The document discusses stakeholders and their interdependencies and conflicts of interest. It identifies internal stakeholders as owners, managers, and employees, and external stakeholders as suppliers, local community, government, and customers. For each stakeholder, it describes how they depend on each other to operate but also how their interests can conflict, such as owners wanting lower costs while employees want higher pay.

1. CFE Higher
Business
Manangement
STAKEHOLDERS

2. STAKEHOLDERS
For this course we
must look at the
relationships
between
stakeholders in
terms of their
dependency on each
other and the
conflict that exist in
their personal
interests.
Internal
Owners
Managers
Employees
External
Suppliers
Local
Community
Government
Customers

3. STAKEHOLDER: OWNER
Interdependence
 The owner is dependent
on employees to
complete the work, in
order to make sales.
Conflict
 The owners will want to
keep costs down
whereas employees will
want increased pay.

4. STAKEHOLDER: MANAGER
Interdependence
 The manager relies on
the employees to do
their job properly
Conflict
 The employees will
want safe working
conditions whereas the
managers will want to
keep costs low and
avoid spending money
where they can.

5. STAKEHOLDER: CUSTOMERS
Interdependence
 The customers are
reliant on the
employees of the
business to provide
good customer service.
Conflict
 The employees will
want to make as much
money for the business
as possible whereas
customers want to have
low prices.

6. STAKEHOLDER: SUPPLIERS
Interdependence
 The suppliers rely on
the business owners to
but their products.
Conflict
 Conflict occurs when
suppliers want to put
their prices up and
owners want to pay as
little as possible.

7. STAKEHOLDER: GOVERNMENT
Interdependence
 The government are
reliant on the business
owners to pay
corporation tax.
Conflict
 The owners want to pay
reduced taxes whereas
the government want to
maximise tax to pay for
the NHS etc.

8. STAKEHOLDER: LOCAL COMMUNITY
Interdependence
 The local community
are reliant on the
business owners to
supply the area with
jobs.
Conflict
 Conflict arises where
the local community
want the business to
reduce its carbon
footprint whereas the
business owners want
to keep costs as low as
possible.

9. QUESTIONS TO FINISH
1. Revision question: Describe the
impact of different internal factors
on business activity (4)
2. Outline 3 other conflicts of interest
that could exist between
stakeholders (3)