Question

The Big Pit Mining business (BPM) owns and operates coal and gold mines in several different countries. It employs thousands of workers. Most of them work in very dangerous conditions for low pay. Rubbish from the mines is often dumped in local rivers. 'Making higher profits and raising returns to our shareholders are our most important objectives', said the Managing Director of BPM to his other senior managers recently. 'Shareholders are our most important stakeholder group', he added. 1. What is meant by 'stakeholders'? [2) 2. Identify two objectives that the managers might set for BPM, apart from profits and returns to shareholders. [2) 3. Identify and explain two possible reasons why BPM has profit as an objective. [4) 4. Identify and explain how a decision to open a new BPM mine might affect two stakeholder groups. [6) 5. Do you agree with the Managing Director when he said that shareholders are the most important stakeholder group? Justify your answer. [6)

Answer 1

Answer:

location bej do kgf chapter 3 vahin shoot krenge

Answer 2

Answer:

a) A stakeholder is an individual or an organization who has direct interest in the activity of a company or project.  

 

b)  

Growth, market share  

 

c)  

Profit can be invested in further expansion/developing the business  

Profit can also ensure the survival of the business.  

 

d)  

Employees will have higher job security as the business grows  

The managers will have more responsibilities, they may become demotivated.  

 

e) No, I don’t think so because the business is controlled by the directors, the shareholders only own the business. All the work is done by the director.