Stakeholders

Stakeholders

NCFE Level 1/2 Award in Business and Enterprise

Multiple Choice

What are stakeholders?

• People who are interested in or affected by the business

• Businesses who spy on other businesses

• People who eat steak

• Only the employees of the business

Stakeholders

Stakeholders are people or groups who have an interest - or “stake” - in the activities of a business

These can be split into two types

INTERNAL STAKEHOLDERS - These are people who work for the business. This means that they are INSIDE the business and involved daily

EXTERNAL STAKEHOLDERS - These are people who do not work for the business, and are NOT involved in the day-to-day running of the business. As such they are OUTSIDE the business.

Multiple Choice

The Government is interested in a business because:

• They will want to buy the products
• They want the business to comply with the law and pay taxes
• They want good quality products
• They want to be paid the money they are owed

Multiple Choice

Customers are interested in a business because:

• They want to be oaid they money they are due
• They want the employees to be paid a good salary
• They want the business to make the products they want at good prices
• They want to be paid a bonus

Multiple Choice

What influence does a manager have on the business?

• They may alter their workrate and take industrial action
• They may withdraw their investment
• They may make decisions which affect the business

Multiple Choice

What influence may Suppliers have on the business?

• They may change taxes
• They may protest about the business
• They may increase their prices
• They may choose not to buy the product or recommend it

Multiple Choice

A Bank is an external stakeholder?

• True
• False

Multiple Choice

A customer is an internal stakeholder?

• True
• False

Multiple Choice

An employee is an internal stakeholder?

• True
• False

Multiple Choice

A manager is an external stakeholder

• True
• False

Stakeholder Conflict

Unfortunately the different requirements of stakeholders can cause problems!

This results in arguments between different parties, about what the business should do

Open Ended

Examination Question One

Identify ONE external stakeholder in a business (1)

Open Ended

Examination Question Two

Analyze ONE benefit to a business of successfully engaging their stakeholders (2)