BTEC Level 3 National Business Studies | Unit 1 – The Business Environment |
P2 – Describe the different stakeholders who influence the purpose of two
contrasting businesses.
A stakeholder is anyone who is interested in a business. Stakeholders can be
individuals, groups or organisations that are affected by the activity of the
business.
These can include:
Owners: interest in how much profit the business makes
Managers: apprehensive about the business and their salary
Employees: want to earn high wages and keep their jobs so the business
doesn’t become redundant
Customers: who want the business to make good products at an affordable
price
Suppliers: wants the business to continue to buy their products
Lenders: who want to be repaid on time and in full
The community which has a stake in the business as employers of local
people. Business activity also affects the local environment for instance
noisy machines in a warehouse factory, fumes exhausted out of the
factory.
There are two main types of stakeholders:
Internal stakeholders are groups within the business e.g. owners, workers
External stakeholders are groups outside a business e.g. the community
NatWest
Owner
A corporate owner is an individual or entity who owns a business entity in an
attempt to profit from the successful operations of the company. Generally has
decision making abilities and first right to profit.
An example of an owner is NatWest is the shareholder. A shareholder is a part
owner of the business to which the shares relate. Having made an investment in
the business, shareholders are concerned with assessing the profitability of their
investment in terms of dividends, or profits, and capital growth.
When the shareholder looks at the annual report of NatWest in which they have
invested, they will be mainly concerned with measures for instance earnings per
share, price/earnings ratio, intangible and tangible assets and dividend yield.
Manager
A manager is an individual who is in charge of a certain subset of the company. A
manager often has a staff of people who report to him or her. A manager sets
objectives, organises, motivates, communicates and develops people.
An example of a senior manager in NatWest is a director who ensures the
business is running in place with no errors. This is done by having meetings with
1
, BTEC Level 3 National Business Studies | Unit 1 – The Business Environment |
P2 – Describe the different stakeholders who influence the purpose of two
contrasting businesses.
each other to discuss the current status of the bank and check whether any
reforms need to be made.
Managers would be interested in the business because they may have a share in
the business so they will try what they can for the business not to fail. Another
reason to why managers would be interested is so the business does not go
redundant because of lack of work from the managers, so the managers will try
hard to increase productivity or make productivity consistent. The business being
redundant is a big risk because the managers might get sacked.
In addition managers are interested because they are in charge of the company
on a day-to-day basis and must have information from the rest of the business to
make critical decisions.
Employees/staf
An employee is someone who works for the business to help achieve their aims
and objectives. An employee is an individual who works part time or full time
under a contract of employment, they are often represented by a union.
An example of an employee in NatWest is a sales assistant, sales advisor, and
receptionist. These roles of employees have interest in the business because
they want a higher wage and they want to keep their jobs and work hard so the
business does not become redundant. Another reason to why an employee might
be interested is because they might be getting certain bonuses or benefits which
are quite unique and by not being interested those perks are taken away which is
not satisfactory for the employee.
Customers
A customer is a person or organisation that a marketer believes will benefit from
the goods and services offered by the marketer’s organisation. A customer is not
necessarily someone who is currently purchasing from the market. In fact,
customers fall into one of three customer groups; Existing customers, Former
customers and potential customers.
Examples of a customer in NatWest are young children, students, graduates,
over 18s and businesses. Each customer has a special account to suit their
needs. For example a student’s account is much more different to a business
account since income funds from a business would be more income funds of a
student account.
These customers would be interested in NatWest because they buy/use the
services of the business and want low prices or at least value for money. Another
reason to why they are interested in the business is because they want new and
improved products/services and want to be loyal to the brand.
Suppliers
A supplier is a business or individual that supplies a business with products or
services that a business uses. A supplier may be distinguished from a contractor
or subcontractor.
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