Topic 1.5
1.5.1
A stakeholder is an individual or a group that has an interest in and is affected by the
activities of a business.
All stakeholders are linked.
The actions of one stakeholder are likely to
affect another.
Conflicts are likely to occur between
stakeholders if they have different interests.
Positive effects on stakeholders:
● Shareholders receive a return on their
investment (dividends)
● Employees receive income, rewards,
financial security and status.
● Customers receive high-quality
products
● Local community may benefit from
development and investment in local.
● The government collects tax.
Negative effects stakeholders:
● Local community may suffer because
of the environmental problem brought
to the local by the business.
● Government needs to monitor and
regulate business activity.
● Employees may lose their jobs and
income (if in conflict).
● Shareholders may lose their
investments.
● Pressure groups protest against
unethical business activity and damage
the business’s reputation.
1.5.2
Businesses use technology to gain a competitive advantage over their rivals.
Types of technology that influence business activity:
- Ecommerce
- Social media
- E-payment (apple pay, google pay etc)
- Digital communication (email, text etc)
How technology affects business activities:
Costs Can be a HUGE investment, but in the long term, improves
efficiency and reduces costs.
Sales Innovating products can increase sales. Businesses can improve
customer service by using digital communications. It’s also more
convenient for the customers to pay in-store or buy online.
Marketing The business needs to figure out ways to use the technology to
mix increase sales. For example, to make promotions for customers that
purchase online.
1.5.1
A stakeholder is an individual or a group that has an interest in and is affected by the
activities of a business.
All stakeholders are linked.
The actions of one stakeholder are likely to
affect another.
Conflicts are likely to occur between
stakeholders if they have different interests.
Positive effects on stakeholders:
● Shareholders receive a return on their
investment (dividends)
● Employees receive income, rewards,
financial security and status.
● Customers receive high-quality
products
● Local community may benefit from
development and investment in local.
● The government collects tax.
Negative effects stakeholders:
● Local community may suffer because
of the environmental problem brought
to the local by the business.
● Government needs to monitor and
regulate business activity.
● Employees may lose their jobs and
income (if in conflict).
● Shareholders may lose their
investments.
● Pressure groups protest against
unethical business activity and damage
the business’s reputation.
1.5.2
Businesses use technology to gain a competitive advantage over their rivals.
Types of technology that influence business activity:
- Ecommerce
- Social media
- E-payment (apple pay, google pay etc)
- Digital communication (email, text etc)
How technology affects business activities:
Costs Can be a HUGE investment, but in the long term, improves
efficiency and reduces costs.
Sales Innovating products can increase sales. Businesses can improve
customer service by using digital communications. It’s also more
convenient for the customers to pay in-store or buy online.
Marketing The business needs to figure out ways to use the technology to
mix increase sales. For example, to make promotions for customers that
purchase online.
