Activate - What are stakeholders? Anyone who has an interest (or stake) in or is affected by the activities of a business THINK! For CCS, who are the stakeholders? (not steak-holders!)

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Activate – Stakeholders for a small business In your tables, draw a mind map to show the possible stakeholders for a small business Stakeholders OwnerGovernmentSuppliers Banks / Lenders Local community Employees

Matching Activity Complete the worksheet matching each stakeholder to their interest in a business.

Why worry about stakeholders? Can influence what a business does As they will be affected by the business, they will try to get the business to do what they want. What does the owner want? What do workers want? What do suppliers want?

Conflict between Stakeholders It is quite common that stakeholders have different opinions about the decisions that a business makes and the direction they are heading in. Take a look at the following situations and decide which stakeholders it could impact and why they will have different opinions.

Lesson Objective To describe the impact of business decisions on stakeholders Learning Outcomes Describe what is meant by a stakeholder (E) Explain why stakeholders are important to a business (C) Identify how business decision can affect stakeholders (A)

Starter - Recap 1.Define ‘stakeholder’. 2.Give an example of 3 stakeholders to Ikea. 3.Why could there be a conflict between the shareholders (owners) and customers of Coca-Cola? EXTENSION: What stakeholders of Apple have been affected by the release of the iPhone 5? How will this change the way Apple operates in future? What about if the iPhone 5 was half the price it is currently selling for?

Demonstrate Keith owns a white goods repair company, fixing dishwashers, washing machines and other household goods. Keith employs 2 skilled workers who also go to customers houses and fixes appliances on-site. Keith has a business loan with NatWest bank and he is currently repaying them £300 per month. Keith’s main supplier is Argon Appliances who are his main provider for spare parts and replacement machines.

Demonstrate In pairs discuss and record the stakeholders for Keith and the effects of the following business decisions he has recently made: Increased annual salary of all employees by 5% Has sourced replacement washing machines from B&Q as it is cheaper than buying from Argon supplies. Allow emergency call out for all customers both evenings and weekends Increased call out charges by 12% in emergencies To buy a new premises in the town centre so he can complete repairs on appliances and store more stock. For each decision say: Who is affected? How that decision might affect them? Is there a conflict of interest?

Stakeholder Role Play Split into 4 equal groups (you have 30 seconds to do this!!) Each group will receive a scenario and a range of stakeholder cards. Divide the stakeholder cards between the group (some people may represent more than 1 stakeholder) Take it in turns, as the stakeholder you are representing to put forward how you are affected/interest by the activity of your business. Once you have all put your opinions forward now try to come to a solution by arguing for the interests of your stakeholder by where you are all happy with the outcome!!

Plenary List 2 things you have learnt in this topic. Write 1 question about something you would still like to know.

Organisation, Growth and Location You now have a good understanding on the impact stakeholders can have on the activity of a business. We will now look more into the structure and success of businesses.