Unit 2 GCSE Business and Communication Systems STAKEHOLDERS

Learning Outcomes Students should be able to: • define the term stakeholder • demonstrate knowledge and understanding of the following different stakeholder groups that may have an interest in a business • discuss how the aims of these stakeholders may be in conflict Images © thinkstockphotos. co. uk

Stakeholder Definition A stakeholder is an individual, group or organisation that has an interest or concern in the activities and performance of an organisation. Stakeholders can affect or be affected, either positively or negatively, by the organisation. Images © thinkstockphotos. co. uk

Pupil Activity Working with a partner you have five minutes to: – identify the key stakeholders in your school – produce a spider diagram, recording the names of these stakeholders – be prepared to feedback to the class – based on the feedback from other pairs, add any stakeholder groups you hadn’t thought of to your diagram Images © thinkstockphotos. co. uk

SCHOOL STAKEHOLDERS Images © thinkstockphotos. co. uk

Pupils Parents Teaching Staff SCHOOL STAKEHOLDER S Board of Governors DENI Employers Local Community Support Staff Images © thinkstockphotos. co. uk

Pupil Activity Working in threes you have fifteen minutes to: – select two of these stakeholder groups or your teacher may allocate them to you – discuss why these stakeholders have an interest in your school – discuss why your school has an interest in them – provide examples of how these stakeholders could affect or be affected, either positively or negatively, by the school – be prepared to feedback to the class Images © thinkstockphotos. co. uk

Whole Class Activity Work with your class to: – Identify the stakeholders who have an interest in a business – produce a spider diagram, recording the names of these stakeholders Images © thinkstockphotos. co. uk

BUSINESS STAKEHOLDERS Images © thinkstockphotos. co. uk

Consumers Managers/ Suppliers Employees Financial Institutions BUSINESS STAKEHOLDERS Trade Unions Local Community Competitors Owners/ Shareholders Images © thinkstockphotos. co. uk

Pupil Activity Working in threes you have ten minutes to: – select two of these stakeholder groups or your teacher may allocate them to you – discuss why these stakeholders have an interest in a business – discuss why a business is likely to have an interest in them – provide examples of how these stakeholders could affect or be affected, either positively or negatively, by the business – be prepared to feedback to the class Images © thinkstockphotos. co. uk

Business Stakeholders Owners/shareholders Managers/employees Competitors Suppliers Consumers Financial institutions Trade unions Local community Images © thinkstockphotos. co. uk

Owners/Shareholders Interest & Conflict OWNERS • Profit focus – maximum return • Livelihood • Success • Reputation SHAREHOLDERS • Part owners of a limited company • Investment - shares - dividend • Attend the Annual General Meeting (AGM) and vote for the Board of Directors CONFLICT with the aims of: • Managers/employees/trade unions • Competitors • Suppliers • Consumers • Financial institutions • Local community Images © thinkstockphotos. co. uk

Managers/ Employees Interest & Conflict • • • Fair wage/salary Good working conditions Job security Training and development Career progression CONFLICT with the aims of: • Owners/shareholders • Consumers • Local community Images © thinkstockphotos. co. uk

Competitors Interest & Conflict • • • Price Products Quality Service Growth CONFLICT with the aims of: • Owners/shareholders • Managers/employees/ trade unions • Suppliers • Consumers Images © thinkstockphotos. co. uk

Suppliers Interest & Conflict • • Financial stability Prompt payment Continued regular orders Fair deal CONFLICT with the aims of: • Owners/shareholders • Competitors • Financial institutions Images © thinkstockphotos. co. uk

Consumers Interest & Conflict • • • Competitive prices Good range of products Quality Customer service Good reputation CONFLICT with the aims of: • Owners/shareholders • Managers/employees/trade unions • Competitors Images © thinkstockphotos. co. uk

Financial Institutions Interest & Conflict • Financial stability • Ability to meet repayments • Sound business plans CONFLICT with the aims of: • Owners/shareholders • Managers/employees • Competitors • Suppliers Images © thinkstockphotos. co. uk

Trade Unions Interest & Conflict • Fair treatment of workers • Negotiate a wage/salary at least in line with inflation • Good working conditions • Job security CONFLICT with the aims of: • Owners/shareholders • Consumers • Local community Images © thinkstockphotos. co. uk

Local Community Interest & Conflict • • • Corporate social responsibility Noise reduction Traffic Congestion Opening hours Care for the environment Community involvement CONFLICT with the aims of: • Owners/shareholders • Managers/employees • Consumers Images © thinkstockphotos. co. uk

Conflict between Stakeholders • • • Wages/salaries Job creation/job losses Changes to working conditions Profit distribution New government legislation Environmental threats Images © thinkstockphotos. co. uk

Pupil Activity Working individually you have fifteen minutes to answer the following past paper questions: • 2011 Question 3 d • 2014 Question 1 a • 2016 Question 1 d Images © thinkstockphotos. co. uk

Learning Check Can you: • define the term stakeholder • demonstrate knowledge and understanding of the following different stakeholder groups that may have an interest in a business: – owners/shareholders – managers/employees – competitors – suppliers – consumers – financial institutions – trade unions – local community • discuss how the aims of these stakeholders may be in conflict Images © thinkstockphotos. co. uk