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  1. 1. STARTERStak eholders - - - - - - - - - - - - are the peoplenor a t i o n Orga is groups with aninterest in the success or failure of an - - - - - - - - -- -. a business will want to look after those whocan help it succeed, which might include the pressor the government. These arey - - - - - - - Primarshareholders ,there may also be outsiders whothink of themselves as stakeholders, Whether ornot the organisationS e c o n d a r y to. These are the wants them- - - - - - - - - stakeholders. For example , animalConcer nedrights activists might become- - - - - - - - - - at the way a cosmetics businesstests new products on animals.secondary Stakeholder organisation primary concerned s
  2. 2. WHAT ARE STAKE HOLDERS?• Stakeholders are the people or groups with an interest in the success or failure of an organisation.• Stakeholders can affect or be affected by the organizations actions, objectives and policies.• Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers and unions
  3. 3. Not all stakeholders are equal. Some stakeholders are less important to a business than others. The business would class them as either ;Primary stakeholders orSecondary stakeholders
  4. 4. PRIMARY STAKEHOLDERSPeople or groups seen by the business to be vital to the organisation’s success or failure.• For a restaurant a supplier may be considered a primary stakeholder , as it’s entire reputation depends upon the quality of the food from the supplier.
  5. 5. GREGGS AND IT’S PRIMARYSTAKEHOLDERS Greggs believe its two key stakeholders are its customers and staff .It places it ‘s share holders in third place, on the grounds that as long as staff and customers are happy, the business will be ahowever declares it’s main Cadburys financial success. priority is to maximise returns for its shareholders.
  6. 6. KEY PRIMARY STAKE HOLDERSFor all organisations the key primary stake holders are;• The owners /shareholders• The staff /managers• The customers Some also regard suppliers as key stakeholders
  7. 7. SECONDARY STAKEHOLDERSPeople or groups who feel involved in the organisation’s success or failure , whether or not the management agree.
  8. 8. EXAMPLES OF SECONDARY STAKEHOLDERS• Local residents who may be affected by traffic noise from deliveries or by pollution from smelly or smoky factory or farm.
  9. 9. EXAMPLES OF SECONDARY STAKEHOLDERS• Local government, the organisation who will decide whether or not to allow future planning permission on for a warehouse for example.
  10. 10. EXAMPLES OF SECONDARY STAKEHOLDERSPressure groups, who may organise protests if they disagree with the way a business is run. For example Greenpeace will protest if that believe an organisation’s activities are damaging the environment.
  11. 11. SMALL BUSINESS STAKEHOLDERSFor small businesses the keys to success are customers, staff and suppliers. Treating them well and using them well are essential , this is partly because you never know when you might need them to help you. The key stakeholder of a small business is it’s staff , as the enthusiasm of well motivated staff rubs off onto customers and suppliers.
  12. 12. You are about to open a restaurant in a small village what are your primary and secondary stakeholders?
  13. 13. PRIMARY OR SECONDARY?Customers living in neighbouring villages primary
  14. 14. PRIMARY OR SECONDARY?Local journalists looking to write an article about the restaurant opening secondary
  15. 15. PRIMARY OR SECONDARY?Local residents objecting to increased traffic and parking problems secondary
  16. 16. PRIMARY OR SECONDARY?Local farmers supplying meat, vegetables and dairy to the restaurant primary
  17. 17. A restaurant opening in a small villagePrimary stakeholders Secondary stakeholdersCustomers living in Local journalists looking toneighbouring villages write an article about the restaurant openingLocal farmers supplying Local residents objecting tomeat, vegetables and dairy increased traffic andto the restaurant parking problems
  18. 18. SHAREHOLDERSMost public limited companies have little choice but to treat shareholders as their most important stakeholder. This is because shareholders have the right to vote directors out of office if they believe the business is badly run.British company law sets out that the primary duty of company directors Is to the shareholder . Therefore most companies will treat the shareholders as the single most important stakeholder.
  19. 19. CONCLUSIONBusinesses need to think about their public image and the issue of stakeholders simply urges firms to think more widely of the effects of their business activities.