stakeholder conflicts
Shareholders & Managers Want loyal, reliable and cheap workers
Employees
Want job security and high pay vs

19. Stakeholder conflicts
Shareholders & Managers
Customers vs

20. Stakeholder conflicts
Shareholders & Managers Want customers prepared to pay high prices
Customers
Want quality at low prices vs

21. Stakeholder conflicts
Shareholders & Managers
Suppliers vs

22. Stakeholder conflicts
Shareholders & Managers Want suppliers who can deliver quality stock on time and want to be able to pay on credit
Suppliers
Want to be paid promptly to help their cash flow vs

23. Stakeholder conflicts
Shareholders & Managers Want to be able to run the business with little interference
Local community
Want a company which respects the wishes of the local community and sponsors local events vs

24. External Factors & Stakeholders

25. Task 1
Keith owns a white goods repair company, fixing dishwashers, washing machines and other household goods. Keith employs 2 skilled workers who also go to customers houses and fixes appliances on-site.
Keith has a business loan with NatWest bank and he is currently repaying them £300 per month.
Keith’s main supplier is Argon Appliances who are his main provider for spare parts and replacement machines.

26. Task 1 Create a presentation that shows the stakeholders for
Keith and the effects of the following business decisions
he has recently made:
Increased annual salary of all employees by 5%
Has sourced replacement washing machines from B&Q as it is cheaper than buying from Argon supplies.
Allow emergency call out for all customers both evenings and weekends
Increased call out charges by 12% in emergencies
To buy a new premises in the town centre so he can complete repairs on appliances and store more stock.
For each decision say:
Who is affected?
How that decision might affect them?
Is there are conflict of interest?

27. Plenary

28. Homework
Create a mind map of all of the stakeholders for the BT group. For each stakeholder, investigate how BT are trying to meet their needs.
(5 Marks)