Topic 8 Stakeholders. Higher Business Management
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1 Topic 8 Stakeholders Higher Business Management 1
2 Learning Intentions / Success Criteria Learning Intentions Stakeholders Success Criteria Learners should be aware of the differing objectives of groups of stakeholders in terms of: stakeholder conflict and resolution stakeholder interdependence. 2
3 Difference between and - why a stakeholder needs another stakeholder. - the disagreements that can occur between different stakeholders. 3
4 Stakeholders Owners and employees Owners and customers Employees and customers Owners and suppliers Owners and banks Owners and government Owners and the local community 4
5 Owners and Employees Owners need employees to carry out different tasks and employees need owners to pay their wages. Owners need employees to be as productive as they can and employees need owners to provide the necessary job training. Owners want to pay as low a wage as possible so that their profit is high whereas employees want high wages for their work. Owners want employees to work as many hours as they can whereas employees want to work as few hours as possible. 5
6 Owners and Customers Owners need customers to buy products from them to make profit and customers need owners to provide them with the product they want. Owners need customers to become loyal to increase market share and customers want to be rewarded for loyalty (e.g. discounts). Owners want to make as much profit as possible by charging the highest price they can whereas customers want as low a price as possible. Owners want to keep costs low by providing the cheapest possible service they can whereas customers want the best possible service (e.g. after-sales). 6
7 Employees and Customers Employees need customers to buy from an organisation so that they get paid and customers need employees to provide them with good customer service. Employees want customers to spend as much as possible to increase their commission whereas customers want as much discount as possible. 7
8 Owners and Suppliers Owners need suppliers to provide products on time and suppliers need owners to provide them with repeat orders. Owners need suppliers to provide a quality product at a suitable price to make a profit and suppliers need owners to pay their invoices within an agreed time to prevent cash flow problems. Owners want supplies for as low a price as possible whereas suppliers want to maximise their profits. Owners want to wait for as long as possible before paying their debts whereas suppliers want paid as quickly as possible. 8
9 Owners and Banks Owners need banks to provide them with affordable loans and banks need owners who can make repayments on time. Owners want interest rates on loans to be as low as possible whereas banks want to make as much profit as possible by charging higher interest rates. 9
10 Owners and Government Owners need the Government to have low tax rates and the Government needs owners to provide jobs. Owners need the Government to provide grants and the Government needs owners to regenerate local communities and unused pieces of land. Owners want low tax rates to maximise profits whereas the Government wants taxes to invest into the country, e.g. for the NHS. Owners want to dominate the market whereas the Government wants competition to encourage lower prices for customers. 10
11 Owners and the Local community Owners need local communities to support their business and the local community needs owners to provide jobs to decrease unemployment. Owners want to keep costs low to maximise profit whereas local communities want businesses to invest in community projects. 11
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