Source: https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-8-stakeholders [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [BTEC](https://senecalearning.com/en-gb/revision-notes/btec.md) › [Business](https://senecalearning.com/en-gb/revision-notes/btec/business.md) › [Business: BTEC Level 3](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3.md) › Stakeholders # Stakeholders Business: BTEC Level 3 National Extended Diploma, topic 1.1.8 ## Types of Stakeholders Internal and external stakeholders are individuals or groups of individuals affected by a business and its decisions. ### Internal stakeholders ![Internal stakeholders](https://image-v2.cdn.app.senecalearning.com/2019-01/263f8d53-22a6-48c0-8b27-c094df94adc5/employee.jpg) - 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 ![External stakeholders](https://image-v2.cdn.app.senecalearning.com/2018-09/621d34f9-2324-446b-9a09-c35248e2a8a3/market-selling-sale-money-.jpg) - 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 ![Relationships with stakeholders](https://image-v2.cdn.app.senecalearning.com/2018-07/f91fa1a1-4567-4fc0-b01d-46c812725596/Email-Internet-Post-Message-.jpg) - 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 ![The power of stakeholders](https://image-v2.cdn.app.senecalearning.com/2018-07/815c4c02-fb6a-4a63-bee6-cb458e01ba69/Uprising-Fist-Power-Rebellion-Rebel-Resistance-.jpg) - 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 ![The stakeholder map](https://image-v2.cdn.app.senecalearning.com/2019-01/99747b82-fb7d-449a-ad32-7c0e5deddb83/2.3.1.2%20Stakeholder%20Map.jpg) ### Stakeholder maps ![Stakeholder maps](https://image-v2.cdn.app.senecalearning.com/2018-09/b1c56c92-153a-4d93-a9b9-ad44e2392450/afghanistan-map-geography-.jpg) - 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 ![Examples of different stakeholders](https://image-v2.cdn.app.senecalearning.com/2019-01/b02334d7-d669-434b-9f6c-66f641349a9d/morrisons.jpg) - 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 ![Relationships with stakeholders](https://image-v2.cdn.app.senecalearning.com/2019-01/054fa947-dc06-456b-9057-473c1f991089/staff-shake-hands.jpg) - 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. ## Test yourself on Stakeholders - Which type of stakeholder will need to be managed closely? - Which employees are more likely to be consulted? [Practise this topic for free](https://app.senecalearning.com/classroom/course/f0389213-3369-45a4-8126-07b001bb9007/section/2c0d8e9c-fbaa-4c60-89c0-52cf054df6f2/session) - Previous topic: [1.1.7 Multinational Companies](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-7-multinational-companies.md) - Next topic: [1.1.9 Influence of Stakeholders](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-9-influence-of-stakeholders.md) ## Business: BTEC Level 3 National Extended Diploma contents ### 1 Exploring Business - 1.1 Features of Business Organisations - [1.1.1 Sole Traders & Partnerships](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-1-sole-traders-and-partnerships.md) - [1.1.2 Private & Public Limited Companies](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-2-private-and-public-limited-companies.md) - [1.1.3 Types of Liability & Not-For-Profits](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-3-types-of-liability-and-not-for-profits.md) - [1.1.4 Purposes of Businesses](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-4-purposes-of-businesses.md) - [1.1.5 Purposes of Businesses 2](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-5-purposes-of-businesses-2.md) - [1.1.6 The Different Economic Sectors](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-6-the-different-economic-sectors.md) - [1.1.7 Multinational Companies](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-7-multinational-companies.md) - [1.1.8 Stakeholders](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-8-stakeholders.md) - [1.1.9 Influence of Stakeholders](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-1-9-influence-of-stakeholders.md) - 1.2 Organisation of Businesses - [1.2.1 Organisational Structure](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-2-1-organisational-structure.md) - [1.2.2 Types of Organisational Structures](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-2-2-types-of-organisational-structures.md) - [1.2.3 Business Aims & Objectives](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-2-3-business-aims-and-objectives.md) - [1.2.4 Business Aims](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-2-4-business-aims.md) - [1.2.5 Business Objectives](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-2-5-business-objectives.md) - 1.3 Business Environment - [1.3.1 External Influences](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-1-external-influences.md) - [1.3.2 Political & Legal Change](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-2-political-and-legal-change.md) - [1.3.3 Economic Environment](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-3-economic-environment.md) - [1.3.4 Social & Technological