5. Stakeholders

What is a Stakeholder?

• Any individual or organisation that is affected by activities of a Business.
• Someone who has a share in the business.
• Someone who likes the company.

What is a an internal stakeholder?

• A stakeholder from inside the company.
• A stakeholder from outside the company.

What is a an external stakeholder?

• A stakeholder from inside the company.
• A stakeholder from outside the company.

Employees have the following interests:

• Pay, Working Hours, Working Conditions, Training, Job Satisfaction, Promotions, Bonuses, Incentives, Discounts.
• Increase profits, Attention to the income and expenditure of the business. Competition. Keeping costs down – like staff pay and reducing waste. Cheapest suppliers
• To gain good dividend payments at the end of the financial year. Buy shares at a low price with the hope to sell for higher at a later stage.
• Quality of products/service, Range/choice, Customer service, After sales service, Price and value, Payment options, Stock levels

What could happen if you ignored your employees interests:

• Unhappy workforce – motivation drops, Efficiency levels drops, Poor customer service, poor quality of goods, Increased staff turnover, Increased staff absenteeism.
• Business is not how they want it – not their vision. No clear aim or mission. Reduced motivation from the top – follows down to the bottom. Lack of passion - lower profit margins. Business fails.
• They leave the company by selling their shares. The business gets a bad rep – potential shareholders are driven away. Share prices drop.
• Bad rep, Poor customer loyalty, Lack of business, Bad word-of-mouth, Reduced revenue and profit, Business fails.

Employers have the following interests:

• Pay, Working Hours, Working Conditions, Training, Job Satisfaction, Promotions, Bonuses, Incentives, Discounts.
• Increase profits, Attention to the income and expenditure of the business. Competition. Keeping costs down – like staff pay and reducing waste. Cheapest suppliers
• To gain good dividend payments at the end of the financial year. Buy shares at a low price with the hope to sell for higher at a later stage.
• Quality of products/service, Range/choice, Customer service, After sales service, Price and value, Payment options, Stock levels

What could happen if you ignored your managers interests:

• Unhappy workforce – motivation drops, Efficiency levels drops, Poor customer service, poor quality of goods, Increased staff turnover, Increased staff absenteeism.
• Business is not how they want it – not their vision. No clear aim or mission. Reduced motivation from the top – follows down to the bottom. Lack of passion - lower profit margins. Business fails.
• They leave the company by selling their shares. The business gets a bad rep – potential shareholders are driven away. Share prices drop.
• Bad rep, Poor customer loyalty, Lack of business, Bad word-of-mouth, Reduced revenue and profit, Business fails.

Shareholders have the following interests:

• Pay, Working Hours, Working Conditions, Training, Job Satisfaction, Promotions, Bonuses, Incentives, Discounts.
• Increase profits, Attention to the income and expenditure of the business. Competition. Keeping costs down – like staff pay and reducing waste. Cheapest suppliers
• To gain good dividend payments at the end of the financial year. Buy shares at a low price with the hope to sell for higher at a later stage.
• Quality of products/service, Range/choice, Customer service, After sales service, Price and value, Payment options, Stock levels

What could happen if you ignored your shareholders interests:

• Unhappy workforce – motivation drops, Efficiency levels drops, Poor customer service, poor quality of goods, Increased staff turnover, Increased staff absenteeism.
• Business is not how they want it – not their vision. No clear aim or mission. Reduced motivation from the top – follows down to the bottom. Lack of passion - lower profit margins. Business fails.
• They leave the company by selling their shares. The business gets a bad rep – potential shareholders are driven away. Share prices drop.
• Bad rep, Poor customer loyalty, Lack of business, Bad word-of-mouth, Reduced revenue and profit, Business fails.

Customers have the following interests:

• Pay, Working Hours, Working Conditions, Training, Job Satisfaction, Promotions, Bonuses, Incentives, Discounts.
• Increase profits, Attention to the income and expenditure of the business. Competition. Keeping costs down – like staff pay and reducing waste. Cheapest suppliers
• To gain good dividend payments at the end of the financial year. Buy shares at a low price with the hope to sell for higher at a later stage.
• Quality of products/service, Range/choice, Customer service, After sales service, Price and value, Payment options, Stock levels