L.O 1.1
List 3 external stakeholders
1. Consumers
2. Local Community
3. Suppliers
4. Government
5. Interest Groups
When they both mutually benefit from a relationship, it is seen as a _____________ relationship.
When both stakeholders are working towards a common goal. It is a win-win situation.
Cooperative
Name three methods of resolving stakeholder conflict.
Meet & Talk, Negotiation or Bargaining, Mediation, Conciliation, Arbitration.
What two factors are used in a stakeholder mapping grid?
Power (influence) and interest.
What is the investor's importance to a business?
They help the business grow by providing funding, and sometimes also bring useful experience, contacts, or advice that can support business success.
What sort of relationship will stakeholders have if both parties are working towards a mutually exclusive goal?
Competitive
Why is it important for businesses to include stakeholders in decision-making?
When stakeholders are involved, they feel valued and respected. This helps prevent conflict because people are more likely to support decisions they helped shape.
What is the purpose of stakeholder mapping?
To identify stakeholders and determine who should be prioritised based on their power and interest in business decisions.
What are the needs and wants of the local community of a business nearby?
The community may want local job creation, access to important goods or services, environmental responsibility, and ethical business practices from the businesses operating nearby.
Explain how an employer and employee can have both a co-operative and a competitive relationship at different times in a business.
They have a co-operative relationship when both benefit — for example, when employers invest in staff training, employees gain skills, and the business gains productivity.
However, the relationship becomes competitive when their goals clash — such as when employees want higher pay, but employers want to reduce costs.
Which method of conflict resolution involves a third party suggesting possible solutions, but not making the final decision?
Conciliation
Which group should a business keep satisfied?(Stakeholders with 1. High or low interest & 2. High or low power)
Stakeholders with high power but low interest.
Outline how the needs and wants of investors may change at different stages of business development of a business.
•At the start, they may accept a higher level of risk and lower dividends, but over time they expect a return on their money through dividends and may prefer less risk when the business is established.
Why might two producers working in the same local area move from co-operation to competition?
Use a business example to support your answer.
Producers may start by working together (e.g., promoting a local market) to attract customers, but competition can develop if they sell similar products and begin lowering prices or improving quality to win more customers.
Example: Two local coffee shops might collaborate on a “coffee trail” but later compete for regular customers.
Explain how Corporate Social Responsibility (CSR) can help avoid stakeholder conflict.
Make ethical decisions that balance profit with societal good e.g. avoid unfair price hikes that exploit loyal customers.
What is the importance of stakeholder mapping? (2 points)
1. Improves Decision-Making Quality
Mapping helps a business see all viewpoints before making a decision. It encourages balanced choices that consider the needs, concerns, and influence of different groups.
E.g. A bank may delay a branch closure after mapping shows high-impact on older customers with low digital access.
2. Supports Strategic Planning
Stakeholder mapping helps businesses plan long-term actions by understanding who to engage and when. This helps reduce surprises and keeps key relationships strong.
E.g. During expansion, a company might map which stakeholders to involve early—such as local councils or investors—to smooth the path.