Identify the main stakeholders of a business - owners, employees, customers, suppliers and the local community - and describe what each one wants

What this dot point is asking

You need to identify the main stakeholders of a business and say what each one wants. A stakeholder is any person or group that has an interest in the business or is affected by what it does. The main ones are the owners, the employees, the customers, the suppliers, and the local community. Be ready to give a real example of each and a sensible want, and to explain that a stakeholder does not have to buy from the business to be affected by it.

The answer

What a stakeholder is

A stakeholder is any person or group that has an interest in a business or is affected by what it does. Some stakeholders are inside the business, such as the owner and the staff. Others are outside, such as customers, suppliers, and the people living nearby. The word "stake" means they have something to gain or lose from how the business does.

The main stakeholders and what they want

Owners

The owners want the business to do well and to earn a profit, because the profit is their reward and the business may be their main income.

Employees

The staff want fair pay, a safe place to work, fair treatment, and secure jobs. If the business does well, their jobs are safer.

Customers

Customers want good-quality goods or services, friendly and fast service, and fair prices. They will go elsewhere if they are not happy.

Suppliers

Suppliers are the businesses that sell materials or stock to the business. They want regular orders and to be paid on time.

The local community

The people living and working nearby are affected even if they do not buy anything. They may want new jobs and a convenient place to shop, but may worry about litter, noise, or traffic.

Stakeholders can disagree

Different stakeholders want different things, and these can clash. Customers want low prices, but owners want a good profit, and employees want higher pay. A good business tries to keep its main stakeholders reasonably happy at the same time, because it needs all of them.

Examples in context

Example 1. A supermarket in a neighbourhood. Its stakeholders include the owners (who want profit), the cashiers and shelf-stackers (who want fair pay and safe work), the shoppers (who want fresh stock and low prices), the suppliers who deliver the goods (who want steady orders and prompt payment), and the residents nearby (who want convenience but may dislike delivery-lorry noise). One business, many stakeholders, each with a different interest.

Example 2. A hotel and its local community. A new hotel brings jobs for cleaners, cooks, and front-desk staff, and customers for nearby shops, which the community welcomes. But it may also bring more traffic and noise, which some residents dislike. This shows why the local community is a stakeholder even though most residents never stay at the hotel.

Try this

• Cue. State what is meant by a stakeholder, then list four stakeholders of a clothing shop. Remember the meaning covers both having an interest in and being affected by the business, and cover inside groups (owner, staff) and outside groups (customers, suppliers, community).

• Cue. A noodle stall raises its prices. Explain how this affects two different stakeholders in different ways. Think about how customers feel about higher prices versus how the owner feels about the extra profit.

• Cue. Explain why the local community is a stakeholder of a new factory, giving one benefit and one worry. Link "stakeholder" to being affected by the business, then weigh jobs and convenience against noise, litter, or traffic.