Stakeholders

Question 1

What is the definition of a Stakeholder in Paul Hoang´s book?

Answer 1

“A Stakeholder refers to any person or organization that has a direct interest in and is affected by the performance of a business.” (Hoang, 2010, p. 60).

Question 2

All Stakeholders have the authority to affect Business operation?

Answer 2

Referring to Hoang (2010), not all Stakeholders have the authority in the business’s operation, such as the pressure groups and others.

Question 3

What is the opinion of Charles Handy about Business responsibility with Stakeholder?

Answer 3

“However, management theorists such as Charles Handy argue that it is in the best interest of an organization to listen to the needs of all stakeholders.” (Hoang, 2010, p. 60).

Question 4

How are Stakeholders divided?

Answer 4

“Stakeholders can be further categorized as internal or external.” (Hoang, 2010, p. 60).

Question 5

What is the definition of Internal Stakeholder in Paul Hoang´s book?

Answer 5

“Internal Stakeholders of a business are members of the organization.” (Hoang, 2010, p. 60).

Question 6

What is the definition of External Stakeholder in Paul Hoang´s book?

Answer 6

“External Stakeholders do not form part of the business (such as customers, suppliers and the government), but have a direct interest or involvement in the action of the organization.” (Hoang, 2010, p. 60).

Question 7

What are the things that Employees are likely to strive to improve?

Answer 7

“Employees are likely to strive to improve: Pay (wages and salaries) and other financial benefits; working conditions, such as hours of work and working environment; Job security; Training and career progression opportunities.” (Hoang, 2010, p. 60).

Question 8

What is the responsibility of Managers with Employees?

Answer 8

“Hence, it is important for managers to meet, as far as possible, the needs of their employees and to ensure that they are motivated. “ (Hoang, 2010, p. 61).

Question 9

What are the Shareholders (or Stockholders) expectation?

Answer 9

“They [Shareholder] invest their money in a company by purchasing share as they expect the company to generate a healthy return on their investment.” (Hoang, 2010, p. 61).

Question 10

Why Shareholders (or Stockholders) are important Stakeholders?

Answer 10

“They [Shareholder] are powerful Stakeholder group as they have voting rights and a say in how the business is managed.” (Hoang, 2010, p. 61).

Question 11

What are the aims of Suppliers as a Stakeholder of a Business?

Answer 11

“Suppliers may demand or aim for regular contracts with clients at good prices and request that customers pay their outstanding bills on time.” (Hoang, 2010, p. 62).

Question 12

It is for the interest of Business to satisfy suppliers needs?

Answer 12

“Businesses will wish to establish a good working relationship with their supplier in order to receive quality raw materials and stock on time and at a good price.” (Hoang, 2010, p. 62).

Question 13

What are the things that Customers want from Business?

Answer 13

“Hence, it is vital that businesses pay attention to the needs of their customers. Customers may demand more choice of better quality products at competitive prices. They also demand a pleasant and efficient purchasing experience.” (Hoang, 2010, p. 62).

Question 14

Why Business use market research?

Answer 14

“Businesses use market research […] to find out what customer wants and then try to meet these demands.” (Hoang, 2010, p. 62).

Question 15

Why is important for Business keep customers loyal?

Answer 15

“Businesses will aim to keep the customer loyal to their organization and to repeat-purchaser, who may even promote the business to their friends via word of mouth.” (Hoang, 2010, p. 63).

Question 16

What are the Special Interest Group?

Answer 16

A special interest group (SIG) is an organization that advocates certain issues, such as the prevention of cruelty to animals, protection of environment or prevention of smoking in public areas. They consist of members who are passionate about influencing changes in government policy and legislation for specific cause. In essence, they serve to protect the specialist needs and concerns (interest) of their members or followers. (Hoang, 2010, p. 63)

Question 17

What are the trades union aims?

Answer 17

Trade unions, or labour unions […] aim to uphold and enhance the conditions of work for their members. They may seek or campaign for: Wage and salaries to rise in line with inflation, because inflation erodes the value of money and increases the cost of living; the introduction of minimum wage to improve the earnings of those on relatively low incomes; better working conditions, including the provision of regular breaks or improving the physical working environment in the workplace. (Hoang, 2010, p. 63)

Question 18

Give me the first definition Pressure Group in Paul Hoang’s Book.

