1.3.

3 Influences in the
Business Environment
(Stakeholders)
Syllabus Points
influences in the business environment

● external influences – economic, financial, geographic,

social, legal, political, institutional, technological,
competitive situation, markets
● internal influences – products, location, resources,
management and business culture
● stakeholders
Stakeholders (7.5 Minutes)
You will need to watch the
video to further develop your
understanding of stakeholders
in business. By adding
important information to your
personal study notes you will
continue to refine your
knowledge and understanding.
Stakeholders (9 mins)
Stakeholders
Society/
Stakeholders are defined as general
public
the people and groups that
interact in some way with Managers Employees
the business and have a
vested interest in its
Stakeholders in business
activities.

In this sense you are a Environment Shareholders

stakeholder of Penrith
Selective High School.
Customers
Stakeholder Interest

They are partial owners. They have voting rights and therefore have a direct
Shareholders influence. Major shareholders can influence major decisions. Shareholders
want the organisation to be profitable as they can receive dividends.

Management has the responsibility of running a successful business. They

Managers introduce policies and procedures in order to manage complex legal and social
issues.

They influence the quality level of the product as it depends on their level
Employees of skill and commitment to the process. If organisations provide to their
needs, employees will be more inclined to put effort into tasks.

Consumers are better educated and informed and are a powerful stakeholder.
Customers They are prepared to seek compensation if necessary. Consumer groups also
mount campaigns to raise awareness about unethical businesses.

Some issues that affect society include waste disposal, carbon emissions,
Society employment. Businesses will participate in a number of community projects.

There is growing pressure for businesses to act in an environmentally

Environment friendly way. In recent years, businesses are incorporating more
environmental practices in order to respond to changing social expectations.