Stakeholders

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Types of Stakeholders

Internal and external stakeholders are individuals or groups of individuals affected by a business and its decisions.

Internal stakeholders

Employees are an internal stakeholder as they are affected by the decisions made by the business in terms of salaries and wages, recruitment policies and job security.

External stakeholders

Suppliers are an external stakeholder as they are affected by the decisions made by the business in terms of order quantities and payment terms.
Communities are an external stakeholder as they are affected by the decisions made by the business in terms of local jobs and traffic congestion in residential areas because of deliveries.
Customers are an external stakeholder as they are affected by the decisions made by the business in terms of products and services sold and prices charged.

Relationships with stakeholders

Businesses can manage their relationship with stakeholders using communication and consultation:
Communication can be used between a business and its stakeholders to share information, through methods such as email and newsletters, so that stakeholders can remain informed of developments within the business.
Consultation can be used to investigate the views and feeling of stakeholders so that they feel involved in any decisions made by the business, though the power of stakeholders to change decisions made is still limited as the business defines the stakeholder’s influence.

The power of stakeholders

Stakeholders can have different levels of power and interest and a business must consider this power and interest when deciding how to manage their relationship.
The business may wish to ensure that certain stakeholder groups remain satisfied and this may require consultation instead of communication.

Stakeholder Maps

A stakeholder map can be used to display the relative power and interest of different stakeholder groups.

The stakeholder map

Stakeholder maps

Stakeholders with high power and high interest will need to be managed closely and consultation may be appropriate for these individuals and groups.
Stakeholders with high power and low interest will need to be kept satisfied as they have the power to influence the business if they become dissatisfied.
Stakeholders with low power and low interest will need to be monitored though they lack influence and interest in many business decisions.
Stakeholders with low power and high interest need to be kept informed and consultation may be appropriate.

Examples of different stakeholders

For example, Morrison’s shareholders have high power, as they can vote at AGMs, and they have high interest, as they receive dividend payments, so Morrisons must manage this relationship closely.
For example, Google employees have high interest, though relatively low power, as they cannot influence decisions, so Google may decide to keep them informed of major changes, but they may not consult with staff.

Relationships with stakeholders

Power and influence can affect a business’ relationship with stakeholders, though there are several additional influences which can affect this relationship:
- The expertise and skill level of staff may affect the relationship between an employer and its employees as an employer may wish to consult with staff if they are able to contribute their expertise to a decision being made.
- The business’ performance may affect the relationship between stakeholders, as poor financial performance may require the business to build a stronger relationship with customers and suppliers so that more favourable payment terms can be negotiated.

1Business Organisation & Environment

1.1Introduction to Business Management

1.1.1Why Businesses Exist & Sectors

1.2Types of Organisation

1.2.1Sole Traders

1.2.2Limited Liability

1.2.3Non-Profit

1.2.4Franchising

1.2.5End of Topic Test - Franchising

1.3Organisational Objectives

1.3.1External Environments

1.3.2Business Mission & Corporate Objective

1.3.3Mission, Corporate Objectives & Strategy

1.3.4SWOT Analysis

1.3.5End of Topic Test - SWOT Analysis

1.4Stakeholders

1.4.1Stakeholders

1.5External Environment

1.5.1Social & Technological Environment

1.5.2Lifestyle & Technological Environment

1.5.3Corporate Social Responsibility

1.5.4Economic Environment

1.5.5Political & Legal Change

1.6Growth & Evolution

1.6.1Growth & Retrenchment

1.6.2Challenges of Growth

1.6.3Growth Models

1.6.4End of Topic Test - Diseconomies of Scale

1.6.5Internationalisation

1.6.6Sourcing Resources & Entering Markets

1.6.7End of Topic Test - Internationalisation

1.6.8Managing Internationalisation

1.6.9Impact of Internationalisation

1.7HL Only: Organisational Planning Tools

1.7.1Organisational Planning Tools

2Human Resource Management

2.1Functions & Evolution of Human Resource Management

2.1.1Setting Human Resource Objectives

2.1.2Human Resource Management

2.1.3Labour Turnover & Retention

2.1.4Labour Productivity

2.2Organisational Structure

2.2.1Organisational Structures

2.3Leadership & Management

2.3.1Managers

2.3.2Management Theories

2.3.3End of Topic Test - Management

2.4Motivation

2.4.1Motivating & Engaging Employees

2.4.2Taylor's Theory

2.4.3Maslow's Theory

2.4.4Herzberg's Theory

2.4.5Different Incentives

2.4.6Evaluating Incentives

2.5Organisational (Corporate) Culture

2.5.1Managing Organisational Culture

2.5.2Organisational Structures

2.6HL Only: Industrial/Employee Relations

2.6.1Improving Employer-Employee Relations

2.6.2Case Study - The Winter of Discontent

3Finance & Accounts

3.1Sources of Finance

3.1.1Internal Sources of Finance

3.1.2External Sources of Finance

3.1.3Factors for Financing

3.1.4End of Topic Test - Debt

3.2Costs & Revenues

3.2.1Costs & Revenues

3.3Break-Even Analysis

3.3.1Profit

3.3.2Break-Even Analysis

3.4Profitability & Liquidity Ratio Analysis

3.4.1Profitability Analysis

3.5Cash Flow

3.5.1Cash Flow

3.5.2Solutions to Cash Flow Problems

3.5.3Improving Cash Flow & Profits

3.6HL Only: Investment Appraisal

3.6.1Investment Appraisal

3.7HL Only: Budgets

3.7.1Cash-Flow & Budgets

4Marketing

4.1The Role of Marketing

4.1.1Setting Marketing Objectives

4.1.2Market Calculations

4.2Marketing Planning

4.2.1Marketing Mix

4.2.2Segmentation

4.2.3Niche & Mass Markets

4.3Market Research

4.3.1Market Research

4.3.2Market Mapping

4.3.3Methods of Market Research

4.4The 4 Ps

4.4.1Product Decisions

4.4.2Pricing Decisions & Price Skimming

4.4.3Pricing Decisions & Price Penetration

4.4.4End of Topic Test - Pricing & Competition

4.4.5Promotional Decisions

4.4.6Promotional Decisions 2

4.4.7Promotional Decisions 3

4.4.8Digital Marketing

4.4.9Evaluating Digital Marketing

4.4.10Case Study - The Marketing Mix & Promotion

4.4.11Place & Distribution

4.5HL Only: The Extended Marketing Mix

4.5.1The Extended Marketing Mix

4.6HL Only: International Marketing

4.6.1International Marketing

4.7E-Commerce

4.7.1E-Commerce

5Operations Management

5.1The Role of Operations Management

5.1.1Setting Operational Objectives

5.2Production Methods

5.2.1Production Processes Overview

5.2.2Production Processes

5.2.3Production Efficiency

5.2.4Technology & Production

5.3HL Only: Lean Prodution & Quality Management

5.3.1Importance of Quality

5.3.2Measuring & Identifying Quality

5.3.3Total Quality Management

5.3.4Evaluating Total Quality Management

5.3.5Case Study - Toyota Production System

5.4HL Only: Production Planning

5.4.1Capacity

5.4.2Productivity & Efficiency

5.4.3Technology & Efficiency

5.4.4Improving the Supply Chain

5.4.5Inventory

5.4.6Outsourcing

5.5HL Only: Research & Development

5.5.1Organisational Planning Tools

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