3.2.3 Stakeholders and Decision Making

Who are considered the most important stakeholders within a business?

• Customers

• Suppliers

• Owners

• Creditors

What do employees typically seek from their employment according to the text?

• High dividends and share price

• Job security and promotion prospects

• Low prices and high quality products

• Fair price and timely payments

Which group of stakeholders is interested in high quality products and services at low prices?

• Suppliers

• Customers

• Local community

• Government

What is one way a business might try to increase its profit, as mentioned in the text?

• By increasing product prices

• By cutting labor costs

• By reducing product quality

• By increasing taxes

What is the potential negative impact on the local community if a business relocates production abroad?

• Increased product prices

• Loss of local jobs

• Higher shareholder dividends

• Better working conditions

What does stakeholder mapping help a business decide?

• How to increase profits

• Which stakeholder group is most important

• How to reduce costs

• Which products to develop

Which stakeholders need to be managed most closely according to stakeholder mapping?

• Stakeholders with low power and low interest

• Stakeholders with high power and low interest

• Stakeholders with low power and high interest

• Stakeholders with high power and high interest

Decide whether the following groups are internal or external stakeholders: a) part-time staff b) pressure groups c) a bank that loans the business money

• Internal

• External

• External

Give one example where two different stakeholders have conflicting interests.

• Shareholders and employees

• Customers and suppliers

• Local residents and local council

• Employees and local media

Who are the least important stakeholders in the Italian restaurant above?

• Shareholders

• Local residents

• Employees

• Suppliers