lo1 f85w 34 - stakeholders
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Meeting the Needs
of Stakeholders
BTEC Business
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What are Stakeholders?
Stakeholders are groups of peoplewho have an interest in a business
organisation They can be seen as being either
external to the organisation,
or internal But some may be both!
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Types of Stakeholder
Owners (I)
Shareholders (I)
Managers (I) Staff or employees (I)
Customers (E)
Suppliers (E)
Community (E) Government (E)
Investors (I and/or E)
I = Internal
E = External
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Internal and External
StakeholdersInternal stakeholders are those who are
members of the business organisation
Owners and shareholders and Investors
Managers
Staff and employees
External stakeholders are not partof the firm
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But..!
Some groups can be both internaland external stakeholders
Such as staff or shareholders(Investors)who are also local residents
Can you think of any others?
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Characteristics of
Stakeholders1. Owners and Shareholders
The number of owners and the roles they carryout differ according to the size of the firm
In small businesses there may be only oneowner (sole trader) or perhaps a small numberof partners (partnership)
In large firms there are often thousandsof shareholders or Investors, who each own asmall part of the business
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2. Managers:
organise
make decisions
plan
control
are accountable to the owner(s)
Characteristics of
Stakeholders
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Characteristics of
Stakeholders3. Employees or Staff:
A business needs staff or employeesto carry out its activities
Employees agree to work a certain numberof hours in return for a wage or salary
Pay levels vary with skills, qualifications, age,location, types of work and industryand other factors
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Characteristics of
Stakeholders4. Customers:
Customers buy the goods or services producedby firms
They may be individuals or other businesses
Firms must understand and meet the needs
of their customers, otherwise they will failto make a profit or, indeed, survive
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5. Suppliers:
Firms get the resources they need to producegoods and services from suppliers
Businesses should have effective relationshipswith their suppliers in order to get quality
resources at reasonable prices This is a two-way process, as suppliers depend
on the firms they supply
Characteristics of
Stakeholders
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6. Community:
Firms and the communities they exist inare also in a two-way relationship
The local community may often provide manyof the firms staff and customers
The business often supplies goods
and services vital to the local area But at times the community can feel aggrieved
by some aspects of what a firm does
Characteristics of
Stakeholders
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7. Example of a Stakeholder is theGovernment:
Economic policies affect firms costs (throughtaxation and interest rates)
Legislation regulates what business can do
in areas such as the environmentand occupational safety and health
Successful firms are good for governmentsas they create wealth and employment
Characteristics of
Stakeholders