1.5: stakeholders in business
- Created by: hanfa
- Created on: 14-04-21 17:24
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- 1.5
- internal stakeholders
- owners: provide finance to start the business, may manage or may employ managers to run the business on their behalf. their objectives are mostly profits
- benefits: earns profits is business is successful
- problems: may lose money invested in the business if it fails
- employees: produce goods and services. objectives: treated fairly, gain a income, job satisfaction, enjoyment of social aspect with collegues.
- benefits: employed in a job role and can earn an income from the business
- problem: may be redundant if business doesn't need/cant afford them. employment might be unfair leading to stress
- owners: provide finance to start the business, may manage or may employ managers to run the business on their behalf. their objectives are mostly profits
- external stakeholders
- customers: buy goods and services. objectives: enjoy benefits that come with goods and services, pay affordable prices.
- benefits: obtain products and services at good prices that satisfy their wants
- problems: poor quality goods, over charged, bad customer service experience
- suppliers: sell goods for resale or components and materials needed to manufacture goods or provide a service.
- benefits: sell their goods and earn profits.
- problems: may lose money if business doesn't pay for goods, cash flow problems in the business may delay payment to their suppliers
- government: help businesses, workers and communities. objectives: encourage businesses as it leads to high employment and prosperous communities, encourage businesses as it increases taxes paid to government.
- benefits: receive tax revenue from owners, workers suppliers and customers of the business
- problems: very large companies can become too big to fail, so if they do end up failing the gov will be criticked for not trying to step in to save the business.
- local community: provide workers and monitor and influence business activity: objectives to have a local area which is prosperous, healthy and safe.
- benefits: can earn money from jobs or workers in the area have money to spend in their businesses
- problems: community can be affected by pollution and road congestion caused by business.
- customers: buy goods and services. objectives: enjoy benefits that come with goods and services, pay affordable prices.
- effect of business activity on stakeholders
- benefits: profit, jobs and income, goods and services, sales, taxes and prosperity
- problems: financial losses, redundancy, poor goods and services, late or missed payments, bad publicity and negative impacts on the local environment and community
- internal stakeholders
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