Stakeholders

Any individual or group that affects or is affected by a business’s actions and decisions.

Customers want low prices and high quality, while owners often want higher profit margins (which may require higher prices or lower costs).

Name the specific stakeholder group (e.g. employees, customers, government).

Internal stakeholders are inside the business and directly involved in operations (employees, managers, owners).

Employees and owners/shareholders (or managers).

Customers and government (also suppliers, community, banks, pressure groups).

It is too vague. Examiners reward specific stakeholder groups (e.g. local residents, employees, suppliers).

Regular orders, prompt payment, and long-term contracts.

Explain how the specific business decision affects that stakeholder in the scenario.

Because different groups want different outcomes (e.g. higher wages vs higher dividends, low prices vs high margins).

It improves the business’s cash flow, but it can create cash flow problems for suppliers who rely on timely payment.

Customers and suppliers (also government, community, banks, pressure groups).

Identify two stakeholders affected by this decision (2 marks).

Fair pay, job security, good working conditions, and career progression.

Jobs and positive contribution with minimal pollution/noise/traffic problems.

Name the stakeholder, state their interest, explain the impact.

Use: name the stakeholder, state their interest, then explain the impact of the decision on them.

They compare impacts on multiple stakeholders, show conflict/trade-offs, and apply to the case facts.

Avoid generic groups (e.g. “people”). Use relevant, specific stakeholders from the case.

Profit, growth, dividends, and increasing business value.

Identify the specific stakeholder groups involved.

Owners/shareholders versus employees (cost minimisation versus higher wages and better conditions).

Interests.

Keeping stakeholders informed about decisions and reasons reduces misunderstanding and builds trust.

Because they have greater power (ability to affect decisions) through finance, legal authority, collective action, or public pressure.

Explain what each stakeholder wants (their interests) in this situation.

Finding a compromise where each group gains something (e.g. smaller pay rise plus better benefits).

Expansion may increase noise, traffic, or pollution, while the community wants a clean, quiet environment.

Owners/shareholders versus employees.

They can pass laws, set regulations, increase taxes, or impose penalties that force businesses to change.

If they account for a big share of revenue, they can demand better terms or threaten to switch suppliers.

Shareholders may want higher dividends now, while managers may prefer reinvesting profits for long-term growth.

Publishing clear information on performance and impacts helps stakeholders trust decisions and reduces suspicion.

Explaining where and why the stakeholder interests conflict (who gains, who loses).

Negotiation (finding a compromise).

They represent employees collectively and can organise industrial action such as strikes.

Suppliers want prompt payment, while the business may want to delay payment to improve cash flow.

It helps managers focus on high power, high interest stakeholders who can strongly affect outcomes.

Offer retraining or redeployment to reduce employee opposition to automation (but explain cost trade-offs).

To identify stakeholders by power and interest so managers focus effort on the most influential/concerned groups.

Link each strategy to the specific conflict in the case and explain how it reduces tension.

At least two stakeholder groups, clear conflict analysis, a proposed resolution, and evaluation of whether it works.

Short-term shareholders may want quick returns, while employees and communities benefit from long-term stability and investment.

Apply the conflict and any solutions to the specific business in the scenario.

Which stakeholders need the most attention (high power and high interest).

They vote at AGMs, elect directors, and approve major decisions.

Because a decision can benefit one group while harming another (e.g. cost cuts help profits but can cause redundancies).

Customers may lose trust and switch to competitors, reducing sales and damaging loyalty.

Impact.

Buying or boycotting products to reward or punish business behaviour.

Employees may face redundancies (negative) while shareholders benefit from higher profits (positive).

Through trade unions and industrial action (e.g. strikes) or suggestion schemes.

Morale may drop, productivity can fall, and talented staff may leave due to disagreement with the business’s values.

Changing regulations or taxes that force the business to adapt.

Customers may switch to competitors (negative), while owners may gain higher revenue per unit (positive).

Regulators may investigate, impose fines, and add compliance requirements, increasing costs and limiting operations.

By purchasing (or boycotting), leaving reviews, complaining, and switching to competitors.

By setting regulations, changing tax policy, offering incentives, or imposing penalties.

It can create jobs (positive) but also increase traffic, noise, and pollution (negative).

Investors may sell shares due to reputational risk, reducing share price and firm value.

Show the loser too: explain both positive and negative impacts on different groups.

At least 2–3 stakeholder groups, each with a clear impact linked to the case.

They apply influence and impact to the case and show effects across multiple stakeholders.

Explain both positive and negative effects and link them to the case facts.

They run campaigns and use media/public opinion to pressure the business to change behaviour.