Intermediate Business Management: Enterprise Unit Stakeholders

Internal Stakeholders Directly involved with a business like managers and employees

Directly involved with a business like managers and employees

External Stakeholders Not directly involved with a business but have an interest Shareholders can be either internal or external stakeholders

Not directly involved with a business but have an interest

Shareholders can be either internal or external stakeholders

Stakeholders and their Interest

Stakeholders Interest in Company Owners/Shareholders Manager Employees Profits, share price, large Dividends, stability of company Large profits, size of salary, career potential Career potential, job security, profits, health and safety

Owners/Shareholders

Manager

Employees

Profits, share price, large Dividends, stability of company

Large profits, size of salary, career potential

Career potential, job security, profits, health and safety

Government Local Community Customers Profits for tax purposes, levels of employment, pollution levels Provision of jobs, pollution, noise, traffic congestion Quality and price of product

Government

Local Community

Customers

Profits for tax purposes, levels of employment, pollution levels

Provision of jobs, pollution, noise, traffic congestion

Quality and price of product

Conflict of Interests Where an objective in the business can cause disagreements between stakeholders. For example: Customers want low prices; Shareholders/owners want as much profit as possible. OR, Managers want to keep costs down; employees want pay rises.

Where an objective in the business can cause disagreements between stakeholders.

For example:

Customers want low prices; Shareholders/owners want as much profit as possible.

OR, Managers want to keep costs down; employees want pay rises.

Stakeholders and their Influence

Stakeholders Can influence company by Shareholders Managers/Directors Employees Using their vote at the AGM to choose directors and level of dividend Making decisions like hiring staff The quality of their work and membership of trade unions

Shareholders

Managers/Directors

Employees

Using their vote at the AGM to choose directors and level of dividend

Making decisions like hiring staff

The quality of their work and membership of trade unions

Government Local Community Customers Bringing in new laws eg Health and Safety, giving grants and its policies on interest rates Making complaints to companies, boycotting products Deciding whether to buy or not buy the products or services

Government

Local Community

Customers

Bringing in new laws eg Health and Safety, giving grants and its policies on interest rates

Making complaints to companies, boycotting products

Deciding whether to buy or not buy the products or services