5. Stakeholders Flashcards
define a stakeholder.
an individual or group with in interest in the business.
what are the three types of stakeholders? explain them with examples.
internal: within the organisation.
i. e. employees and managers
external: no direct link but influenced by its activities.
i. e. community, pressure groups, government
connected: invest in or have dealings with the firm
i. e. shareholders, customers.
what is the difference between a primary and secondary stakeholder?
primary stakeholders have a contractual relationship (internal/connected) whereas secondary stakeholders have no contractual link (external).
what model should businesses use when conflicted about which stakeholders to prioritise?
what are the outcomes of this model? (4)
Mendelows power-interest matrix.
low power, low interest: minimal effort
low power, high interest: keep informed
high power, low interest: keep satisfied
high power, high interest: key players.
what are the three sources of stakeholder power?
hierarchy, influence and control of the environment