Name: Attaullah Mirlashari Candidate Number: 0140
Attaullah Mirlashari 11i
Applied Business GCSE
Unit 2 People in Business
Part 1 Stakeholders
Introduction
In this following unit I shall be investigating people in business. The business I will be looking at will be Richer Sounds. Richer Sounds is an electronic retailer who specialise in selling all kinds of electronic goods from plasmas to DVD players. Richer Sounds is a PLC but unlike other Public Limited Companies, the majority shareholder who also created the business Julian Richer decided not to put the business on the stock exchange therefore members of the public cannot buy shares in Richer Sounds.
Task 1
In this part of the unit I will be discussing the stakeholders of Richer Sounds and how they are affected by the business.
A stakeholder is a person or organisation who has an interest in a business. This means that the business has some impact on their lives.
Here is a list of the following stakeholders of Richer Sounds:
- Shareholders
- Employees
- Customers
- Suppliers
- Managers
- Government
- Financiers
- Competitors
- Local Community
- Pressure Groups
There are two types of stakeholders; internal and external. Internal stakeholders are people who are part of a business, including the owners themselves, managers and other employees. Internal stakeholders are directly affected by the activities of the business.
External stakeholders in a business include suppliers, customers, communities, pressure groups, financiers and the government. These people have an interest in the business but are not part of it.
All shareholders in a business are stakeholders. They may be internal or external stakeholders depending on whether or not they also work in the business.
- Customers – Customers are seen as the most important stakeholder groups in most businesses. This is because without the customers how will they make break even let alone making profit.
Customers will usually be interested in things such as:
- The range of goods and services offered
- The price and quality of goods or services
- The opening hours and availability of staff
- The helpfulness of staff
- The overall efficiency of staff
Customers are really important stakeholders because they could either make or break a business. After all it is the customers’ money that is making the businesses profits and paying their employees wages so for that reason businesses have to keep their customers constantly satisfied otherwise they could just not shop there anymore and the business will lose out on a lot of capital.
- Employees & Managers – Employees and managers are also very important in any business as they have the ability to influence many decisions made and also how effectively a business runs through how effectively they fulfil their job roles.
