Stake holder mapping Flashcards
How to do stakeholder mapping
Mandelow’s power grid categorises stakeholders by comparing their interest in an organisation to their power over it.
How is the level of power determined
Level of power determined by the extent to which stakeholders can influence decisions.
How is the level of interest determined
Level of interest is determined by the degree to which that stakeholder will be influenced by decisions.
What does the chart look like?
https://docs.google.com/document/d/1jU0xUe4VpnVa__EBIMtXz32VExoQqDfDlIXTf5zsKYs/edit
An example of how the grid is used
The example for this chart is a car dealership who is struggling to sell their Porsche 911’s. They have the best price on the market, the best advertising, but the economy is unstable and not many people are willing to tie themselves to a liability like a new car. The dealership has decided to sell off all of their 911’s to a competitor in italy for 20% (as the italian dealership is buying 35 cars they wanted a discount), as in italy the economy is stable, and they are selling 911’s like hot cakes. They dealership that can’t move their 911 stock are utilising the Mandelow’s power grid, to identify which stakeholders they should notify first.
Low power/ low interest
General customers
Community
Uninvolved employees
Low power/ high interest
Porsche Enthusiast Clubs: Individuals or groups who are passionate about Porsche’s may have a high interest in the sale, especially if they were potential customers. However, they typically have low power to influence the dealership’s decision-making. You would want to inform these people, as they have a high interest in the Porsche inventory. They wouldn’t have any power over the decision, but you would probably want to inform them out of respect, as in the future the dealership may be selling Porches again, and could potentially use these types of people as customers.
High power/ low interest
Porsche(Manufacturer): Porsche, as the manufacturer, could have an interest in ensuring that the brand’s reputation and integrity are maintained. They may have contractual agreements or influence over the dealership’s operations, even if they are not directly involved in the sale to a competitor.
Lenders or Financial Institutions: If the dealership has outstanding loans or financial agreements with banks or other financial institutions, these creditors may have a significant say in the dealership’s financial decisions. They have the power to influence the dealership’s actions to protect their financial interests. You would want to manage these people carefully, as they have a low interest in the sale of stock at a discount, but have high power when it comes to their finances, as they would want to ensure the dealership wasn’t making a stupid decisions selling at a massive discount. You would most likely reassure them by informing them that all of the funds generated from the sale will be reinvested into purchasing the best selling cars.
High power/ high interest
Competitor/ Acquirer: The competitor purchasing the Porsches has both high interest and high power in this situation. They are directly involved in the transaction and stand to benefit from acquiring the Porches at a discounted price.
Prosch Manufacturer: The manufacturer of Porches would have a high interest in this transaction, as it could impact their brand reputation and pricing strategy. They have the power to influence or approve such sales, particularly if there are contractual agreements in place. These people have a high interest in the finances of the sale, and the sale of the 35 Porsches. You would inform them that in the current state of the economy, that the dealership wouldn’t expect to start selling the Porches for another 12 - 18 months, and that by selling the Porches at a discount and reinvesting all of the funds into their best selling cars, the business would be able to double their money within 12 months, and by the end of the 12 months the dealership could increase its market share by 5%.
