Unit 1 Topic 1.5.5

 Must learn: what is meant by a stakeholder  Should learn: why stakeholders are important to a business  Could learn: how business decision can affect stakeholders

http://www.tes.co.uk/te aching-resource/Who are-stakeholders 6173961/

 Anyone who has an interest (or stake) in a business  THINK! For Hodge Hill School, who are the stakeholders?

(not steak-holders!))

Shareholders vs Managers Employees Customers Suppliers Local community

Shareholders vs Managers

Shareholders What should happen to the profits?

vs Managers What should happen to the profits?

Shareholders Want the profits to be paid out in dividends vs Managers Want the profits re invested in the business

Shareholders & Managers vs Employees

Shareholders & Managers Want loyal, reliable and cheap workers vs Employees Want job security and high pay

Shareholders & Managers vs Customers

Shareholders & Managers Want customers prepared to pay high prices vs Customers Want quality at low prices

Shareholders & Managers vs Suppliers

Shareholders & Managers vs Want suppliers who can deliver quality stock on time and want to be able to pay on credit Suppliers Want to be paid promptly to help their cash flow

Shareholders & Managers vs Local community Want to be able to run the business with little interference Want a company which respects the wishes of the local community and sponsors local events

 Keith owns a white goods repair company, fixing dishwashers, washing machines and other household goods. Keith employs 2 skilled workers who also go to customers houses and fixes appliances on-site.  Keith has a business loan with NatWest bank and he is currently repaying them £300 per month.  Keith’s main supplier is Argon Appliances who are his main provider for spare parts and replacement machines.

Create a presentation that shows the stakeholders for Keith and the effects of the following business decisions he has recently made: 1.

Increased annual salary of all employees by 5% 2.

3.

Has sourced replacement washing machines from B&Q as it is cheaper than buying from Argon supplies.

Allow emergency call out for all customers both evenings and weekends 4.

5.

Increased call out charges by 12% in emergencies To buy a new premises in the town centre so he can complete repairs on appliances and store more stock.

   For each decision say: Who is affected?

How that decision might affect them?

Is there are conflict of interest?

Create a mind map of all of the stakeholders for the BT group. For each stakeholder, investigate how BT are trying to meet their needs.

(5 Marks)