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Internal stakeholders - Employees, Shareholders, Managers
Explain the interests of internal stakeholders.

External stakeholders - Suppliers, Customers, Special interest groups, Competitors
Explain the interests of external stakeholders.

Stakeholder Conflict
Discuss possible areas of conflict between to overcome stakeholders.
Evaluate possible ways to overcome conflict. (HL)


Stakeholders:

Stakeholder – any person or organization that has a direct interest in and is affected by the
performance of a business

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Internal Stakeholders:

  • members of the organization
  • consist of employees, shareholders, managers and directors of organization


Stakeholder:
Description:
Main Interest:
Possible Conflicts:
Owners/
Shareholders
– individuals or
businesses who
hold an ownership
interest in the
organization
– return on investment
– profit maximization
– increase dividends
– capital gain
– a say in how the
business is
operated
– employees want higher pay,
increased benefits and better
working conditions
– suppliers want higher price
– directors want additional
autonomy and higher pay and
ownership
– customers wanting a lower price
– competitors wanting a higher
market share
– compliance costs with
government laws
– community wanting healthy
environment and support of
community projects
Managers/ Directors
– individuals who are
involved in the day-
to-day operations of
the organization
– responsible for
decision-making
– maximizing
compensation
– autonomy
– responsibility
– owners/shareholders wanting
higher profit
– employees wanting increased
say in business operation
– customers wanting a say in
product features
– suppliers wanting to be involved
in decision-making
Employees
– individuals who are
directly involved in
the production of the
good or delivery of
the service
– pay and other
financial benefits
– working conditions
– job security
– training and career
opportunities
– owners/shareholders wanting
higher profits
– directors/managers wanting
higher pay
– directors/managers wanting
increased autonomy
– customers wanting increased
service


External Stakeholders:

  • do not form part of the business but have direct interest or involvement inthe actions of the organization
  • consist of customers, suppliers, competitors, government, local community,and special interest groups


Stakeholder:
Description:
Main Interests:
Possible Conflicts:
Customers
– individuals who
purchase the goods
or services of the
organization
– price
– quality
– functionality
– service
– owners/shareholders wanting
higher profits
– directors/managers wanting
autonomy and higher profit
– government being too supportive
of business
Suppliers
– business who
supply goods and
services to the
organization
– maximize profits
from contracts
– timely payment of
customer bills
– strong working
relationships
– owners/shareholders wanting
higher profits
– managers/directors wanting
increased autonomy
– managers/directors wanting
higher profits
– customers wanting lower price
and higher quality
Competitors
– businesses who are
competition for the
customers of the
organization
– competitive
practices used by
the business
– impact on their
business success
– potential mutual
benefit (strategic
alliances)
– new product
development
– owners/shareholders wanting
higher profits
– directors/managers wanting
higher profits
– compliance with government
laws
Government
– the various levels of
government for
each geographic
location in which the
organization
operates
– compliance of
business with laws
– economic growth
(with low inflation)
– job creation
– taxes
– owners/shareholders wanting
higher profits
– directors/managers wanting
higher profits
– competitors wanting higher
profits
Special Interest Groups
– an organization that
advocates certain
issues such as
environment,
treatment of animals
– depends on the
group
– environment,
workplace safety,
pay, treatment of
animals, etc.
– conflict depends on the issues
advocated by the SIG
Community
– individuals (and
businesses) that
make up the local
area in which the
organization
operates
– employment
– pollution
(environment and
noise)
– contribution by
business to
community
– owners/shareholders wanting
higher profit
– directors/manager wanting higher
profits
– customer wanting lower prices
– competitors wanting higher
profits
– suppliers wanting higher profits