Answer 18

“Pressure groups are nonprofit organization established by their members to address a special interest of group.” (Hoang, 2010, p. 36).

Question 19

Give me the second definition Pressure Group in Paul Hoang’s Book.

Answer 19

“Pressure groups consist of individual with a common interest who seeks to place demands on organizations to act in a particular way or to influence a change in their behaviour.” (Hoang, 2010, p. 63).

Question 20

What is the definition of Boycotting in Paul Hoang’s Book?

Answer 20

“Boycotting is the recommendation to refuse to buy the products from certain business. This might be done by creating adverse publicity for the business. “(Hoang, 2010, p. 64).

Question 21

What is the meaning of Lobbying in Paul Hoang’s Book?

Answer 21

“Lobbying means using the strength of a pressure group to discuss and influence key issues […] in favour of its causes. Gaining public support can also help to influence governments to introduce legislation against socially undesirable business legislation.” (Hoang, 2010, p. 64).

Question 22

What is the meaning of Public relation in Paul Hoang’s Book?

Answer 22

“Public relations (PR) means getting positive publicity about specific opinion or cause, e.g. charities have often used famous celebrities in support of their mission.” (Hoang, 2010, p. 64).

Question 23

What is the meaning of Direct action in Paul Hoang’s Book?

Answer 23

“Direct action means the pressure group itself takes action to express their views.” (Hoang, 2010, p. 64).

Question 24

What is the definition of Industry Trade Group in Paul Hoang’s Book?

Answer 24

“These are organizations [industry trade groups] that specialize in public relations with the aim of promoting a particular industry, through education and advertising. An industry trade group is funded by businesses that operate in specific industry.” (Hoang, 2010, p. 63).

Question 25

Is Local Community a Special Interest Group?

Answer 25

“A final example of SIGs is the local community, which will place demands on the businesses operate in their community.” (Hoang, 2010, p. 64).

Question 26

What normally are Local Community demands?

Answer 26

These [demands of local community] may include: Job creation and opportunities to provide extra income and spending in local community; the need to be considerate of the local environment, i.e. organizations must be responsible for their activities; a wide choice in provision of products and at competitive price; sponsorship of local and fund-raising events. (Hoang, 2010, p. 64)

Question 27

Job creation is always so important for local residents?

Answer 27

“Local residents do not simply welcome businesses which offer job opportunities.” (Hoang, 2010, p. 64).

Question 28

Why competitors are interested in business performance?

Answer 28

Competitors will be interested in the activities of business for several reasons, including: To avoid anti-competitive practices of rival firms. Larger firms may wish to exploit their monopoly power, although this may be restricted by government intervention. As a stimulus to innovation and product development. Firms may benefit from some competition as rivalry can lead to more ideas being generated. A monopolist may not have the incentive to create new product or to be innovative, due to the lack of competition. (Hoang, 2010, p. 65)

Question 29

Have the Government influence in Business?

Answer 29

“The government is an important external stakeholder that is likely to have a large influence on business behaviour.” (Hoang, 2010, p. 66).

Question 30

What are the reasons for Governments to has a direct interest in business activity?

Answer 30

The government will be interested in business activity for several reasons, including assurances that: Unfair business practices are avoided; health and safety standards at work are met; the correct amount of corporation tax is paid from business profit; payment of business rates are adhered to (These are taxes paid for the provision of local business service such maintaining the local road network); consumer protection laws are observed and followed; employment legislation is being upheld by organization. (Hoang, 2010, p. 66)

Question 31

Could Government be a financial resource for Business?

Answer 31

“Governments may also have a financial stake in business organization […].” (Hoang, 2010, p. 66).

Question 32

What it is supposed that the Government is aiming when it is affecting business activity?

Answer 32

“Ultimately, the government aim to ensure that businesses act in public’s interest.” (Hoang, 2010, p. 66).

Question 33

Is Government good for business performance?

Answer 33

“On the one hand, the government can stimulate business activity. This might be done by lowering interest rates or taxes to create employment and investment opportunities.” (Hoang, 2010, p. 66).

“On the other hand, government intervention can constrain businesses.” (Hoang, 2010, p. 66).

Question 34

Having a good relation with Government is good for business performance?

Answer 34

“Organizations can also benefit from having a good reputation or relationship with the government.” (Hoang, 2010, p. 66).

