Business Stakeholders: Internal and External

What is the primary reason why employees are considered internal stakeholders?

They have an impact on the company's revenues
They are more productive when protected and trained (correct)
They are responsible for making decisions
They provide product inventory on account

Why are customers considered external stakeholders?

They invest in the company
They have an impact on the company's revenues (correct)
They provide product inventory on account
They make decisions for the company

What is the expectation of creditors from a business?

To meet payment deadlines responsibly and consistently (correct)
To provide product inventory on account
To make decisions for the company
To invest in the company

Why are managers considered internal stakeholders?

They are responsible for making decisions and creating a work environment (A) Signup and view all the answers

What is the primary difference between internal and external stakeholders?

Their employment status with the company (C) Signup and view all the answers

What type of business activity involves a company selling to another company?

Business to business (B) Signup and view all the answers

What is one possible use of economic power in business according to the text?

To lower prices to constrain competitors (B) Signup and view all the answers

What type of power do firms supported by the government have?

Political power (A) Signup and view all the answers

What is required to win a legal fight against a company that is copying your product?

Strong legal power and lots of money (D) Signup and view all the answers

Why is it important to keep information private?

Because it can be dangerous if it falls into the wrong hands (A) Signup and view all the answers

What is a stakeholder map used for?

To visualize the relationship between stakeholders and identify their stance on an issue (D) Signup and view all the answers

What is an alternative solution if a company lacks the resources to take legal action against a company copying their product?

To develop and innovate the product without considering imitations (D) Signup and view all the answers

What is the formula for calculating volume market share?

Brand sales in volume / market size in volume (B) Signup and view all the answers

What does a relative market share greater than 1 indicate?

The brand is the market leader (C) Signup and view all the answers

What is the primary goal of measuring customer satisfaction?

To improve the quality of goods and services (C) Signup and view all the answers

What is an example of a company asset?

Online portal (D) Signup and view all the answers

What is the difference between capabilities and competences?

Capabilities are the capacity to do something, while competences are the degree of skill (D) Signup and view all the answers

What is the type of brand awareness where a customer recalls a brand without prompting?

Spontaneous awareness (D) Signup and view all the answers

What is the importance of coordinating an organisation's value chain with its supplier's value chain?

To prevent a supplier's poor performance from affecting the organisation's value chain (C) Signup and view all the answers

What is the purpose of conducting a SWOT analysis?

To analyse an organisation's strengths, weaknesses, opportunities, and threats (A) Signup and view all the answers

What are considered internal factors in a SWOT analysis?

Strengths and weaknesses (D) Signup and view all the answers

What is an example of a company's main skill?

Making coffee, in the case of Illy (C) Signup and view all the answers

What does proprietary technology refer to?

A company's ownership of a technology or invention (D) Signup and view all the answers

What is involved in an internal assessment of an organisation?

Evaluating an organisation's strengths and weaknesses (B) Signup and view all the answers

What is the reason behind companies acquiring other companies, such as Nestle buying Buitoni?

To gain access to existing distribution channels and market presence (A) Signup and view all the answers

What makes substitutes more competitive in a market?

Lower prices for the same performance (C) Signup and view all the answers

What is the key difference between greenfield investments and brownfield investments?

Greenfield investments involve starting from scratch, while brownfield investments involve buying an existing company (A) Signup and view all the answers

What gives suppliers and buyers more power in a market?

When there are limited suppliers and buyers (D) Signup and view all the answers

What is the benefit of acquiring an existing company in a market?

You can immediately enter the market with an established presence (A) Signup and view all the answers

What type of investment involves buying an existing company to eliminate a potential future competitor?

Defensive investment (B) Signup and view all the answers