2. S AY WHAT YOU SEE

3. 1.5.5 W HAT EFFECT DO BUSINESS DECISIONS HAVE ON STAKEHOLDERS 1.5.5 S TAKEHOLDERS

4. I NFLUENCE OF THE S TAKEHOLDER ON B USINESS OBJECTIVES StakeholderStaffOwnerCompetitorsSuppliers Bank Manager Customers Local Community 1.5.5 S TAKEHOLDERS A stakeholder is anyone that has an interest in a business What do you think the objective of each stakeholder is?

5. I NFLUENCE OF THE S TAKEHOLDER ON B USINESS OBJECTIVES 1.5.5 S TAKEHOLDERS How do stakeholders influence a business?  Bank managers provide finance in the form of bank loans  Employees provide their services in return for income and job satisfaction  Communities expect a firm to create jobs and to behave responsibly  Suppliers provide goods and services in return for payment  Customers spend money in return for an appropriate quality of product Each stakeholder will clearly have an influence on the firm – whether it be providing finance, services or custom

6. I NFLUENCE OF THE S TAKEHOLDER ON B USINESS OBJECTIVES 1.5.5 S TAKEHOLDERS  Who are the stakeholders in your school/college? Produce a spider diagram showing the stakeholders for your school/college. For each stakeholder briefly state why they have an influence on your school/college

7. M EETING THE DEMANDS OF DIFFERENT S TAKEHOLDERS 1.5.5 S TAKEHOLDERS  Stakeholders often have different interests e.g. shareholders want higher dividends but employees want higher pay. This may cause a conflict of interest.  A business will have to prioritise who the most important stakeholders are and try to meet their interests first. Who are the most important stakeholders at your school/college. Make a list of your top five. What problems would arise if you failed to meet the specific interest of each stakeholder? Are there any conflicts of interest between stakeholders? How would you solve the problem?

8. 2 M INUTE T EST  What is meant by a stakeholder?  State 5 different stakeholders  Suggest two conflicts of interest between different stakeholders  If a small business were to shut down tomorrow which 2 stakeholders would be affected most? Why? End 1.5.5 S TAKEHOLDERS

9. MULTIPLE CHOICE 1.5.5 S TAKEHOLDERS 1. A business is awarded a new contract for producing 1000 tables. Which one of the following stakeholders would not benefit? □ A Employees at the business □ B The local community □ C Shareholders in the business □ D Competitors of the business □ E Suppliers to the business