Unit 5: Understanding Stakeholder Expectations
Unit code: H/503/8243
QCF level 4: BTEC Professional
Credit value: 6
Guided learning hours: 26
Unit aim
The aim of the unit is to give learners an understanding of business stakeholder expectations and the methods used to develop and improve business offerings to stakeholders.
Unit introduction
This unit will help learners understand that stakeholders are individuals or organisations that shape the operation of a business and/or are affected by the actions of the business. For example, if a retail chain decides to open a new store in a town centre location then the business itself, local government, construction companies, financiers, transport operators, customers and environmental groups are some of the stakeholders who have an interest in the development.
Primary stakeholders are those who are directly involved with the economic transactions of the business such as suppliers, employees and customers. Secondary stakeholders are not directly involved with the economic transactions of the business but have an indirect link to the business and its decisions. These stakeholders would include the general public, community groups and the news media.
Learners will understand that the interests of stakeholders may overlap. The retail store’s shareholders want to see growth and trade unions support the creation of new employment opportunities. However, the interests of stakeholders may also conflict. A new store may cause traffic congestion and retailers in other locations will see trade drawn away by any new retail development. Businesses will want to manage and reconcile the interests and expectations of different stakeholders. For example, a developer may be given permission to build new homes on condition of also building a new school and a leisure complex. Improving offerings to stakeholders and satisfying their varying interests as far as possible will ultimately support the achievement of business objectives.
Learning outcomes and assessment criteria
In order to pass this unit, the evidence that the learner presents for assessment needs to demonstrate that they can meet all the learning outcomes for the unit. The assessment criteria determine the standard required to achieve the unit.
On completion of this unit a learner should:
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Learning outcomes
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Assessment criteria
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1 Understand organisational stakeholders
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·discuss the differences and similarities between organisational customers and organisational stakeholders
·describe the features that differentiate primary and secondary organisational stakeholders
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2 Understand primary and secondary stakeholder expectations
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·compare the differences and similarities between expectations of primary and secondary organisational stakeholders
·evaluate methods of measuring achievement of primary and secondary organisational stakeholder expectations
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3 Understand methods to develop and improve offerings to organisational stakeholders
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·analyse current offerings to organisational stakeholders
·propose an improved offering to organisational stakeholders
· evaluate the impact of improved offerings to organisational stakeholders
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Programme of suggested assignments
The table below shows a programme of suggested assignments that cover the criteria in the assessment grid. This is for guidance only and it is recommended that centres either write their own assignments or adapt Excel assignments to meet local needs and resources.
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Criteria covered
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Assignment title
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Scenario
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Assessment method
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1.1, 1.2
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Stakeholders
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You have been asked to contribute to the Business Journal a series of three articles that provide a
stakeholder analysis of businesses
You should select suitable businesses to investigate and report on:
the differences and similarities between
organisational customers and stakeholders
the differences and similarities between primary and secondary organisational stakeholders
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An article describing the
different business stakeholders
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Criteria covered
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Assignment title
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Scenario
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Assessment method
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2.1, 2.2
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Stakeholder Expectations
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You have been asked to contribute to the Business Journal a series
of three articles that provide a
stakeholder analysis of businesses. You should select suitable businesses to investigate and report on primary and secondary stakeholder expectations
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An article describing primary and secondary stakeholder expectations
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3 .1, 3.2, 3.3
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Enhancing Stakeholder Engagement
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You have been asked to contribute to the Business Journal a series of three articles that provide a
stakeholder analysis of businesses. You should discuss the methods used to develop and improve offerings to
organisational stakeholders
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An article describing methods used to develop and improve offerings to organisational stakeholders
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