Environment](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-4-social-and-technological-environment.md) - [1.3.5 Lifestyle & Technological Environment](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-5-lifestyle-and-technological-environment.md) - [1.3.6 Corporate Social Responsibility](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-6-corporate-social-responsibility.md) - [1.3.7 The Competitive Environment](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-7-the-competitive-environment.md) - [1.3.8 Innovation](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-8-innovation.md) - [1.3.9 Risk & Uncertainty](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-9-risk-and-uncertainty.md) - [1.3.10 Porter's Five Forces](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-10-porters-five-forces.md) - [1.3.11 SWOT Analysis](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/1-3-11-swot-analysis.md) ### 2 Marketing Campaigns - 2.1 Marketing - [2.1.1 Setting Marketing Objectives](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-1-setting-marketing-objectives.md) - [2.1.2 Customer Needs](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-2-customer-needs.md) - [2.1.3 The Market](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-3-the-market.md) - [2.1.4 Competition & The Market](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-4-competition-and-the-market.md) - [2.1.5 Consumer Behaviour](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-5-consumer-behaviour.md) - [2.1.6 Market Research](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-6-market-research.md) - [2.1.7 Forms of Market Research](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-7-forms-of-market-research.md) - [2.1.8 Market Segmentation](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-8-market-segmentation.md) - [2.1.9 Cultural & Social Factors in Marketing](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-9-cultural-and-social-factors-in-marketing.md) - [2.1.10 Promotional Decisions 3](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-10-promotional-decisions-3.md) - [2.1.11 Pricing Strategies](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-1-11-pricing-strategies.md) - 2.2 Marketing Mix - [2.2.1 Marketing Mix](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-2-1-marketing-mix.md) - [2.2.2 Product Life Cycle](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-2-2-product-life-cycle.md) - [2.2.3 Pricing Decisions & Price Skimming](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-2-3-pricing-decisions-and-price-skimming.md) - [2.2.4 Pricing Decisions & Price Penetration](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-2-4-pricing-decisions-and-price-penetration.md) - [2.2.5 Promotional Decisions](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-2-5-promotional-decisions.md) - [2.2.6 Promotional Decisions 2](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-2-6-promotional-decisions-2.md) - [2.2.7 Promotional Decisions 3](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-2-7-promotional-decisions-3.md) - [2.2.8 Market Mapping](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/2-2-8-market-mapping.md) ### 3 Business Finance - 3.1 Sources of Finance - [3.1.1 Internal Finance](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-1-1-internal-finance.md) - [3.1.2 External Finance](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-1-2-external-finance.md) - [3.1.3 External Finance 2](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-1-3-external-finance-2.md) - [3.1.4 Sources of Business Finance](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-1-4-sources-of-business-finance.md) - 3.2 Financial Planning - [3.2.1 Revenue](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-2-1-revenue.md) - [3.2.2 Costs](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-2-2-costs.md) - [3.2.3 Cash & Cash Flow](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-2-3-cash-and-cash-flow.md) - [3.2.4 Cash & Cash Flow 2](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-2-4-cash-and-cash-flow-2.md) - [3.2.5 Break-Even Analysis](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-2-5-break-even-analysis.md) - [3.2.6 Profits](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-2-6-profits.md) - 3.3 Financial Statements - [3.3.1 Balance Sheets](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-3-1-balance-sheets.md) - [3.3.2 Income Statements](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-3-2-income-statements.md) - [3.3.3 Liquidity](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/3-3-3-liquidity.md) ### 4 International Business - 4.1 Globalisation - [4.1.1 Growing Economies](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-1-1-growing-economies.md) - [4.1.2 Specialisation & Trade](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-1-2-specialisation-and-trade.md) - 4.2 International Business - [4.2.1 Internationalisation](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-2-1-internationalisation.md) - [4.2.2 International Trade](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-2-2-international-trade.md) - [4.2.3 