Define Stakeholder
A Stakeholder is any individual, group or organisation with a direct interest ot involvement in the business
Define Internal Stakeholders
Stakeholders who one who work directly in the business or have some ownership in the business.
They are :
- Shareholders
- Managers
- Employees
Define External Stakeholders
Stakeholder are the ones who are not involved in the business directly.
They are:
- customers
- suppliers
- lenders
- local communities
- government
- Competitors
- pressure groups
Internal Stakeholders
1. Owners / Shareholders
Expectation from the business
- Should be profitable and other good dividends and should have good growth
- Managers should communicate on a continuous basis
Responsibilities towards the business
- Treat Management and employees fairly and compensate them sufficiently
2. Managers
Expectation from the business
- Get compensation and incentives
- Get higher responsibilities and recognition
Responsibilities towards the business
- Take effective decision and rin the business efficiently to acheive high grow for profitability
3. Employees
Expectation from the business
- Get good compensation
- Get recognition
Responsibilities towards the business
- Perform the task to the best of their ability
Internal Stakeholders
1. Customers
Expectation from the business
- Get good quality products
- Get timely service
Responsibilities towards the business
- Pay in time
- Giving feedback if any
2. Suppliers
Expectation from the business
- Get Payments on time
- Growth in order placed by the business
Responsibilities towards the business
- Provide good quality products in a timely manner
3. Lenders
Expectation from the business
- Repayment in time
- Growth in the loan taken by the business
Responsibilities towards the business
- Offer lower interest charged and quick service
- Penalties in the case of minor defaults should be low
4. Local Communities
Expectation from the business
- should not cause any troubles in terms of pollution, traffic, etc.
- Generate employment
Responsibilities towards the business
- Provide co-operational and should be peaceful
5. Government
Expectation from the business
- Pay taxes on time and should abide by the laws
- Grwoth causing less unemployement and more economic growth
Responsibilities towards the business
- Law & Order
- Good supply of utilities, _ _ _ _ _ _
6. Competitors
Expectation from the business
- They may compare the performance of the business with that of themselves
Responsibilities towards the business
- NONE
7. Pressure Group
Definition
A Group of individuals or organisation with a common interest who place demands an organisation to act in a particular way
Example:
Enviromental pressure group may pressurize business to stop some activities that may be causing damage to the environment
Expectation from the Business
- Acts as per the interest of the pressure group
Responsibilities towards the business
- Not causing unnecessary negative publicity or legal trouble
Conflict
Favourable Stakeholders
| Stakeholder | |
|---|---|
| Owner | profit, dividends & Share may increase |
| Employees | Increased wages or improved working conditions |
| Suppliers | May recieve higher price for suppliers |
Unfavourable Stakeholders
| Stakeholder | |
|---|---|
| Owner | Sales may decline |
| Employees | Sales decline will result in job loss |
| Customers | Products are no longer affordable |
| Competitors may also increase prices | |
| Pressure Group | If the product is a neccessity it may affect people adversely |
Favourable Stakeholders
| Stakeholder | |
|---|---|
| Owner | profit, dividends & Share may increase |
| Customer | Lower price of product |
Unfavourable Stakeholders
| Stakeholder | |
|---|---|
| Owner | Employee disatisfaction may cause poor quality |
| Customers | Quality may reduce |
| Employees | Salaries may not increase which will increase the workload |
| Suppliers | May get lower price of supplies |
| May lose business to a lower costing supplier |