Question 35

Why there are problems between Stakeholders?

Answer 35

“Since different stakeholder groups have varying interest in an organization, it is likely that conflict will arise.” (Hoang, 2010, p. 67).

Question 36

Can Business satisfy all the Stakeholders needs at the same time?

Answer 36

“Businesses will need to take decisions that will address the interest of some stakeholder groups but at expense of not being able to meet the need of other groups.” (Hoang, 2010, p. 67).

“Margaret thatcher, a former UK prime minister, once said that standing in the middle of the road would get you get hit by traffic coming from both side. “(Hoang, 2010, p. 67).

“Conflict arises because the business cannot necessarily meet the needs of all its stakeholders simultaneously.” (Hoang, 2010, p. 67).

Question 37

Is a problem the fact that Stakeholder has more than one interest in the business performance?

Answer 37

“Another source of potential conflict is that some stakeholders have more than one interest in an organization.” (Hoang, 2010, p. 67).

Question 38

Are Stakeholders conflict a long-term conflict?

Answer 38

“Modern management thinking suggest that stakeholder conflict is a short term, albeit potentially ever present, phenomenon.” (Hoang, 2010, p. 67).

Question 39

Is it important for Business to assist Stakeholders when there is a conflict-related with business activity of the firm itself?

Answer 39

“Nevertheless, for any business to progress there must be some form of resolution to the conflict.” (Hoang, 2010, p. 68).

Question 40

Is the bargaining power an important factor in the Stakeholder conflict?

Answer 40

“The outcome of any negotiation will depend largely on the relative bargaining power of the different stakeholders.” (Hoang, 2010, p. 68).

Question 41

What is the possibility for Business to fulfill all Stakeholder needs at the same time?

Answer 41

“It is highly unlikely that a business can fulfil the aims of all its stakeholders at the same time; yet it is undesirable to aim to maximize the needs of just one stakeholder group.” (Hoang, 2010, p. 68).

Question 42

What is the possibility for Business to have serious problems with not satisfied Stakeholders?

Answer 42

“If a particular stakeholder group is not catered for, then it is likely that they will cause disruptions and problems for the business.” (Hoang, 2010, p. 68).

Question 43

How Business can solve his problems with all Stakeholders in efficient way?

Answer 43

“Most businesses will aim for a ‘best fit’ compromise so that stakeholder groups are all reasonably pleased with the conduct of the business.” (Hoang, 2010, p. 68).

Question 44

What is Gerry Johnson and Kevan write in his book about Stakeholders conflict?

Answer 44

“In their book Exploring Corporate Strategy, Gerry Johnson and Kevan argue that not all stakeholders groups are equal.” (Hoang, 2010, p. 68).

Question 45

How useful Gerry Johnson and Kevan theory of Stakeholders mapping?

Answer 45

“Their stakeholder mapping model can be used to assess the relative interest of stakeholders in a business and their relative power (or influence) on business behavior.” (Hoang, 2010, p. 68).

Question 46

What are the conclusions in Gerry Johnson and Kevan theory of Stakeholders mapping?

Answer 46

As Hoang (2010) write in his book ‘Business and Management’ the stakeholder with high level of interest and power must receive the most attention, as Johnson and Scholes said they are the ‘key players’, obviously the stakeholder with low interest and power may be ignored by the businesses; also, the stakeholder with low interest and high power must be satisfied by business and the stakeholder with high interest and low power should be informed by businesses.

Question 47

Would the Stakeholders’ power last forever?

Answer 47

“The relative power and level of interest of stakeholder is likely to change with time.” (Hoang, 2010, p. 69).

Question 48

Who is the most important Stakeholder?

Answer 48

“Many leading theorists believe that the stakeholder concept holds priority over the shareholder concept.” (Hoang, 2010, p. 70).

“By contrast, Milligan and Smith argue that employees are the key shareholder group.” (Hoang, 2010, p. 70).

Question 49

When Business should take legal action a Stakeholder?

Answer 49

Finally, if the demands of stakeholders are ridiculous or the messages being spread by special interest groups are misleading, then the business will take counter measures to correct this problem. The business will defend its position by issuing statements to correct any rumours or false messages being communicated, use counter publicity campaigns, or take legal action against parties that makes false allegations about business. (Hoang, 2010, p. 70)