Who has an interest in a business, and how do their interests conflict?
Stakeholders: internal and external stakeholders, the different interests and objectives of owners, employees, customers, suppliers, the local community and the government, how stakeholder interests can conflict, and the influence stakeholders have on a business.
A focused answer to the WJEC GCSE Business content on stakeholders, covering internal and external stakeholders, the objectives of owners, employees, customers, suppliers, the community and government, how their interests conflict, and the influence they have.
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What this dot point is asking
WJEC wants you to understand stakeholders: the groups with an interest in a business. You need the split between internal stakeholders (inside the business) and external stakeholders (outside it), the different objectives of each group (owners, employees, customers, suppliers, the local community and the government), how their interests can conflict, and the influence they have over what the business does. The most-asked skill is explaining a conflict between two stakeholders.
What a stakeholder is
Stakeholders are not the same as shareholders: shareholders own part of a company, but stakeholders are the much wider set of groups affected by the business.
Internal and external stakeholders
How stakeholder interests conflict
This is the heart of the topic. Because each group wants something different, satisfying one can upset another.
A business cannot please everyone at once, so it must balance these interests, usually giving most weight to the stakeholders with the greatest influence.
The influence stakeholders have
The more power a stakeholder has, the more notice the business takes of them.
Why this matters
Stakeholders run through the whole course. Their interests drive aims and objectives (profit for owners, satisfaction for customers, social aims for the community), they shape HR decisions (pay and conditions for employees), and they explain why ethics and the environment matter (the community and government as stakeholders). When a question gives a decision such as cutting costs or expanding, naming who gains, who loses and who has the influence is exactly how to earn the analysis marks.
Try this
Q1. State whether each is an internal or external stakeholder: an employee, a customer, the government. [3 marks]
- Cue. Employee: internal. Customer: external. Government: external.
Q2. Explain one way the interests of owners and employees can conflict. [2 marks]
- Cue. Owners want low costs to maximise profit, while employees want higher pay, so a wage rise that pleases staff reduces the owner's profit.
Exam-style practice questions
Practice questions written in the style of WJEC exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
WJEC (Unit 1)2 marksIdentify two stakeholders of a supermarket and state what each wants from it.Show worked answer →
A 2-mark AO1 and AO2 question: two stakeholders, each with their interest.
Stakeholder one, customers: they want good-quality products at low prices and a pleasant, convenient shopping experience.
Stakeholder two, employees: they want secure jobs, fair pay and good working conditions.
Other valid answers include owners/shareholders (profit and a return), suppliers (regular orders and prompt payment), the local community (jobs and no nuisance) and the government (taxes and employment laws followed). Markers reward each stakeholder identified with a correct interest.
WJEC (Unit 1)6 marksAnalyse how the interests of different stakeholders in a business can conflict.Show worked answer →
A 6-mark AO1 and AO3 analyse question. Reward developed conflicts.
Conflict one, owners versus employees: owners want to keep costs low to maximise profit, while employees want higher wages and better conditions, so a pay rise that pleases workers reduces the owner's profit.
Conflict two, owners versus the local community: owners may want to expand or run machinery longer to raise output, but the community wants less noise, traffic and pollution, so growth can upset local residents.
Chain and judgement: because stakeholders want different things, a business cannot satisfy everyone at once and has to balance their interests, often prioritising those with the most influence (such as customers and owners). Markers reward developed conflicts plus a comment on how the business resolves them.
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Sources & how we know this
- WJEC GCSE Business specification (Wales) — WJEC (2025)
- WJEC GCSE Business (Wales) specification (3510) — WJEC (2017)