• Created by: Megan Lay
  • Created on: 23-04-18 11:50

Stakeholder: a person or party with an interest in the success of a business

Examples of stakeholders: Employees, Customers, Suppliers, Local Community, Lenders, The government

Explanations of each: 

  • Employees: are likely to offer more than the legal entitlement to holidays, sick pay etc. Their livelihood depends on the business so it is obvious they want the highest wage possible and bonuses given. Most employees would like managers to organise their work so that it is interesting, challenging and provides more job satisfaction. Many will want to attend training courses to improve their skills and therefore their pay and promotion prospects.
  • Customer: want the best quality products at the lowest possible price. They also want product innovation so that each year's products should be better than the last. Other requirements include good customer service such as well trained representatives to answer any queries. They may want credit facilities if the product is expensice, such as furniture. As well as these factors, customers are increasingly aware of ethical issues. If consumers are dissatisfied with the quality, price, service or ethical behaviour, they will eventually stop buying from the business. If sufficient amount of numbers of people do this, it can have a significant effect i.e the closure of a business. Consumers may also form pressure groups that try to influence the business by generating bad publicity.
  • Suppliers: If a business ceases trading, its suppliers lose a source of income. A supplier would like to see its customers prosper so that it has a regular profit; it would prefer repeat orders rather than just the odd order. It hopes it customers will grow larger so that, in turn, it can increase its own sales to them. A supplier would also like to be paid as promptly as possible. There is a difference between a supplier and a supplier as a stakeholder. A business will try to build a long term relationship with its suppliers. This means using them regularly, paying them on time, and involving them in any plans for expansion. Suppliers who are treated as stakeholders are more likely to be loyal and committed because they have a 'stake' in the business. A…


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