4. Stakeholders

Question 0

Stakeholder analysis is an important tool for organisations because…

Answer 0

It is through the mediation of stakeholders that environmental factors are ‘felt’

Question 1

‘Stakeholder’ refers to any group or individual with an — in the organisation

Answer 1

Interest

Question 2

The organisation may be seen as a — of interacting stakeholder groups

Answer 2

Network

Question 3

What is the FIRST assumption made in stakeholder analysis?

Answer 3

That stakeholders can be identified and classified

Question 4

‘Through the mediation of stakeholders, external features of the environment are interpreted —’

Answer 4

Subjectively

Question 5

What is the ‘shareholder concept’?

Answer 5

The view that the organisation owes a primary duty to the shareholders

Question 6

What is the ‘stakeholder concept’?

Answer 6

The view that the organisation should give equal consideration to a wider stakeholder group

Question 7

Realistically, why might an organisation see other stakeholders as important?

Answer 7

By catering for the needs of other stakeholders, it can more effectively satisfy the needs of shareholders

Question 8

— stakeholders are the most directly connected with the organisation

Answer 8

Internal

Question 9

What are the two principal internal stakeholders

Answer 9

Managers and employees

Question 10

— stakeholders have regular interaction with the organisation and are readily affected by its actions

Answer 10

Connected

Question 11

What are the four main connected stakeholders?

Answer 11

Customers
Suppliers
Lenders
Shareholders

Question 12

— stakeholders have some interest in the organisation but are not directly connected

Answer 12

External

Question 13

External stakeholders include…

Answer 13

Tax authorities
Local community
Lobby groups

Question 14

— stakeholders have a very limited interest in the organisation

Answer 14

Peripheral

Question 15

What are the five principal questions to ask in stakeholder analysis?

Answer 15

Who are they?
What do they want?
How can they influence us?
How can we counter the influence?
What should we do?

Question 16

What is the most effective strategy for winning over stakeholders?

Answer 16

Include them in the decision making process

Question 17

What are the common ways of including stakeholders in the decision making process?

Answer 17

Consumer panels
Employee representatives
Shareholder groups

Question 18

What four stakeholder categories are represented by the mnemonic ProLApS?

Answer 18

Promoters
Latents
Apathetic
Supporters

Question 19

— have high interest and high influence in an activity

Answer 19

Promoters

Question 20

— have high interest and low influence in an activity

Answer 20

Supporters

Question 21

— have low interest and high influence over an activity

Answer 21

Latents

Question 22

— have low interest and low influence in an activity

Answer 22

Apathetics

Question 23

Stakeholder — is measured by the amount of stake a stakeholder has in the organisation

Answer 23

Importance

Question 24

Stakeholder — is the ability of the stakeholder to impact the organisation directly

Answer 24

Influence

Or power