This lesson we will be learning about 1.5 – Stakeholders and Conflicts What is a stakeholder?

NO IDEA I NEED HELP NEVER HEARD OF IT OK I CAN DO THIS WITH SUPPORT SOME GUIDANCE NEEDED NEARLY AT MY TARGET GOT IT! VERY CONFIDENT WILL HIT MY TARGET GRADE EXCEED TARGET Success Criteria < C Provide a definition of the term ‘stakeholder’ (define) Recognise and identify the key stakeholders in a given business context Describe how each stakeholder is affected C > Even better if you can (Target grade C or above) Explain the basic rights and responsibilities of different stakeholders B > Analyse each stakeholders needs and wants A >QOWC and SPAG LEARNING OBJECTIVES Investigate the stakeholders a business has and how different business decisions affect them

Starter Which individuals or groups are interested in or are affected by the activities of the business? McDonalds

Starter – Ideas Stakeholders Government e.g. HMRC Banks/Investors Shareholders Employees Suppliers Customers Local Community Managers Owners

Stakeholder An individual or a group which has an interest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful. ALL students must supplement their definition with 3 examples of a stakeholder Even better if you can identify two which might conflict

As a customer of McDonalds You are interested in.... Can you justify your answers?

S:\Hunter, Mrs\Year 9 GCSE (EdExcel)\1.5 Economic\Stakeholders (McDonalds).doc

Task 1 (15 minutes) ALL- stakeholders identified with their interests described Even better if you can do this in detail for all stakeholders ALL - For each stakeholder describe at least 2 interests e.g. Customers – They will want a good reliable, quality product at a fair price. McDonalds customers for example want a clean restaurant with burgers that are made from 100% beef. They want food that is warm and served quickly. Best of all if you can analyse the interests

STAKEHOLDERS CustomersGood prices; Good quality; good company image Employees Good employer; non-polluting; good company image, job security Local CommunityReduced pollution, noise and litter (low) Management Power; prospects; pay; perks; good company image Shareholders Return on investment; good dividends; good company image; long-term growth Government Pays taxes; meets legal requirements; provided employment SuppliersGood prices; stable demand; prompt payers; long-term growth

IDEAS CustomersGood prices; Good quality; good company image Employees Good employer; non-polluting; good company image, job security Local CommunityReduced pollution, noise and litter (low) Management Power; prospects; pay; perks; good company image Shareholders Return on investment; good dividends; good company image; long-term growth Government Pays taxes; meets legal requirements; provided employment SuppliersGood prices; stable demand; prompt payers; long-term growth

Inland revenue collects taxes on behalf of the government. Interested in the business’s profit and loss account. The amount of tax that a business pays to the inland revenue depends upon the level of that business’s net profits. Banks will be interested in a business’s accounts because they may have lent money and will want to see whether the business is able to pay it back. A bank may be especially interested in how much profit the business has made over the year.

Employees will want to see how much profit the business has made. If the business has made high levels of profits employees may be looking for an increase in wages. Also, high profits may mean that employees’ jobs are more secure. Suppliers will be interested in whether the business can pay for its supplies on time. The business’s balance sheet will give suppliers this information. Customers want to know if a business is financially sound. They will not want to place orders or pay deposits to a business that might not be able to continue trading.

Exercise Identify if the stakeholder is an internal or external stakeholder (list below) Key Internal – I External- E 1.Employees 2.Managers 3.Local community 4.Government 5.Customers 6.Suppliers 7.Shareholders

Exercise - Answers 1.Employees – I 2.Managers- I 3.Local community - E 4.Government - E 5.Customers - E 6.Suppliers – E 7.Shareholders- I

Question Describe two stakeholders which may conflict and why

Stakeholder Conflicts Each stakeholder has a different interest Some decisions made by businesses benefit certain stakeholders and don't benefit other stakeholders

Alternative Exercise Case studies from the Edexcel book 4 Examples P133 ‘Conflicting Objectives’ In your books explain where the conflict arises Which stakeholder/s does it benefit? How? Which stakeholder/s does it affect negatively? How? ALL: 1-3 SOME: 1-4 Write in full sentences

Over to you Resource – Textbook P135 Q2 and 3 only Q2- 6 marks Q3- 6 marks Even better if you can tell me who else might be affected in Q2? Internal or external stakeholder? Why? How? Is it a positive effect? Negative?

Plenary STAKEHOLDER Try thinking of a topic from unit 1 which relates to each letter E.g. S = Stakeholder (you can’t use this one!)

Mini Plenary Refer back to the objectives What is a stakeholder? Name 3 stakeholders Describe the needs of staff at Sports Direct CONFIDENCE CHART – WHERE ARE YOU? Test Yourself P135 Q1-3

Case Study – Quemby Case ALL - How will the local community be affected by this business? 5 marks Extension Question SOME - Discuss the benefits and drawbacks to customers of this service 6 marks

WILF ALL students will be able to Provide a definition of the term ‘stakeholder’ (define) Recognise and identify the key stakeholders in a given business context Describe how each stakeholder is affected Even better if you can (Target grade C or above) Explain the basic rights and responsibilities of different stakeholders Best of all if you can (Target grade B or above) Analyse each stakeholders needs and wants CONFIDENCE CHART – WHERE ARE YOU? Draw your hand in the back of your books and write down 4 stakeholders that are affected by school and one target on how to improve in your learning