Stakeholders and objectives - Business Management IB Study Notes
Overview
Imagine you're planning a big birthday party. Who do you need to think about? Your friends (who want fun games), your parents (who are paying and want it safe), maybe your siblings (who want cake!). Everyone involved, or affected by, your party is a 'stakeholder'. In business, it's the same! Businesses have lots of people and groups who care about what they do and how they do it. This topic helps us understand who these important people are, what they want (their 'objectives'), and why their wants sometimes clash. Knowing this is super important because a business that keeps its stakeholders happy is usually a successful one. It's like being a good party planner – you need to balance everyone's wishes to make it a hit!
What Is This? (The Simple Version)
Think of a business like a giant sports team. Everyone involved, from the players on the field to the fans in the stands, the coaches, the team owners, and even the people who sell hotdogs, are all stakeholders. They all have an interest in how the team performs and what it achieves.
In Business Management, stakeholders are any individuals or groups who are affected by, or can affect, the actions, decisions, policies, practices, or goals of a business. They have a 'stake' (an interest or concern) in the business. Their objectives are simply what they want to achieve or get from the business. For example, a player's objective might be to win the championship, while a fan's objective might be to enjoy a good game.
Some stakeholders are internal (inside the business, like employees or managers) and some are external (outside the business, like customers or the government). We'll look at why their objectives can sometimes be like two different magnets trying to push each other away!
Real-World Example
Let's imagine 'Sweet Treats Bakery', a local shop that makes delicious cakes and cookies. Here's a look at some of its stakeholders and their objectives:
- Owners (Internal Stakeholder): They started the bakery. Their main objective is probably to make a good profit (the money left over after paying all the costs) so they can live comfortably and maybe open more bakeries.
- Employees (Internal Stakeholder): These are the bakers and people who serve customers. Their objectives include getting a good salary (paycheck), having safe working conditions, and maybe opportunities to learn new baking skills.
- Customers (External Stakeholder): People who buy cakes. Their objectives are to get tasty, fresh cakes at a fair price, and good service.
- Suppliers (External Stakeholder): These are the companies that sell flour, sugar, and eggs to the bakery. Their objective is to sell their ingredients to Sweet Treats Bakery regularly and get paid on time.
- Local Community (External Stakeholder): The people living near the bakery. They might want the bakery to be a nice, clean place that doesn't make too much noise or traffic. They might also like the bakery to support local events.
- Government (External Stakeholder): The local council or national government. Their objective is for the bakery to follow all laws (like hygiene rules and paying taxes) and contribute to the local economy.
How It Works (Step by Step)
Businesses need to understand and manage their stakeholders. Here's how they often do it: 1. **Identify Stakeholders:** First, figure out who all the important groups and individuals are. It's like making a guest list for your party. 2. **Understand Objectives:** Next, find out what each stakehol...
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Key Concepts
- Stakeholders: Any individual or group who is affected by, or can affect, the actions, decisions, policies, practices, or goals of a business.
- Objectives: The specific goals or targets that a business or its stakeholders want to achieve.
- Internal Stakeholders: Individuals or groups who are part of the organization itself, such as owners, managers, and employees.
- External Stakeholders: Individuals or groups outside the business who are affected by or can influence its operations, such as customers, suppliers, and the government.
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Exam Tips
- →When asked to identify stakeholders, always provide specific examples (e.g., 'employees' not just 'internal').
- →For each stakeholder, clearly state their primary objective and *briefly explain why* they have that objective.
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