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NCFE LEVEL 1/2
Look inside
Bullet-list summaries of the key points
at the end of each content area
1 Entrepreneurship, business organisation and stakeholders
1.4.4 Stakeholder conflict
Stakeholder conflict occurs when some of a business’s stakeholders do
not agree with the business’s decisions or proposed or actual actions that
have taken place. For example, local community groups will often oppose
the building of new houses on fields due to its impact on the environment,
but the government will argue that the UK needs more housing for the
increasing population. This can lead to protests and can create bad
feeling against the government and the housing development business.
Some stakeholders will feel that the aims and objectives of a business
operating in a particular part of the country are incompatible with the local
economy and environment. Examples of this include the controversial
Heathrow runway expansion and the new HS2 high-speed railway.
Activity
Short tasks to help develop
student understanding,
including individual,
group and research tasks
Research the latest
information on either
the expansion of
Heathrow or the HS2
railway. Produce a blog
on your findings.
Remember
n Stakeholders are any individuals who have an interest in a business.
Questions to test
knowledge and
understanding of
the content
n Internal stakeholders are those within the organisation.
n External stakeholders are those outside of the organisation.
n Different stakeholders have different interests and engage with
organisations in different ways.
n Businesses that engage with their stakeholders are likely to have
increased staff motivation and retention, an improved reputation,
new ideas and an increased share price.
n Stakeholder conflict can restrict business operations if ideas are
opposed or blocked, for example the opening or expansion of business
operations that could result in more traffic in the local area.
Test yourself
1
List two internal
and two external
stakeholders in your
school or college.
2 Define the term
‘stakeholder conflict’.
Summary activities that allow
students to apply knowledge
and skills in preparation for the
non-examined assessment
Practice questions
Select which one of the following is
an advantage of being a franchise.
[1 mark]
a There is less risk as products are well known.
b The franchise has unlimited liability.
c The franchise will use national advertising.
d The franchisee can make all the decisions.
2 Select which one of the following is
the correct definition of a business
objective.
[1 mark]
a The large goals that a business sets itself
and intends to achieve.
b A precise and measurable step towards
completing the goals set by the business.
c A formal document that states the business’s
vision for what it is striving to achieve.
d The money that a business makes
from selling its goods/services.
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3 Select which one of the following is
an external stakeholder.
a Worker
b Owner
c Employee
d Customer
NCFE Level 1/2 Technical Award in Business and Enterprise
[1 mark]
always grateful for the fresh fruit and
vegetables.
4 Ollie would describe himself as an
entrepreneur. Define this term.
[2 marks]
5 Ollie is currently a sole trader. State
two features of being a sole trader. [2 marks]
6 Ollie would like to expand his business
and is thinking about different options.
He is considering changing his type of
business ownership.
a Identify one suitable type of
business ownership.
[1 mark]
Answer the following questions using the
information below:
Ollie owns a fruit and vegetable market
stall. He has been very successful over the
past three years and has built up a large
and loyal customer base, which has
increased each year by 10 per cent. During
the pandemic, he noticed that some regular
customers were not buying from the stall.
He decided he would deliver any leftover
stock to these local customers. They were
Assignment practice
27
Practice questions to
help students prepare
for the exam
b Explain the advantages and
disadvantages of this type of
business ownership.
[6 marks]
7 Expanding Ollie’s business is a risk.
Taking this risk may or may not work.
Identify three characteristics that an
entrepreneur must have when dealing
with new business opportunities.
[3 marks]
8 Identify three different stakeholders
involved in Ollie’s business.
[3 marks]
9 What financial help could Ollie
receive in expanding his business? [6 marks]
At the end of each chapter in this book, there will
be a sample NEA for you to practise your skills.
They will be based on the following scenario:
You have had the idea of starting a sandwich
and panini delivery service for companies based
in business parks on the outskirts of your town.
You are aware that since the pandemic, when
many people worked from home, there have
been fewer people working in the business park.
You are writing a business plan for your idea.
Tasks:
Create a plan that details:
1 What structure of business you will set up and
why you have chosen this form of business.
(AO1, AO2)
Read about it
Branson, R. Screw It, Let’s Do It (Virgin, 2006)
— Practical business examples and the lessons
Richard Branson has learnt from running his
businesses.
Jones, P. Tycoon (Hodder & Stoughton, 2008)
— Entrepreneurial examples and how business
dreams can be turned into reality.
2 The aims and objectives for the business.
(AO1, AO2)
3 The various stakeholders that you will engage
with given the type of business that you will
be setting up. (AO1, AO2)
Mawson, A. The Social Entrepreneur, Making
Communities Work (Atlantic Books, 2008)
— The importance of social issues in making
organisations successful.
www.gov.uk — Practical information about how
to be a successful business person.
www.socialenterprise.org.uk — A national body
for social enterprise; provides excellent practical
examples.
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Sample pages from My Revision Notes: NCFE Level
1/2 Technical Award in Business and Enterprise,
Second Edition
References to books, websites and
other sources of useful information
for further reading and research
View pricing at hachettelearning.com/catalogues
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