Internal & External Stakeholders (DP IB Business Management)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
An Introduction to Stakeholders
Stakeholders are individuals or groups that affect or are affected by the actions of a business
A business needs to take into account the needs and interests of its stakeholders in order to operate successfully and ensure long term success
Diagram: business stakeholders
Internal Stakeholders
Internal stakeholders are individuals or groups inside the business
Employees
Managers and Directors
Business owners
Objectives of Internal Stakeholders
Stakeholder | Objective | Example |
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Owners |
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Employees |
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Management |
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External Stakeholders
External stakeholders are individuals or groups outside of a business
Customers
Shareholders
Creditors
Suppliers
The local community
Local and national government
Pressure groups
Objectives of External Stakeholders
Stakeholder | Objective | Example |
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Customers |
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Shareholders |
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Suppliers & creditors |
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The local community |
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Local and national government |
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Pressure groups |
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Examiner Tips and Tricks
Some stakeholders can be both internal and external
Shareholders are usually classified as external stakeholders but employees and business managers may own shares and therefore have an internal stake in business success too
Similarly, the local community is usually considered to be an external stakeholder but it is likely to contain workers for a business
The fact that stakeholders may wear more than one 'hat' can make meeting their varied objectives even more of a challenge and businesses will need to take care to understand concerns effectively
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