1.5 Stakeholders – Relative Importance and Influence
What is a Stakeholder?
A stakeholder is anyone who can affect or is affected by a business’s actions, decisions, or policies. Think of a stakeholder as a *player* in a game of chess: each piece moves differently and has a different impact on the outcome.
Types of Stakeholders
- Internal: Employees, managers, owners
- External: Customers, suppliers, creditors, regulators, community, media, competitors
Relative Importance & Influence
Stakeholders differ in importance (how much they care about the business) and influence (how much they can affect decisions).
Use the Power‑Interest Grid to visualise this:
| High Power / High Interest | High Power / Low Interest |
|---|
| 👑 Key partners, major investors | 🏢 Regulators, large suppliers |
| Low Power / High Interest | Low Power / Low Interest |
|---|
| 📣 Customers, local community | 🛠️ Minor suppliers, casual observers |
Remember: High power + high interest = top priority for engagement.
Example: A Local Café
- Customers (high interest, moderate power) – their feedback shapes menu changes.
- Employees (high interest, low power) – staff morale affects service quality.
- Suppliers (moderate interest, moderate power) – ingredient prices influence costs.
- Local Council (low interest, high power) – zoning laws can restrict opening hours.
By mapping these, the café can decide where to allocate marketing budgets, training, and lobbying efforts.
Exam Tips
- Use the Power‑Interest Grid diagram in your answer to show understanding.
- Give at least two examples of stakeholders for each quadrant.
- Explain how a stakeholder’s aims (e.g., profit, safety, community benefit) can influence business decisions.
- Remember the phrase: "Stakeholders are the *players* in the business game; their moves shape the final score."