Preview
⚠️ Warning: Common Misconception “Shareholders are the only stakeholders that matter.” Not true in IB Business Management. Stakeholders include any group affected by, or able to affect, the business. Ignoring non-shareholder stakeholders can increase risk (industrial action, reputational damage, regulation) and reduce long-term profitability.
- Short run: shareholder returns may dominate decisions.
- Long run: value often depends on employees, customers, suppliers, communities, and regulators.
💡 Analogy: A Stadium Match
- Business = the team trying to win (meet objectives).
- Stakeholders = players, fans, sponsors, referees, and the local community —each has different expectations and influence.
- If the team only pleases the owners but ignores fans/referees/community, the “season” becomes unstable (boycotts, penalties, loss of licence).
Stakeholders: Core Idea
📘 Definition: Stakeholders Stakeholders are individuals or groups that have an interest in and/or are affected by the activities and decisions of an organization.
Stakeholder analysis is central to IB Business Management because most strategic decisions create