http www bized ac uk Meeting the Needs

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http: //www. bized. ac. uk Meeting the Needs of Stakeholders AVCE Business Copyright 2003

http: //www. bized. ac. uk What are Stakeholders? • Stakeholders are groups of people who have an interest in a business organisation • They can be seen as being either external to the organisation, or internal • But some may be both! Copyright 2003 – Biz/ed

http: //www. bized. ac. uk Types of Stakeholder • • Owners (I) Shareholders (I) Managers (I) Staff or employees (I) Customers (E) Suppliers (E) Community (E) Government (E) • I = Internal • E = External Copyright 2003 – Biz/ed

http: //www. bized. ac. uk Internal and External Stakeholders Internal stakeholders are those who are ‘members’ of the business organisation • • Owners and shareholders Managers Staff and employees External stakeholders are not part of the firm Copyright 2003 – Biz/ed

http: //www. bized. ac. uk But…. . ! • Some groups can be both internal and external stakeholders • Such as staff or shareholders who are also local residents • Can you think of any others? Copyright 2003 – Biz/ed

http: //www. bized. ac. uk Characteristics of Stakeholders 1. Owners and Shareholders • The number of owners and the roles they carry out differ according to the size of the firm • In small businesses there may be only one owner (sole trader) or perhaps a small number of partners (partnership) • In large firms there are often thousands of shareholders, who each own a small part of the business Copyright 2003 – Biz/ed

http: //www. bized. ac. uk Characteristics of Stakeholders 2. Managers: • • • organise

http: //www. bized. ac. uk Characteristics of Stakeholders 3. Employees or Staff: • A business needs staff or employees to carry out its activities • Employees agree to work a certain number of hours in return for a wage or salary • Pay levels vary with skills, qualifications, age, location, types of work and industry and other factors Copyright 2003 – Biz/ed

http: //www. bized. ac. uk Characteristics of Stakeholders: 4. Customers: • Customers buy the goods or services produced by firms • They may be individuals or other businesses • Firms must understand meet the needs of their customers, otherwise they will fail to make a profit or, indeed, survive Copyright 2003 – Biz/ed

http: //www. bized. ac. uk Characteristics of Stakeholders 5. Suppliers: • Firms get the resources they need to produce goods and services from suppliers • Businesses should have effective relationships with their suppliers in order to get quality resources at reasonable prices • This is a two-way process, as suppliers depend on the firms they supply Copyright 2003 – Biz/ed

http: //www. bized. ac. uk Characteristics of Stakeholders 6. Community: • Firms and the communities they exist in are also in a two-way relationship • The local community may often provide many of the firm’s staff and customers • The business often supplies goods and services vital to the local area • But at times the community can feel aggrieved by some aspects of what a firm does Copyright 2003 – Biz/ed

http: //www. bized. ac. uk Characteristics of Stakeholders 7. Government: • Economic policies affect firms’ costs (through taxation and interest rates) • Legislation regulates what business can do in areas such as the environment and occupational safety and health • Successful firms are good for governments as they create wealth and employment Copyright 2003 – Biz/ed

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