This presentation provides an overview of the key points in this chapter. Note for tutors: If you wish to print out these slides, with notes, it is recommended that, for greater clarity you select the ‘pure black and white’ option on the PowerPoint print dialogue box.
The term ‘vested interest’ could usefully be introduced at this point. The obvious point that each student is a stakeholder in the school or college – and in organisations he/she visits as a customer or member applies here.
The term ‘directors’ could be added to employees and managers. The common interests of owners and shareholders (eg profit) will help to link these groups. Any current issues in the local community/papers could be highlighted. Students may not know the term ‘pressure group’ or may have a narrow view of it, eg environmental groups such as Friends of the Earth or Greenpeace. It would be useful at this point to extend this perception to all groups which represent their members or other sections of society, eg trade unions, charities, professional associations etc. Groups already studying Unit 3 may have fewer problems with the concept of financiers than those who have not yet started that Unit.
The next slide gives examples of the difference.
Hopefully students will recognise that the second and third are those with the power. It is useful to test if students can identify why this is so.
It is useful to link this slide and the following one to the way in which stakeholder groups often respond to different types of changes made by an organisation, such as increasing prices or announcing redundancies. Students could be asked to identify one change in each case which would a) negatively affect the group and b) positively affect the group.
This slide is an extension of the last one. Again students could be asked to identify positive and negative changes and possible responses.
The examples shown on the slide may need to be discussed in greater detail. It might be interesting to ask students to identify one change the school/college could make which would suit staff but not students (or vice versa).
This slide summarises the main points to be remembered by students.
What are stakeholders? <ul><li>People or organisations with a special interest in a business. </li></ul><ul><li>This is normally because they are directly affected by the business and how it operates – both now and in the future. </li></ul>
Types of stakeholders The government The local community Owners and shareholders Employees and managers Customers Financiers Pressure groups Suppliers Stakeholders
Power and influence <ul><li>Some stakeholders are powerful . They can influence how the business operates. </li></ul><ul><li>Some stakeholders have little power. The business can virtually ignore their views. </li></ul>
Identify the powerful <ul><li>Which three have the power? </li></ul><ul><li>An individual employee in a large firm </li></ul><ul><li>A bank which has lent a lot of money to a small firm </li></ul><ul><li>A supplier of a major product, eg Microsoft </li></ul><ul><li>A small supplier to a large supermarket </li></ul><ul><li>An important customer of a small firm </li></ul>
Stakeholder interests 1 <ul><li>All stakeholders have different types of interests: </li></ul><ul><li>Customers – price, quality, range of supplies, opening hours, facilities, etc </li></ul><ul><li>Employees – pay, working conditions, job security </li></ul><ul><li>Owners/shareholders – profit, share price, dividends </li></ul><ul><li>The local community – road building, pollution, safety, house values, jobs </li></ul>
Stakeholder interests 2 <ul><li>Government – legal issues, environmental issues, competition </li></ul><ul><li>Pressure groups – interests of members and those they represent </li></ul><ul><li>Suppliers – price paid for their supplies, further orders </li></ul><ul><li>Financiers – profits, return on money invested, repayments of loans </li></ul>
Conflict and stakeholders <ul><li>Local community against expansion of business, employees want job security </li></ul><ul><li>Shareholders want high dividends, managers want to use profits for investment </li></ul><ul><li>Suppliers want high prices for goods they supply, customers want low selling prices </li></ul>Stakeholders with different interests may be in conflict, eg
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Stakeholder summary <ul><li>All stakeholders have an interest in a business. </li></ul><ul><li>Different groups have different interests </li></ul><ul><li>Interests may conflict </li></ul><ul><li>Business will be most likely to respond to the most powerful groups </li></ul>