Chapter 11 - Stakeholders

Question 1

The nature of stakeholders

Answer 1

The success of a retail business depends on the extent to which the business succeeds in satisfying the expectations of the stakeholders of the business.

As there are always many stakeholders and it is impossible to satisfy all stakeholders all the time, the manager of a retail business must manage the process of satisfying stakeholders expectations carefully.

Question 2

5 steps of Compiling a stakeholder profile

Answer 2

Step 1 - Define relevant stakeholders

Step 2 - Specifying the critical roles of stakeholders

Step 3 - defining the expectations of stakeholders

Step 4 - specifying the influences of stakeholders

Step 5 - Rating and prioritizing the importance of stakeholders to businessdeveloping a framework that defines how people and other resources are

Question 3

Owner stakeholders

Answer 3

People that invest money in the business

Compiling a profile of owner stakeholders

S1 - defining the owners either minority or majority individuals with some involvement or no involvement in the management of the business.

S2 - specifying the critical roles of owners

S3 - Defining expectations of owners

S4 - specifying the influence of owners on the retail business

Question 4

Categories of Customer Stakeholders

Answer 4

Loyal customer
- customers who always buy their products from the business

Impartial customer
- customers who only buy from the retail business did they can get the best deal

Hostile customers
- only buy product if they cannot get anywhere else

Potential customers
- customers who buy from other retail because they do not know of the retail business or the product they sell that they are interested in

Question 5

Government stakeholders

Answer 5

Sars

Municipalities

Saps

Ccma

Question 6

Community stakeholders

Answer 6

Religious institutions

Schools

Sport organizations

NGO’s

Question 7

Supplier stakeholders

Answer 7

Internal suppliers such as distribution centers

External suppliers such as credit basis

Suppliers of finance such as banks

Suppliers of advice such as consultants

Question 8

7 Steps for stakeholder strategic plans

A
S
O
S
L
C

Answer 8

1 Determining vision and mission

2 Doing a swot analysis

3 Formulating grand strategies

4 Formulating strategic objectives

5 implementing strategic structuring

6 undertaking strategic leadership

7 undertaking strategic control

Question 9

Types of stakeholder grand strategies

Answer 9

Generic strategies
- They define the unique relationship the business wants with the stakeholders

Developmental strategies
- Focus on issues that need to be developed

Operational strategies
- Policies and procedures on how to achieve desired relationships

Question 10

Define tactical stakeholder management

Answer 10

Tactical management refers to the compiling of an annual program to ensure maximum contribution towards the annual profit and other objectives of the business. This process involves the following sub processes:

Tactical planning and tactical control

Question 11

Tactical planning

Answer 11

Tactical planning is a part of the tactical management process and focuses on the achievement of results over a period of one year or season.

To formulate a stakeholder relationship program on an annual basis, it needs to take into account the results of the previous year and the forecast of the following year.

The purpose of a tactical plan is to ensure the best possible contributions to the profitability of the business.

Question 12

Tactical planning process

Answer 12

Conducting a tactical analysis

• Focuses mainly on the predicted risks that face the stakeholders during the next financial year.

Formulating tactical objectives

• objectives that the business is setting for next financial year

Compiling an annual budget and strategy

• to achieve annual objectives a time frame for actions as well as a budget for these need to be determined.

Question 13

Tactical Control

Answer 13

To achieve tactical control the manager must monitor the progress,the results, and the money spent on the implementation of tactical stakeholder strategies and should be monitored on a monthly basis against budget and planned annual schedule of actions.

Question 14

Operational management

Answer 14

Operational management refers to the management actions that will ensure that nothing goes wrong on an operational level, to solve the problem immediately when it occurs and to minimise the negative impact of a problem on the stakeholders.

Question 15

Operational stakeholder relationship management program

Answer 15

Ensuring the correct execution of planned actions to deal with building stakeholder relations

Anticipating possible critical incidents that impact stakeholder relations.

Compiling an operational plan to deal with such incidents.

Conducting an action that will deal with an incident to build the relations with stakeholders.

Controlling the implementation of the action to build stakeholder relations.

Question 16

Operational management process

Answer 16

Determining which stakeholders may be affected

defining the desired outcome

determining the cost of the actions

Determining the actions that need to be taken

scheduling the implementation of the actions

determining the specifications of how the action should be taken

deciding who will take the actions

delegating the activities to those who will take the actions

coaching and motivating those who will perform the activity

checking the implementation of actions against the specifications in time schedule

controlling the results against the desired outcomes and objectives

determining all deviations from planned implementation and outcomes

evaluating the deviations

recording and reporting deviations

Question 17

Criteria of successful stakeholder actions

Answer 17

The action must draw and keep the interest of the stakeholder.

The stakeholder must understand the message.

The correct volume of information must be provided.

The message must be convincing.

The action must be of the right format.

The right actions must be used for the relevant issue.

The cost of the action must be with and available budget cost.