Stakeholders

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  • Stakeholders
    • Internal Stakeholders
      • Owners
        • For a sole-trader the owner normally works in the business and the same for a partnership. In limited companies, shareholders are the owner.
      • Employees
        • They have a clear interest in the business where they work.
    • External Stakeholders
      • Customers
        • They want to see a business continue in operation as they may rely on it.
      • Suppliers
        • A business that supplies goods and services to another business will obviously want the business to continue and grow.
      • Government
        • They have an interest in all businesses succeeding as this means that more people are paying taxes as they are working. Also, they are getting money from the business.
      • Local Community
        • They have an interest in the development however this could mean that they don't want certain businesses in their area such as toxic waste.
    • Effects of business activity on stakeholders
      • When a business grows it may need more employees which could come from  the local community. Suppliers will benefit from the business expanding and the government will from more taxes.
      • If a business is having difficulties and has to decrease in size, the reverse will occur. Employees might lose jobs, suppliers could be put out of business and the government may see a rise in un-employment benefit being paid out.
    • The affect stakeholders have on a business
      • Owners
        • They usually see profit as their main interest in running a business. They want to see it running as effectively as possible which may mean making workers redundant
      • Employees
        • They can influence business activity by objecting to changes in their work. They could go on strike for common issues such as wages.
        • They are also the foundations of the business. Good employees making a business successful but there is always a balance between what a business can afford to pay and what is the reasonable wage.
      • Customers
        • A business cant survive without customers and by them not buying the goods or services it sends a message to the owners that changes are needed.
      • Suppliers
        • They affect the business activity through the quality of goods they supply. They also have to deliver on time otherwise they will lose businesses.
      • Government
        • They affect a business by changing  taxation levels, give grants, change laws and spending money on railways and roads.

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