The document discusses the key stakeholders that influence businesses and the external factors that impact businesses. The main stakeholders mentioned are owners/shareholders, customers, managers, government, employees, and community. It also outlines some of the main external factors, or PESTEC analysis, that affect businesses, including political, economic, social, technological, environmental, and competitive factors. It provides examples of each type of factor and how they can influence business operations and success.
3. Stakeholders
Stakeholders are people with a key
interest in a business
The main ones in business are:
•Owners/Shareholders
•Customers
•Managers
•Government
•Employees
•Community
4.
5. Owners and Shareholders
•
The number of owners and the roles they
carry out differ according to the size of the
firm
•
In small businesses there may be only one
owner (sole trader) or perhaps a small
number of partners (partnership)
•
In large firms there are often thousands of
shareholders, who each own a small part of
the business
7. Employees
A business needs staff or employees
to carry out its activities
Employees agree to work a certain
number of hours in return for a wage
or salary
Pay levels vary with skills,
qualifications, age, location, types of
work and industry and other factors
8. Customers
•
•
•
Customers buy the goods or services
produced by firms
They may be individuals or other
businesses
Firms must understand and meet the
needs of their customers, otherwise
they will fail to make a profit or,
indeed, survive
9. Suppliers
Firms get the resources they need to
produce goods and services from
suppliers
Businesses should have effective
relationships with their suppliers in
order to get quality resources at
reasonable prices
This is a two-way process, as
suppliers depend on the firms they
supply
10. Community
Firms and the communities they exist
in are also in a two-way relationship
The local community may often
provide many of the firm’s staff and
customers
The business often supplies goods
and services vital to the local area
But at times the community can feel
aggrieved by some aspects of what a
firm does
11. Government
• Economic policies affect firms’ costs
(through taxation and interest rates)
• Legislation regulates what business can
do in areas such as the environment
and occupational safety and health
• Successful firms are good for
governments as they create wealth and
employment
12. TASK
Question Bank
1-10
Debate
The school is to be knocked down and a new
hospital is to be built here. Pupils will relocate to
Blantyre.
You will be assigned different Stakeholder roles to
debate this for/against whether it is good for the
town.
25. TASK
Question Bank
44-54
Go Further
Who are the G8?
What is the Earth Summit?
What is the Kyoto Agreement?
Go Further
What is a Price War?
What is a Loss Leader?
What are the features of the Copyright, Designs & Patents
Act
26. ICT Presentation
Prepare a revision presentation on
External Environmental Factors (PESTEC)
Include a Title Slide
Political Factors
Economic Factors
Social Factors
Technological Factors
Environmental Factors
Competitive Factors