Unit 1

Topic 1.5.5
 Must learn: what is meant by a stakeholder

 Should learn: why stakeholders are

important to a business

 Could learn: how business decision can

affect stakeholders
http://www.tes.co.uk/teaching-r
esource/Who-are-stakeholders-
6173961/
 Anyone who has an interest (or stake) in a
business

 THINK! For Hodge Hill School, who are the

stakeholders?

(not steak-holders!))
Shareholders vs Managers

Employees

Customers

Suppliers

Local community
Shareholders vs Managers
Shareholders vs Managers

What should happen What should happen

to the profits? to the profits?
 Shareholders vs Managers

Want the profits to Want the profits re-

be paid out in invested in the
dividends business
Shareholders vs Employees
& Managers
 Shareholders vs Employees
& Managers

Want loyal, reliable Want job security and

and cheap workers high pay
Shareholders vs Customers
& Managers
 Shareholders vs Customers
& Managers

Want customers Want quality at low

prepared to pay high prices
prices
Shareholders vs Suppliers
& Managers
 Shareholders vs Suppliers
& Managers

Want suppliers who can Want to be paid

deliver quality stock on promptly to help
time and want to be their cash flow
able to pay on credit
 Shareholders vs Local community
& Managers

Want a company
Want to be able to run which respects the
the business with little wishes of the local
interference community and
sponsors local
events
 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.
Create a presentation that shows the stakeholders for
Keith and the effects of the following business decisions
he has recently made:
1. Increased annual salary of all employees by 5%
2. Has sourced replacement washing machines from B&Q
as it is cheaper than buying from Argon supplies.
3. Allow emergency call out for all customers both
evenings and weekends
4. Increased call out charges by 12% in emergencies
5. 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 are conflict of interest?
Create a mind map of all of the
stakeholders for the BT group.
For each stakeholder, investigate
how BT are trying to meet their
needs.
(5 Marks)