1.4 vocab

Question 1

Arbitration
(method of conflict resolution)

Answer 1

When all stakeholder groups (in conflict) agree to accept the decision/judgement of an independent arbitrator

Question 2

Competitors

Answer 2

Firm’s rivals, operate in the same industry and/or contest for the same customers

Question 3

Conciliation
(method of conflict resolution)

Answer 3

Aligns incompatible stakeholder interests by helping the different parties better understand each other’s interest

Question 4

Conflict

Answer 4

When stakeholders have different and/or incompatible interests
May lead to:
- disputes
- disagreements
- arguments
if not managed

Question 5

Directors
A.K.A executives

Answer 5

Group of senior managers who run a company on behalf of the owners

Question 6

External Stakeholders

Answer 6

Stakeholder groups that aren’t directly involved in the running of the organisation + do NOT have direct interest

P.S - Internal = opposite

Question 7

Stakeholder Mapping
(business management model)

Answer 7

Used to determine the RELATIVE interest of stakeholders + their level of power/interest in an organisation

Question 8

Stakeholder conflict

Answer 8

The inability of an organisation to meet ALL the stakeholder objectives simultaneously

Question 9

Stakeholders

Answer 9

Vested interest in the actions + outcomes of the organisation
- Directly affected by the performance of said business