Chapter 2 Stakeholders

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  • Chapter 2: Stakeholders
    • A stakeholder is a person, or a party, with an interest in the success of a business
    • Community
      • Businesses bring jobs, which brings in high levels of employment, prosperity and spending power. It also causes property prices to rise and crime levels to fall
    • Owners
      • Will want the best possible return on the money that they have invested in the business. They will also want to the business to grow so returns increase.
    • Customers
      • Want the best quality of product at the lowest possible price. They also want them to be safe and they want them to be an improvement on the year before. In addition customers want good customer service and credit facilities for expensive products.
    • Government
      • - If more people are employed, the government pay out less on social security benefits.
      • - As a business grows larger, it may start to export, which helps to improve the UKs trading position in other countries.
      • - The government benefits from tax revenue increase, both from the business and its employees.
        • Legal and Economic Regulator
          • Responsibility for economic wellbeing of the country, by introducing laws to protect individuals from improper treatment e.g competition law and consumer protection law.
    • Suppliers
      • Wants its customers to prosper so it has a regular profits. It wants customer businesses to grow increasing profits and prompt payment.
    • Lenders
      • Banks wants the agreed amount to be paid on time. They also want the correct amount on time, so that it gets its money back at the agreed time.
  • A stakeholder is a person, or a party, with an interest in the success of a business
  • External Stakeholders
    • Internal Stakeholders
      • Found within the business and are the owners and employeesk including managers
    • Suppliers, lenders, customers and the local community
  • Suppliers, lenders, customers and the local community
  • Suppliers
    • Wants its customers to prosper so it has a regular profits. It wants customer businesses to grow increasing profits and prompt payment.
  • Government
    • - If more people are employed, the government pay out less on social security benefits.
    • - As a business grows larger, it may start to export, which helps to improve the UKs trading position in other countries.
    • - The government benefits from tax revenue increase, both from the business and its employees.
      • Legal and Economic Regulator
        • Responsibility for economic wellbeing of the country, by introducing laws to protect individuals from improper treatment e.g competition law and consumer protection law.
  • Businesses bring jobs, which brings in high levels of employment, prosperity and spending power. It also causes property prices to rise and crime levels to fall
  • Will want the best possible return on the money that they have invested in the business. They will also want to the business to grow so returns increase.
  • Want the highest wage possible, a bonus if possible and job security. They also want legal entitlement to holidays, sick pay etc.
  • Want the best quality of product at the lowest possible price. They also want them to be safe and they want them to be an improvement on the year before. In addition customers want good customer service and credit facilities for expensive products.
  • As consumer
    • When the government consumes goods to provide services for the country e.g employing a company to make roads
  • As supplier
    • Services which benefits the community: such as healthcare, education and armed forces.
  • Social Responsibilities
    • What is beneficial to society e.g raising awareness of smoking dangers
  • When the government consumes goods to provide services for the country e.g employing a company to make roads
  • Services which benefits the community: such as healthcare, education and armed forces.

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