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Qualifications Edexcel GCSE Business 1.5 Understanding external influences on business

1.5.1 Business stakeholders

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What is the primary role of shareholders in a business?
To invest capital and own a portion of the business, influencing major decisions
How can the local community be considered a stakeholder in a business?
They are affected by the business's operations, such as employment opportunities and environmental impact
Why might employees be concerned about a company's downsizing decision?
Fear of job loss, decreased morale, and uncertainty about future employment prospects
What impact would a wage increase have on shareholders?
Potential concern over reduced profits and dividends due to increased operational costs
How can pressure groups influence a business?
By campaigning for changes in business practices that align with their ethical or environmental concerns
What role does the government play as a stakeholder in businesses?
Regulating business practices, ensuring legal compliance, and protecting consumer rights
How does a business's activity affect its customers as stakeholders?
Through the quality, availability, and price of goods or services offered
What is a key concern for suppliers as stakeholders in a business?
Timely payments and the continuation of a mutually beneficial business relationship
How might the introduction of flexible working policies affect employees?
Increased job satisfaction, work-life balance, and potentially higher productivity
What potential conflict exists between a business's managers and its employees?
Disagreements over wages, working conditions, and management styles
Why are customers considered stakeholders in a business?
Their satisfaction and continued patronage directly impact the business's revenue and reputation
How does the closure of a business impact the local community?
Loss of jobs, reduced local commerce, and a gap in community services or entertainment options
What is the significance of identifying stakeholder interests for a business?
To understand and potentially align business strategies with stakeholder needs and expectations
How can stakeholder conflicts affect a business?
Damaged reputation, decreased employee morale, and potential financial losses