Stakeholders and Business Activity
Task 1
A stakeholder is any person, group of people or company who has interest in a business.
The decisions a business makes can be influenced by their stakeholders, therefore it is
important for a business to understand and know who their stakeholders are.
There are two different types of stakeholders these are internal and external. Internal
stakeholders are any person who is directly involved within the business such as managers,
employees and shareholders. External stakeholders such as customers, the government
and suppliers are those who have interest in the company but are from outside the business.
There are many ways stakeholders can influence business operations, some affecting the
business more than others. Stakeholders can affect businesses both positively and
negatively and can potentially want different things from the business which can cause
conflict.
Internal stakeholders such as employees, could affect the business by not turning up to a
shift, or not working to the best of their abilities, which in turn could affect a business’s
customer service causing a knock on effect potentially giving the business a bad name. On
the flip side managers, who are another example of internal stakeholders, can directly affect
the business by helping to develop other members of staff, by doing this it can positively help
other team members progress professionally and be able to improve their skills-set, which in
turn would help the overall business improve with better quality staff.
Suppliers who are an external stakeholder could increase their prices for the goods a
business usually needs from them. If this happens a business might not be able to afford to
buy from them anymore, which could result in loss of product. To combat this a business
usually would have to either look for an alternative, which might mean reducing quality or
discuss options with their current supplier to try and maintain good working relationships.
Another external stakeholder would be customers, customers can affect the business in a
positive way by leaving reviews, reviews are an excellent way for a business to find out what
they can do to improve and also what things they are doing right.
To summarize there are many different types of stakeholders and they can all affect
businesses in different ways, therefore a business needs to be aware of who they are and
how the stakeholders can influence them.
Task 2
The three sectors of the economy include primary, secondary and tertiary, all of which are
important to the business world and can be linked with each other.
The primary sector is any business that involves the obtaining or extraction of raw materials.
This could mean mining for coal, farming livestock for meat or even obtaining wool from
sheep shearing.
Task 1
A stakeholder is any person, group of people or company who has interest in a business.
The decisions a business makes can be influenced by their stakeholders, therefore it is
important for a business to understand and know who their stakeholders are.
There are two different types of stakeholders these are internal and external. Internal
stakeholders are any person who is directly involved within the business such as managers,
employees and shareholders. External stakeholders such as customers, the government
and suppliers are those who have interest in the company but are from outside the business.
There are many ways stakeholders can influence business operations, some affecting the
business more than others. Stakeholders can affect businesses both positively and
negatively and can potentially want different things from the business which can cause
conflict.
Internal stakeholders such as employees, could affect the business by not turning up to a
shift, or not working to the best of their abilities, which in turn could affect a business’s
customer service causing a knock on effect potentially giving the business a bad name. On
the flip side managers, who are another example of internal stakeholders, can directly affect
the business by helping to develop other members of staff, by doing this it can positively help
other team members progress professionally and be able to improve their skills-set, which in
turn would help the overall business improve with better quality staff.
Suppliers who are an external stakeholder could increase their prices for the goods a
business usually needs from them. If this happens a business might not be able to afford to
buy from them anymore, which could result in loss of product. To combat this a business
usually would have to either look for an alternative, which might mean reducing quality or
discuss options with their current supplier to try and maintain good working relationships.
Another external stakeholder would be customers, customers can affect the business in a
positive way by leaving reviews, reviews are an excellent way for a business to find out what
they can do to improve and also what things they are doing right.
To summarize there are many different types of stakeholders and they can all affect
businesses in different ways, therefore a business needs to be aware of who they are and
how the stakeholders can influence them.
Task 2
The three sectors of the economy include primary, secondary and tertiary, all of which are
important to the business world and can be linked with each other.
The primary sector is any business that involves the obtaining or extraction of raw materials.
This could mean mining for coal, farming livestock for meat or even obtaining wool from
sheep shearing.
