Name stakeholders that are important to a business - Business Owner/ Entrepreneur, Managers, Employees, Investors, Consumers, Local Community, Suppliers, Government, Interest Groups, Business Owner/ Entrepreneur (Stakeholders & their importance to a business) - Set up business, take personal/financial risk, hope to earn a profit. Without them an idea wouldn’t become reality, no-one to raise investment, Managers (Stakeholders & their importance to a business) - Organise the resources to achieve set objectives for the business owner. They control day-to-day operations and long term planning for the owner, Employees (Stakeholders & their importance to a business) - Carry out the manager’s orders, contribute ideas and use their skills. Provide the time, skills, experience and qualifications to meet objectives, Investors (Stakeholders & their importance to a business) - Investors provide financial support in exchange for ownership (equity), help business expand and fund innovation, offer experience/networks., Consumers (Stakeholders & their importance to a business) - Purchase goods or services, provide feedback, act as advocates for business, drive revenue, provide repeat purchases, feedback can improve products., Local Community (Stakeholders & their importance to a business) - The area and people that surrounds and interacts with the business. Fosters goodwill and provides potential customers and employees for a business, Suppliers (Stakeholders & their importance to a business) - Provide raw materials, products, or services needed by the business. Can offer credit terms. Ensure consistent production and service delivery of quality stock on time. , Government (Stakeholders & their importance to a business) - Regulates and oversees business activities, offers grants and incentives. Can provide mentoring training and funding with grants through state agencies, Interest Groups (Stakeholders & their importance to a business) - Represent common viewpoint, objectives and goals of a group of stakeholders. Help in negotiating or informing business what members want, avoids conflict, Types of Relationships Between Stakeholders - Co-Operative Relationship & Competitive Relationship, Co-Operative Relationship (Types of Relationships Between Stakeholders) - Win-win – mutual benefit for both parties for a common goal, Co-operative – Investor & Manager - The investor provides funding to help the business grow and earns a bonus; the manager uses it effectively to deliver results, benefiting both., Co-operative – Employer & Employee - The employer invests in training; employees become more skilled, and employers gain more productive staff., Co-operative – Supplier & Manager - They agree on bulk discounts; the supplier increases sales, and the business reduces its cost per unit., Co-operative – Producer & Producer - Two producers share resources (like marketing costs), so both attract more customers and benefit equally., Competitive Relationship (Types of Relationships Between Stakeholders) - Win-lose – one party benefits at the expense of another, conflict, Competitive – Employer & Employee - The employer wants to reduce pay to cut costs, while the employee wants a pay rise to boost income -> one side's gain is the other’s loss., Competitive – Investor & Manager - The investor wants a bigger dividend, but the manager wants to reinvest profits -> higher returns for one means fewer funds for the other., Competitive – Supplier & Manager - The supplier wants quicker payment, but the manager wants more credit -> whoever gets their way does so at the other’s expense., Competitive – Producer & Producer - One producer may improve quality or price to win customers, which could reduce sales for the other -> it’s a win–lose situation., Avoiding conflict (strategies) - Regular & honest communication, Good Corporate Social Responsibility (CSR), Stakeholder Engagement Plans, Regular & honest communication (Avoiding conflict) - Open lines of dialogue to understand stakeholder concerns and expectations, Good Corporate Social Responsibility (CSR) (Avoiding conflict) - Adopt good ethical practices that balance profitability with societal benefits., Stakeholder Engagement Plans (Avoiding conflict) - Develop plans to actively involve stakeholders in the decision-making process., Resolving Conflict - Meet and talk, Negotiation, Mediation, Conciliation, Arbitration, 1. Meet and talk (Resolving Conflict) - Discuss, clarify, communicate issues around dispute, 2. Negotiation (Resolving Conflict) - Bargaining, counter-offers, compromise to reach a solution, 3. Mediation (Resolving Conflict) - Unbiased 3rd party encourages parties to talk (facilitator) in a meeting, doesn’t offer any solutions/recommendations, 4. Conciliation (Resolving Conflict) - Unbiased 3rd party trying to get parties to reach an agreement themselves, doesn’t offer recommendation, may suggest solutions to help parties resolve themselves., 5. Arbitration (Resolving Conflict) - Listens to both parties, then issues a recommendation (solution) which can be binding or non-binding if agreed beforehand, Stakeholder Mapping - Identifies the main stakeholders and their power and influence on a business, to help prioritise actions, Stakeholder Mapping - Importance  - Importance: Helps allocate resources – the most important stakeholders for the business can be targeted to help satisfy their needs. Proactive conflict resolution – Can highlight stakeholders that require information, can be engaged/involved to prevent conflict occurring.,

Chapter 1 Key Takeaways

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