Stakeholders A2 Stakeholders and their influence

Transcript:Stakeholders A2 Stakeholders and their influence:
Stakeholders A2 Stakeholders and their influence Stakeholders are anyone with an interest in the actions of a business. Draw a spider diagram to show the potential stakeholders of a business. Categorise them as internal or external. Stakeholders In this topic you will learn about Stakeholders Internal e.g. managers, employees, owners External e.g. suppliers, lenders, competitors, debtors, creditors, customers, government agencies and departments (local, national, international), communities (local, national, international), pressure groups, interest groups The influence of stakeholders on business success, e.g. shareholder value; customers as long-term assets (strong customer service enables customer loyalty and retention); employee involvement, corporate social responsibility (community groups and interest groups) Stakeholders Stakeholders are anyone with an interest in the actions of a business In pairs make sure you understand all of the terms. Write a definition of each one e.g. a debtor is someone who owes the business money such as a customer who has bought a product but not yet paid for it. Stakeholders Stakeholder needs should be considered when making decisions They will influence a business and affect its ability to achieve success Different stakeholders will have different needs e.g. An employee will need job security, a fair wage and safe working conditions A customer will need choice of products, quality, fair price and good customer service Because stakeholders have different needs there can be conflict e.g. An owner may want to maximise profit by paying the lowest wages possible and charging the highest price Consider stakeholder needs and potential conflict. This may help you write evaluatively about stakeholders, moving you towards the distinction criteria for learning aim A. The influences of internal stakeholders on business success Remember these are only examples, in your assignment you must be specific to your businesses and show evidence of independent research. Influences on the relationship with stakeholders Leadership style Mission and objectives including: Financial Social Ethical Environmental Stakeholder power and interest Market conditions including competition External influences e.g. legislation Business ownership How to manage the relationship with different stakeholders Managing the relationship with different stakeholders includes: Communication Keep informed Two way as well as one way Involve third parties e.g. trade unions, pressure groups, experts Consultation Share proposals and seek opinions early in the decision making process Stakeholders Businesses use stakeholder mapping to help inform decision making and communication This can have a strong impact on the relationship with stakeholders Stakeholder mapping shows the relative power