Stakeholders
Identify stakeholder interests and influence and analyse how organisational decisions affect different groups.
How to study National 5 Business Management
Learn the concept, apply it to a real organisation, trace the consequence and make a decision supported by financial or qualitative evidence.
Core concepts
Concept 1
Stakeholders include owners or shareholders, employees, banks, customers and suppliers.
Exam cue: Name a stakeholder that is specific to the case.
Concept 2
The local community and government are also stakeholders.
Exam cue: Distinguish the stakeholder’s interest from the method of influence.
Concept 3
Each stakeholder has an interest in the organisation and can influence or be affected by decisions.
Exam cue: Explain both sides of a conflict before recommending a response.
Concept 4
Stakeholder objectives may conflict, requiring trade-offs and justified decisions.
Risk pitfalls and guardrails
Naming a generic stakeholder with no connection to the organisation.
Guardrail: Check the organisation type, objective, stakeholder, time period and whether the evidence supports the strength of the judgement.
Treating every stakeholder as an owner.
Guardrail: Check the organisation type, objective, stakeholder, time period and whether the evidence supports the strength of the judgement.
Assuming all stakeholder interests align.
Guardrail: Check the organisation type, objective, stakeholder, time period and whether the evidence supports the strength of the judgement.
Memory anchors
Owner or shareholder
Interested in control, performance, risk and financial return.
Employee
Interested in pay, security, conditions, development and fair treatment.
Customer
Interested in suitable quality, price, service and responsible behaviour.
Supplier
Interested in reliable orders, payment and a continuing relationship.
Government
Interested in legal compliance, tax, employment and economic or social outcomes.
Stakeholder conflict
A decision can benefit one group while imposing a cost or risk on another.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
Who are the owners of a company?
What is an employee's main stakeholder interest?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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