M1S2 Strategic Management of Stakeholder Relationship🤝 Flashcards
defined as a plan of action taken to achieve.
Strategy
Acording to David, 2017 strategic management involves three steps:
formulation, implementation and evaluation
A process of creating a competitive advantage over its competitors and sustaining this advantage in the long term.
Strategic Management
____________________ creating/clarifying vision-mission and identifying goals-objectives.
Establish Goals
what the company envisions itself to be in the future or to become
Vision
describes what the company is all about, who they are, what and how they do things, and for whom
Mission
desired outcomes of planning, broader that objectives
Goals
aimed targets that are needed to achieve goals
Objectives
____________________ analysis and assessment of the internal and external environment of the company.
Scan the environment
external opportunities and threats, given the dynamics of a particular industry.
External Environment
company’s strengths and weaknesses by assessing its resources.
Internal Environment
Develop top-level strategies that can be cascaded down to the rest of the organization.
Formulation
Execute developed plans by providing detailed objectives and action plans.
Implementation
Measure and assess results, and recommend changes for improvement if necessary.
Evaluation
Individuals or groups affected by a company’s activities.
Stakeholders
What are The Five Key Stakeholders?
SSSCE
Shareholders
Suppliers
Society
Customers
Employees
Investors, owners, partners or anyone who has a financial stake in the company
Shareholders
This theory states that companies are responsible for generating reasonable profits for their shareholders but should also be responsible for their stakeholders’ well-being.
Stakeholder Theory
This theory states that a company’s primary responsibility is to maximize returns for its shareholders.
shareholder theory
Starts within a company when it includes CSR initiatives as part of its overall strategy. This means considering the impact on stakeholders in the company’s objectives, strategies, and core values.
Strategic CSR
A cornerstone of effective organizations. Many studies confirm its role in organizational outcomes, including CSR.
Leadership
Companies encourage employees to join programs voluntarily, sometimes offering incentives for participation.
Employee Engagement
CSR needs cooperation from various institutions to work effectively.
Collaboration
Informing stakeholders about success stories increases public trust and legitimacy.
Communication
Encourage success stories to be shared.
Communication
is crucial for managing stakeholder relationships.
Communication
Express the success of a company’s CSR initiatives.
Communication
Sharing success stories strengthens buy-in and encourages better performance.
Communication
The main aim of business is to create lasting value for stakeholders, especially in today’s uncertain world.
Value Creation
Businesses are evolving beyond just creating wealth; they’re influencing our values and guiding public policy.
Value Creation
Making profits through commerce is not wrong; it’s essential for human progress and development.
Value Creation
