IB Business Management - 1.4 Stakeholders + SWOT

Which of the following is both an internal and external stakeholder of a nuclear power plant? 

• The municipal government that has provided the plant with several tax credits and financial assistance over the years

• A bank to whom a company owes a long term loan

• A company shareholder who resides near the plant

• An environmental activist whose father works for the company

Answer explanation

The company shareholder is an internal stakeholder because the shares they own make them partial owners. They are also an external stakeholder as their proximity to the plant would make them a member of the local community.

Which stakeholder group would most likely have the following priorities: return on investment, profitability, capital gains and dividends?

• Managers

• Directors

• Customers

• Shareholders

Answer explanation

Which stakeholder group would most likely have the following priorities: return on investment, profitability, capital gains and dividends?

What is the role of the supplier as a stakeholder?

• To raise employment levels

• To provide the business with inventories needed for production

• To increase wages

• To highlight environmental concerns

A decision to introduce new machinery at a refinery could reduce the number of jobs but lead to higher profits. Which stakeholder groups have the most conflicted interests in this scenario?

• Customers and Consumers

• Government and customers

• Owners and customers

• Owners and employees

Answer explanation

Owners aim for high profits. They might not consider the impact of automation on their employees, who risk losing their jobs when the new machinery is introduced.

Which of the following is not an internal stakeholder group?

• Employees

• Middle managers

• Customer

• Shareholders

Answer explanation

Customers are external stakeholders. Their focus is on the business making products that meet their wants and needs. Middle managers, employees and shareholders are all internal stakeholders.

Stakeholder groups that are not directly involved in the running of an organization but have a direct interest in its operations.

• Internal Stakeholders

• External Stakeholders

TRUE OR FALSE

Shareholders (owners of limited liability companies) are a type of stakeholder group.

• True

• False

TRUE OF FALSE - Stakeholder mapping is a tool that involves organizing stakeholders in a matrix based on their degree of ownership and level of interest in the business.

• True

• False

Answer explanation

False - level of power and interest

SWOT analysis considers both internal factors and external factors in the business environment. Which two factors are internal?

• Strength and Opportunities

• Weakness and Threats

• Threat and Opportunity

• Strength and Weakness

This Business Management tool provides a framework for strategic analysis to allow managers to assess the current situation facing an organization.

• STEEPLE

• SWOT

• Business Plan

• Mission and Vision Statement