Internal and external stakeholders

Overview

Internal and external stakeholders and what owners, employees, customers, suppliers, government and the community each want, why their objectives conflict, and how each can influence a business.

What you need to know

Answer each one before you reveal it.

Questions from this subtopic

Each one with the model answer underneath.

1. 1

   What is a stakeholder?

   Model answer

   A stakeholder is any individual or group with an interest in, or affected by, the activities of a business.

2. 2

   What is the difference between internal and external stakeholders?

   Model answer

   Internal stakeholders work within the business, such as owners and employees. External stakeholders are outside it, such as customers, suppliers, government and the local community.

3. 3

   What are the main objectives of owners as stakeholders?

   Model answer

   Owners want the business to make a high profit and grow in value. Shareholders in a company also want regular dividends.

4. 4

   What do employees want from the business they work for?

   Model answer

   Employees want fair pay, job security and good working conditions. Many employees also want training and chances of promotion.

5. 5

   What do customers want from a business?

   Model answer

   Customers want value for money, meaning good-quality products at fair prices with reliable service.

6. 6

   What do suppliers want from a business?

   Model answer

   Suppliers want regular, large orders and to be paid on time. A long-term relationship gives a supplier a steady income.

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