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Stakeholders (External (Customers (Vital to the survival of a business.…
Stakeholders
External
Customers
Vital to the survival of a business. The business will work in function to the business - find out exactly what the wants and needs are to produce relevant output - MARKET RESEARCH.
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Suppliers
Without reliable suppliers, the business cannot guarantee it will have sufficient high quality raw materials required.
Crucial for a business to maintain good relations for negotiation and reliance on the materials required.
Government
- Business have to pat taxes - corporation, VAT and Business rates
- Comply to legislations aimed at protecting customers, employees and local community
- Economic policies = interest rates or incentives, initiatives.
Local Community
Businesses can provide employment and will produce and sell much of their output locally. Investments in the community may also be made.
However, many problems may also be caused due to pollution, congestion etc. These may outweigh the benefits.
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Internal
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Shareholders
Financial interest in the performance of the business due to invested money. They expect / hope the company will grow so they will receive a return on their invetsment
Return in 2 forms:
A rise in the share price - so they can sell their shares at a higher price that what they purchased and make a profit
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They are entitled to vote each year to elect the board of directors - they will run the company on their behalf
Employees
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Are encouraged to be involved in multi-skilled team work, problem solving and decision making - having a significant input to the workings of the business.
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