The Role Of Stakeholder Groups Involved In Business Activity:
Bayani Gaba-gaba
A single decision, such as a factory closing, ripples out to touch owners, workers, customers, suppliers and a whole local community at once, and each of them wants something different from it. These groups are a business's stakeholders, and understanding what they want is the key to seeing why business decisions are so rarely simple.
In this lesson you will learn to identify the internal and external stakeholders of any business, state the objective each one pursues, and explain how those objectives clash, so that pleasing one group often means disappointing another. You will leave able to analyse the winners and losers behind any business decision.
Manufura
- Main internal and external stakeholder groups
- Objectives of different stakeholder groups
- How these objectives might conflict with each other, use examples
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- Which of these is an internal stakeholder of a business? A. a customer B. a supplier C. an employee D. the local community Answer: C
- The main objective of a business's owners is usually to: A. pay the lowest possible wages B. earn a good profit and return C. avoid all taxes D. reduce customer prices Answer: B
- Which stakeholder most wants the business to be repaid on time with interest? A. a customer B. an employee C. a bank D. a supplier Answer: C
- Building a new factory may create a conflict because it gives the community jobs but also: A. higher profits B. pollution and noise C. lower taxes D. more dividends Answer: B
- Which pair of stakeholders most directly conflict over the price charged? A. owners and managers B. owners and customers C. suppliers and banks D. government and community Answer: B
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