Chapter 2: Strategic Management of Stakeholder Relationship

Question 1

is defined as a plan of action taken to achieve objectives.

Answer 1

Strategy

Question 2

process of the stralegy involves three steps:

Answer 2

• Formulation
• Implementation
• Evaluation

Question 3

is a process of creating a competitive advantage over its competitors and sustaining this advantage in the long term.

Answer 3

Strategic Management

Question 4

This is initially performed by creating and /or clarifying your business vision/mission and identifying goals/objectives

Answer 4

Establish goals

Question 5

what the company envisions itself to be in the future or to become

Answer 5

Vision

Question 6

describes what the company is all about, who they are, what and
how they do things, and for whom

Answer 6

Mission

Question 7

desired outcomes of planning, broader than objectives

Answer 7

Goals

Question 8

aimed targets that are needed to achieve goals

Answer 8

Objectives

Question 9

Perform through analysis and assessment of the internal and external environment of the company.

Answer 9

Scan environment

Question 10

looks at the external opportunities and threats, given the dynamics of a particular industry

Answer 10

External

Question 11

develops top-level strategies that can be trickled down to the rest of
the organization

Answer 11

Formulation

Question 12

executes developed plans by providing detailed objectives and
action plans

Answer 12

Implementation

Question 13

measures and assesses results, and recommends changes for improvement if necessary

Answer 13

Evaluation

Question 14

is a member of “groups without whose support the organization would cease to exist”

Answer 14

Stakeholder

Question 15

is a person or group that has an interest in a company and can either affect or be affected by the business.

Answer 15

Stakeholder

Question 16

defines a stakeholder as “any group or individual affect or the achievement of the organization’s objectives.”

Answer 16

Edward Freeman - stakeholder approach 1984

Question 17

It is a theory of organizational management and business ethics that addresses morals and values in managing an organization.

Answer 17

Stakeholder Theory

Question 18

“Principle of Who or What Really Counts”

Answer 18

Stakeholder Theory

Question 19

is usually accountable to a broad range of stakeholders, including shareholders, who are an integral part of an organization’s strategy execution.

Answer 19

Organization

Question 20

are often the party with the most direct and obvious interest at stake in business decisions, they are one of various subsets of stakeholders,
as customers and employees also have stakes in the outcome

Answer 20

Shareholders

Question 21

The holders of each separate kind of interest in the entity’s affairs are called a

Answer 21

Constituency

Question 22

Stakeholders can be two types

Answer 22

1. Internal Stakeholders
2. External Stakeholders

Question 23

These are groups or individuals who are directly engaged in economic transactions within the business, such as employees, owners, investors, suppliers, creditors, etc.

Answer 23

Internal Stakeholders

Question 24

These are groups or individuals who need not necessarily be engaged in transaction with the business but are affected in some way from the decisions of the business, such as customers, community, trade unions, and the government.

Answer 24

Secondary or External Stakeholders

Question 25

Some Effective techniques to identify key stakeholders:

Answer 25

1) Brainstorming 2) Determining power and influence over decisions 3) Determining influence on mission, vision, and strategy formulation 4) Checklist 5) Involve the already identified stakeholders

Question 26

This is done by including all the people already involved and aware of the company and its objectives and encouraging them to come out with their ideas.

Answer 26

Brainstorming

Question 27

Identify the individuals or groups that exercise power and influence over the decisions the firm makes.

Answer 27

Determining power and influence over decisions

Question 28

Analyze the importance and roles of the individuals or groups who should be consulted as strategy is developed or who will play some part in its eventual implementation.

Answer 28

Determining influences on mission, vision and strategy formulation

Question 29

Once the stakeholders are identified, it is important to manage their interests and keep them involved and supportive.

Answer 29

Involve the already identified stakeholders

Question 30

This is a daunting task to be performed tactfully by managers so that the organization’s higher objectives are not subordinated by individual interests.

Answer 30

Involve the already identified stakeholders

Question 31

Starts within an organization when it embeds and aligns its CSR initiatives as part of the company's overall strategy

Answer 31

Strategic CSR

Question 32

Tactics to maintain positive stakeholder relationships

Answer 32

1. Group your stakeholders 2.