4. Stakeholders Flashcards
Stakeholder analysis is an important tool for organisations because…
It is through the mediation of stakeholders that environmental factors are ‘felt’
‘Stakeholder’ refers to any group or individual with an — in the organisation
Interest
The organisation may be seen as a — of interacting stakeholder groups
Network
What is the FIRST assumption made in stakeholder analysis?
That stakeholders can be identified and classified
‘Through the mediation of stakeholders, external features of the environment are interpreted —’
Subjectively
What is the ‘shareholder concept’?
The view that the organisation owes a primary duty to the shareholders
What is the ‘stakeholder concept’?
The view that the organisation should give equal consideration to a wider stakeholder group
Realistically, why might an organisation see other stakeholders as important?
By catering for the needs of other stakeholders, it can more effectively satisfy the needs of shareholders
— stakeholders are the most directly connected with the organisation
Internal
What are the two principal internal stakeholders
Managers and employees
— stakeholders have regular interaction with the organisation and are readily affected by its actions
Connected
What are the four main connected stakeholders?
Customers
Suppliers
Lenders
Shareholders
— stakeholders have some interest in the organisation but are not directly connected
External
External stakeholders include…
Tax authorities
Local community
Lobby groups
— stakeholders have a very limited interest in the organisation
Peripheral
What are the five principal questions to ask in stakeholder analysis?
Who are they? What do they want? How can they influence us? How can we counter the influence? What should we do?
What is the most effective strategy for winning over stakeholders?
Include them in the decision making process
What are the common ways of including stakeholders in the decision making process?
Consumer panels
Employee representatives
Shareholder groups
What four stakeholder categories are represented by the mnemonic ProLApS?
Promoters
Latents
Apathetic
Supporters
— have high interest and high influence in an activity
Promoters
— have high interest and low influence in an activity
Supporters
— have low interest and high influence over an activity
Latents
— have low interest and low influence in an activity
Apathetics
Stakeholder — is measured by the amount of stake a stakeholder has in the organisation
Importance
Stakeholder — is the ability of the stakeholder to impact the organisation directly
Influence
Or power
