What is Stakeholder?

Summary

In this informative video, the concept of stakeholders in business is explored, highlighting their critical roles and classifications into internal and external categories. The speaker emphasizes the importance of understanding stakeholder expectations, using examples like customers, suppliers, and financial institutions. By examining their influence on organizational performance and decision-making, the video underscores how businesses must engage with these groups to ensure success and sustainability. The discussion aims to provide viewers with a comprehensive understanding of stakeholders and their significance in the commercial landscape.

Takeaways

• 😀 Stakeholders are individuals or groups with an interest in a business's success and operations.
• 📊 There are two main types of stakeholders: internal (employees, managers) and external (customers, suppliers, government).
• 💼 Internal stakeholders play a crucial role in the functioning and performance of the organization.
• 🛒 Customers are vital stakeholders whose purchasing behavior directly affects the business's revenue.
• 🔗 Suppliers provide essential raw materials and resources needed for production, impacting cost and quality.
• 🏛️ Governments regulate businesses and expect them to contribute to the economy through taxes and compliance.
• 📈 Understanding stakeholder expectations is essential for businesses to thrive and succeed in a competitive market.
• 🧑‍🤝‍🧑 Community involvement is important as local stakeholders can influence business operations and reputation.
• 💵 Financial institutions provide necessary funding, making them key stakeholders in a business's growth.
• 🤝 Successful businesses prioritize relationships with their stakeholders to ensure mutual benefit and sustainability.

Q & A

What are stakeholders in a business context?

Stakeholders are individuals, groups, or institutions that have an interest in the functioning and performance of an organization. They can influence or be affected by the business's actions.

What are the types of stakeholders mentioned in the transcript?

The transcript discusses internal stakeholders, such as employees, and external stakeholders, such as customers, suppliers, and the community.

Why are customers considered important stakeholders?

Customers are vital because they invest money in purchasing products and services. Their satisfaction and expectations influence the success of the business.

How do suppliers fit into the stakeholder framework?

Suppliers provide the raw materials needed for production and expect timely payments. They are crucial for maintaining the supply chain and overall business operations.

What role do financial institutions play as stakeholders?

Financial institutions, like banks, provide financial resources, loans, and credit to businesses, affecting their ability to operate and grow.

How does the government act as a stakeholder?

The government regulates businesses through laws and taxes, and it can support economic activity in the community by providing public services and infrastructure.

What impact do internal stakeholders have on a business?

Internal stakeholders, such as employees, contribute to the operational activities of the business. Their performance, job security, and satisfaction directly affect organizational success.

What is the significance of understanding stakeholder expectations?

Understanding stakeholder expectations helps businesses align their strategies to meet the needs of different groups, ensuring long-term success and sustainability.

What are some challenges businesses face in managing stakeholders?

Businesses may face challenges in balancing the conflicting interests of various stakeholders, such as cost management versus customer satisfaction and regulatory compliance.

What examples were provided for external stakeholders?

Examples of external stakeholders mentioned include customers, suppliers, and the local community, all of whom have specific interests and expectations from the business.