Syllabus: Cambridge - IGCSE Business Studies
Module: 1.5 Business Objectives and Stakeholder Objectives
Lesson: 1.5.2 The Role of Stakeholder Groups involved in Business Activity
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Introduction
This lesson aligns with section 1.5.2 of the Cambridge IGCSE Business Studies (0450) syllabus, which explores the role of stakeholder groups in business activity. It addresses the core requirement for students to understand how the interests of different stakeholders can affect business decisions and objectives. As schools move toward building commercial awareness across all subjects, this topic offers a natural entry point for developing career readiness and workplace confidence.
Stakeholder dynamics are not just a business concept — they’re a crucial part of how all organisations operate. Students are introduced to the competing needs and influences of groups such as employees, owners, customers, and the government. This supports Gatsby Benchmark 4 by linking curriculum learning with real careers and decision-making processes across sectors.
Key Concepts
According to the Cambridge IGCSE Business Studies syllabus, students must be able to:
Identify key stakeholder groups in business (e.g. owners, employees, customers, suppliers, government, the local community).
Understand each group’s objectives, such as profit for owners, job security for employees, fair pricing for customers, and tax revenue for the government.
Analyse potential conflicts between stakeholder groups, for example, between profit maximisation and fair wages.
Explain how stakeholder pressure can influence business decision-making, such as environmental concerns from local communities or pricing regulations from government bodies.
Students are expected to apply this knowledge to realistic business scenarios, demonstrating the ability to evaluate whose interests should take priority and why.
Real-World Relevance
In the real world, stakeholder tensions shape everyday business decisions. For instance:
Amazon regularly faces criticism over working conditions and warehouse practices. Employee pressure and media attention have driven changes in HR policies.
BrewDog, a high-profile UK company, faced stakeholder backlash from both former employees and customers over alleged toxic culture. The company had to issue public apologies and adjust internal strategies.
Tesco must balance pricing pressures from customers during a cost-of-living crisis while maintaining supplier relationships and paying staff competitively.
These examples bring the stakeholder model to life, showing students how multiple perspectives impact commercial decisions.
How It’s Assessed
The Cambridge IGCSE uses a range of question types to assess this topic, including:
Short-answer questions (e.g. “Identify two stakeholder groups and their objectives”).
Explain-style questions (e.g. “Explain how a business decision may affect suppliers”).
Data response and case study questions, where students must analyse a business situation and evaluate the influence of stakeholder groups.
20-mark extended writing tasks asking students to evaluate which stakeholder objectives should be prioritised.
Command words to look out for include identify, explain, analyse, and evaluate. Teachers should guide students to build structured responses that weigh up different stakeholder interests with justification.
Enterprise Skills Integration
This topic directly supports the development of:
Decision-Making & Problem-Solving: Students assess competing objectives and determine trade-offs.
Commercial Awareness: Understanding the real-world pressures businesses face from various stakeholder groups.
Communication and Justification: Making and supporting a business case for prioritising certain stakeholders.
Enterprise Skills tools like stakeholder mapping, impact grids, and case-based decision trees can be used to model realistic trade-offs, mirroring the choices managers face daily.
Careers Links
Understanding stakeholder roles and perspectives is essential for a wide range of careers, not just business:
Project Managers must balance the needs of clients, suppliers, and internal teams.
Public Sector Officers work closely with community stakeholders.
Sustainability Consultants advise firms on managing environmental and community interests.
Human Resource Professionals navigate tensions between employee wellbeing and company strategy.
This topic supports Gatsby Benchmarks 4, 5, and 6:
Benchmark 4: It links classroom learning with stakeholder roles in real careers.
Benchmark 5: Real employer case studies can enhance classroom delivery.
Benchmark 6: Use simulated boardroom debates or workplace scenarios to mirror stakeholder engagement.
Teaching Notes
Teaching Tips:
Start with a simple stakeholder scenario (e.g. opening a new shop in a residential area) to explore stakeholder perspectives.
Use role-play activities where students represent different stakeholder groups in a mock decision-making panel.
Apply stakeholder mapping exercises using real brands students recognise.
Common Pitfalls:
Students often confuse stakeholders with shareholders — reinforce that stakeholders include anyone affected by the business.
They may also assume all stakeholder needs align — encourage discussion about conflicts and compromises.
Extension Activities:
Have students analyse a current business controversy through the lens of stakeholder impact.
Introduce employer engagement using Skills Hub Futures content — such as employer-set challenges or real-world project tasks — to apply this topic in a careers context.
Useful Tools:
Skills Hub Business for curriculum-aligned stakeholder simulations
Skills Hub Futures for careers-ready stakeholder challenges
Peer-reviewed case studies to demonstrate real business dilemmas
