Key Idea: At HL, Topic 1.4 is about stakeholder analysis, stakeholder conflict and stakeholder influence. Students are expected to identify the most relevant stakeholders, explain what they want, analyse where conflicts come from and judge which stakeholders have the greatest power over the business decision.
Core structure (memorise)
- Stakeholder — anyone who affects or is affected by the business
- Internal stakeholders — employees, managers, owners/shareholders
- External stakeholders — customers, suppliers, government, communities, pressure groups, banks
- Different stakeholders have different interests
- Different interests often lead to conflict
🏢 Internal stakeholders: **Employees —** pay, job security, conditions, progression. **Managers —** control, success, resources. **Owners/shareholders —** profit, growth, return on investment.
🌍 External stakeholders: **Customers —** value, quality, service. **Suppliers —** reliable orders and prompt payment. **Government / community / pressure groups —** legal compliance, jobs, ethics, lower negative impact.
⚡ Common stakeholder conflicts: Owners vs employees. Business vs community. Customers vs shareholders. Short-term profit vs long-term ethical goals.
🛠️ Ways to reduce conflict: Communication. Negotiation. Transparency. Participation in decisions. CSR and compromise.
What HL students should show
- Not all stakeholders have equal power
- Stakeholder influence depends on context
- Some stakeholders influence decisions directly, others indirectly
- The same decision can create winners and losers
- Top-band answers explain both interests and power
HL examiners reward answers that move beyond naming stakeholders. The best responses explain what the stakeholder wants, how the decision affects them, and how much influence they actually have.
In longer responses, structure your answer as: stakeholder 1 interest → stakeholder 2 interest → point of conflict → likely business impact → realistic resolution.
Important: Common HL trap: writing a long list of stakeholders without explaining why one group matters more than another in the specific case.
- Identify the most relevant stakeholders
- Explain what each group wants
- Show how the decision affects them
- Explain where conflict comes from
- Judge which stakeholder has the most influence
- Suggest a realistic way to reduce conflict if needed