Stakeholder - A person or party with an interest in the success of a business.

Key stakeholders(s): Ones with a large amount of influence on the business. A key stakeholders view will play an important part in strategic decision making.

Every stakeholder has certain things they want from a business, these can sometimes be conflicting.

Internal:

Employees :

• Good wages and conditions
• Job security
• Job satisfaction
• Promotion prospects

Owners :

• A good return on their investment
• Good Profits

External:

Suppliers:

• Regular orders
• Prompt payment

Local Community:

• Jobs
• Community involvement
• Responsible attitude to local environment

Customers:

• Good quality products
• Low prices
• Safe products
• Innovation
• Good customer service

Lenders:

• Repayment of the debt at the agreed time

Government:

• Tax being paid to them

An example of conflict of interest would be how the customer wants a low price for a product, which conflicts with trying to have the highest possible profit. A business needs to keep these interests in balance to keep all the stakeholders satisfied.

Stakeholders with the most influence in a business will have their objectives met first over the remaining stakeholders.