1.4 - Stakeholders

Outline the sources of stakeholder conflict in a business.

Conflict arises because: - a business cannot simultaneously meet the needs of all its stakeholders. - remuneration (pay and benefits)

Distinguish between a director and a manager of a company.

Director = a person from a group of managers who leads or supervises a particular area of a company. Manager = a person responsible for supervising and motivating employees and for directing the progress of an organisation.

Explain why employees are often considered to be the key stakeholders in an organisation.

Employees are often considered to be key stakeholders as they strive to improve their working conditions, pay, job security and opportunities and as a result have a large part to play in a business.

How might businesses resolve conflict in the workplace?

In dealing with conflict and deciding where priorities lie, leaders must look at: - type of organisation in question - aims and objectives of the business - source and degree of power of each stakeholder group

Explain the difference between internal and external stakeholders.

Internal stakeholders = members of the organisation. E.g. employees, managers and directors, shareholders. External stakeholders = not part of the business but have a direct interest or involvement in the organisation. E.g. customers, suppliers, pressure groups.

How might pressure groups affect the success of a business?

Pressure groups have a very direct influence on actions of businesses and act in a particular way to influence a change in behaviour. This could lead to harm regarding the success of a business.

What is the difference between stakeholders and shareholders?

Stakeholder = any person or organisation with a direct interest in the activities and performance of a business. Shareholder = owners of the business and as a result are entitled to have a share in the profits.