BUSINESS ORGANISATION AND ENVIRONMENT 1.4 Stakeholders

Whart are pressure groups?

A type of special interest group which consist of individuals with a common concern who seek to place demands on organisations to act in a particular way or to influence change in their behaviour e.g. Greenpeace

*Competitors*. External or internal stakeholder?

External

Shareholders

The people who own shares in a private or public limited company; i.e. they are the part owners of a company

What is a stakeholder?

person group = affects or can be affected by an organization's action

Special interest group

An organisation of people who have a common interest, such as the protection of the global environment, and collectively act to achieve that interest by involving public opinion and governmen

What are the three levels that pressure groups can operate on?

DIRECT ACION - group attacks firm directly ENCOURAGE PUBLIC AGAINST FIRM ATTEMPT 2 INFLU POLITICANS 2 change policy

*Customers*. External or internal stakeholder?

External

*Government*. External or internal stakeholder?

External

*Local community*. External or internal stakeholder?

External

*Special interest groups*. External or internal stakeholder?

External

*Suppliers*. External or internal stakeholder?

External

*Directors*. External or internal stakeholder?

Internal

*Employees*. External or internal stakeholder?

Internal

*Managers*. External or internal stakeholder?

Internal

*Shareholders*. External or internal stakeholder?

Internal

what are examples of potential conflicts of stakeholders?

increasing wages of suppliers/improve conditions= - decreases/impacts firm's profit ALSO improve firm's image and reputation for having helped employees work conditions eg: Primark improve conditions of factory workers in Blangla paying high price to suppliers - affects profits and improve supplier's cash flow charging low price = affect revenues - cut into profits env Frie production - benefiting to local comm - = could be expensive and add extra costs to firm

What is the responsibility of a manager?

responsible for the day-to-day activities of running the business

What are possible LT benefits to stakeholders?

well paid workforce = increase motivation +loyalty and lower staff turnover suppliers - treated well = MORE FLEXIBLE eg: rush order - issue with quality customers - feeling good value 4 $$ = persuade friends to buy products/loyal/LT customers many firms = GOOD RELA with neighbors - when new plans are being considered = BENEFIT

Distinguish between *shareholders* and *stakeholders*

Shareholders are the part owners of a private or public company. They have a direct interest in the activities and performance of a business and are, therefore, stakeholders of an organisation. However, there are other stakeholders of an organisation that do not necessarily own shares in the business; e.g. employees, the local community, suppliers, competitors. So, *shareholders are stakeholders, but stakeholders are not necessarily shareholders*.

Directors

The senior members of staff who have been elected by shareholders of a company to run the company on their behalf

What is the stakeholder concept?

The view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders

Internal stakeholders

These stakeholders are members of the organisation; i.e. the employees, the shareholders (who own the business), managers and directors of a business

External stakeholders

These stakeholders do NOT form part of the organisation BUT have a direct interest or involvement in the actions of the organisation. eg: customers, suppliers and the government