what effect do business decisions have on stakeholders?
DESCRIPTION
What Effect Do Business Decisions Have On Stakeholders?. Unit 1 Topic 1.5.5. Lesson Objectives. 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. - PowerPoint PPT PresentationTRANSCRIPT
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/teaching-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 Managers
Employees
Customers
Suppliers
Local community
vs
Shareholders Managersvs
Shareholders
What should happen to the profits?
Managers
What should happen to the profits?
vs
Shareholders
Want the profits to be paid out in dividends
Managers
Want the profits re-invested in the
business
vs
Shareholders & Managers
Employeesvs
Shareholders & Managers
Want loyal, reliable and cheap workers
Employees
Want job security and high pay
vs
Shareholders & Managers
Customersvs
Shareholders & Managers
Want customers prepared to pay
high prices
Customers
Want quality at low prices
vs
Shareholders & Managers
Suppliersvs
Shareholders & Managers
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
vs
Shareholders & Managers
Want to be able to run
the business with little
interference
Local community
Want a company which respects the wishes of the local community and sponsors local events
vs
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 forKeith and the effects of the following business decisionshe has recently made:
1. Increased annual salary of all employees by 5%2. Has sourced replacement washing machines from
B&Q as it is cheaper than buying from Argon supplies.
3. Allow emergency call out for all customers both evenings and weekends
4. Increased call out charges by 12% in emergencies5. 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)