Stakeholders study guide

An individual or group that can influence or is influenced by a business’s decisions.

Any individual or group that can affect or is affected by the business’s actions, including workers, owners, customers, suppliers, local community, and regulators.

An individual or group that can affect or is affected by the business’s activities, decisions, or outcomes.

Any individual or group that can affect or is affected by the activities of a business.

Exam practice

• Which of the following groups are considered stakeholders in a business?
• Explain why a small manufacturer should consider the local community as a stakeholder.
• Which of the following best describes the primary objective of workers in a small manufacturing business?
• Evaluate how a 10% increase in worker pay would affect the profitability of an independent retailer and the local community.
• Which stakeholder group is most likely to influence a small manufacturer’s decision to invest in new production technology to increase market share?
• Evaluate how a conflict between shareholders and employees can affect a small manufacturer’s ability to achieve its profit maximisation objective.
• Which of the following best explains why a retailer might face conflict between its suppliers and customers?
• Analyse how a small manufacturer might experience conflict between the objectives of its shareholders and its employees.