The importance of stakeholders 2

Question 1

What is a stakeholder map?

Answer 1

a tool to assess the interest and power of stakeholders in order to make decisions and how to manage them

Question 2

High power low interest?

Answer 2

-this could be key shareholders who only care about the return on their investment. A business may try to increase their involvement in a business

Question 3

High interest high power?

Answer 3

A customer who may determain a large percentage of the businesses sales

Question 4

High interest low power

Answer 4

local resident / concerned about a businesses decisions.

Question 5

Internal factors influencing stakeholder relationships?

Answer 5

1) Management / Leadership - differing leadership styles may change how a manager views employees e.g Blake and Mouton Grid
2) Objectives -profit objectives more aligned with shareholders interest. Growth objectives more aligned to employees
3) Size / Ownership - Sole traders will not have the pressure of meeting shareholders expectations and may not have a big impact on local community

Question 6

External factors influencing stakeholder relationships?

Answer 6

1) Market Conditions - Demand and competitiveness of a market influences businesses decisions
2) Stakeholder Power - shareholders and important customers will be given greater focus than a stakeholder with a smaller influence on the business
3) Government Policy - Business will have to meet the legal requirement. e.g Employment legalisation