1. Meeting the Needs of Stakeholders
BTEC Business

2. 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!

3. Types of Stakeholder I = Internal E = External Owners (I)
Shareholders (I)
Managers (I)
Staff or employees (I)
Customers (E)
Suppliers (E)
Community (E)
Government (E)
I = Internal
E = External

4. 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

5. 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?

6. 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

7. Characteristics of Stakeholders
2. Managers:
organise
make decisions
plan
control
are accountable to the owner(s)

8. 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

9. Characteristics of Stakeholders
4. Customers:
Customers buy the goods or services produced by firms
They may be individuals or other businesses
Firms must understand and meet the needs of their customers, otherwise they will fail to make a profit or, indeed, survive

10. 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

11. 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

12. 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