Stakeholders (3.17)

Question 1

`What is a stakeholder?

Answer 1

Anyone who has an interest in a business
internal or external
Short or long term
Might have no influence on the business
Will be interested in different things

Question 2

what are some internal stakeholders?

Answer 2

employees
management
owners
shareholders

Question 3

what are some external stakeholders?

Answer 3

customers
suppliers
government
lenders
local community

Question 4

What is the Mendelow framework used for?(accounting stakeholders)

Answer 4

To understand the influence that each stakeholder has over an organisations objectives/ strategy

Question 5

What do you aim to find from the Mendelow framework?

Answer 5

establish which stakeholders have the most influence by estimating each stakeholders power, interest, in affairs

Question 6

Who is the person with the highest combined power and interest likely to be?

Answer 6

those with the most actual influence over objectives

Question 7

What is power? (stakeholders)

Answer 7

a stakeholders ability to influence objectives
how much they can do

Question 8

What is interest? (stakeholders)

Answer 8

stakeholders willingness
how much they care

Question 9

how do you calculate influence? (stakeholders)

Answer 9

power x interest

Question 10

What can be done when stakeholder influence is calculated?

Answer 10

can decide how much time and effort it wishes to cater to the stakeholders needs

Question 11

How much time does someone with low interest and low power need?

Answer 11

Minimal effort
can be ignored (doesn’t account for ethics or morals)

Question 12

How much time does someone with high interest and low power need?

Answer 12

Keep informed
may join other stakeholders to increase influence to exert greater pressure

Question 13

How much time does someone with low interest and high power need?

Answer 13

keep satisfied
all need to do become more influential is re-awaken interest
need to keep satisfied (management strategy)

Question 14

How much time does someone with high interest and high power need?

Answer 14

Key players
highest influence
most attention form the business
conflicts can occur is there are differences in objectives (decision making difficult)

Question 15

What are the limitations of the Mendelow framework?

Answer 15

hard to measure power and interest (difficult to place especially if more then one group in square)
stakeholders can move around the square needs regular reviewing and possible strategy changes