5. Stakeholders

Question 1

define a stakeholder.

Answer 1

an individual or group with in interest in the business.

Question 2

what are the three types of stakeholders? explain them with examples.

Answer 2

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.

Question 3

what is the difference between a primary and secondary stakeholder?

Answer 3

primary stakeholders have a contractual relationship (internal/connected) whereas secondary stakeholders have no contractual link (external).

Question 4

what model should businesses use when conflicted about which stakeholders to prioritise?

what are the outcomes of this model? (4)

Answer 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.

Question 5

what are the three sources of stakeholder power?

Answer 5

hierarchy, influence and control of the environment