MNCS](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-2-3-mncs.md) - [4.2.4 Conditions that Prompt Trade](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-2-4-conditions-that-prompt-trade.md) - [4.2.5 Assessment of a Country](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-2-5-assessment-of-a-country.md) - 4.3 International Economic Environment - [4.3.1 Globalisation](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-3-1-globalisation.md) - [4.3.2 Factors Contributing to Globalisation](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-3-2-factors-contributing-to-globalisation.md) - [4.3.3 Protectionism](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-3-3-protectionism.md) - [4.3.4 The EU & the WTO](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-3-4-the-eu-and-the-wto.md) - [4.3.5 Trading Blocs](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-3-5-trading-blocs.md) - 4.4 Factors Affecting International Business - [4.4.1 Global Competitiveness](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-4-1-global-competitiveness.md) - [4.4.2 Ethics of Global Business](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-4-2-ethics-of-global-business.md) - [4.4.3 Controlling MNCs](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-4-3-controlling-mncs.md) - [4.4.4 Cultural & Social Factors in Marketing](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/4-4-4-cultural-and-social-factors-in-marketing.md) ### 5 Principles of Management - 5.1 Management & Leadership - [5.1.1 Managers](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-1-1-managers.md) - [5.1.2 Management Theories](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-1-2-management-theories.md) - [5.1.3 Managing Organisational Culture](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-1-3-managing-organisational-culture.md) - [5.1.4 Management Style](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-1-4-management-style.md) - 5.2 Theories of Motivation - [5.2.1 Motivating & Engaging Employees](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-2-1-motivating-and-engaging-employees.md) - [5.2.2 Taylor's Theory](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-2-2-taylors-theory.md) - [5.2.3 Mayo's Theory](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-2-3-mayos-theory.md) - [5.2.4 Maslow's Theory](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-2-4-maslows-theory.md) - [5.2.5 Herzberg's Theory](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-2-5-herzbergs-theory.md) - 5.3 Managing Change - [5.3.1 Change](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-3-1-change.md) - [5.3.2 Key Factors in Change](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-3-2-key-factors-in-change.md) - [5.3.3 Scenario Planning](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-3-3-scenario-planning.md) - [5.3.4 Managing Change](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-3-4-managing-change.md) - [5.3.5 Managing Strategic Implementation](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/5-3-5-managing-strategic-implementation.md) ### 6 Business Decision Making - 6.1 Business Principles & Practices - [6.1.1 Influences in External Environments](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-1-1-influences-in-external-environments.md) - [6.1.2 Product Decisions](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-1-2-product-decisions.md) - [6.1.3 Competitive Environment](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-1-3-competitive-environment.md) - [6.1.4 Corporate Strategy](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-1-4-corporate-strategy.md) - [6.1.5 Quantitative Sales Forecasting](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-1-5-quantitative-sales-forecasting.md) - [6.1.6 Legislation](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-1-6-legislation.md) - 6.2 Quality Management - [6.2.1 Importance of Quality](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-2-1-importance-of-quality.md) - [6.2.2 Measuring Quality](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-2-2-measuring-quality.md) - [6.2.3 Total Quality Management](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-2-3-total-quality-management.md) - [6.2.4 Evaluating TQM](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-2-4-evaluating-tqm.md) - 6.3 Human Resources - [6.3.1 Contracts](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-3-1-contracts.md) - [6.3.2 Recruitment](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-3-2-recruitment.md) - [6.3.3 Training a Workforce](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-3-3-training-a-workforce.md) - 6.4 Documents & Business Decisions - [6.4.1 Sales Forecasts](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-4-1-sales-forecasts.md) - [6.4.2 Managing Strategic Implementation](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-4-2-managing-strategic-implementation.md) - [6.4.3 Problems with Strategy](https://senecalearning.com/en-gb/revision-notes/btec/business/business-btec-level-3/6-4-3-problems-with-strategy.md)