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Meeting the Needs of Stakeholders

BTEC Business

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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!
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Types of Stakeholder

Owners (I) Shareholders (I) Managers (I) Staff or employees (I) Customers (E) Suppliers (E) Community (E) Government (E)

I = Internal
E = External

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Internal and External Stakeholders

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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
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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?

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1. Owners and Shareholders

Characteristics of Stakeholders

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

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

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3. Employees or Staff:

Characteristics of Stakeholders

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

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4. Customers:

Characteristics of Stakeholders

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

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5. Suppliers:

Characteristics of Stakeholders

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

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6. Community:

Characteristics of Stakeholders

Firms and the communities they exist in are also in a two-way relationship The local community may often provide many of the firms 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

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7. Government:

Characteristics of Stakeholders

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

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