understanding role + importance of stakeholders

Question 1

stakeholder definiton

Answer 1

any individual or organisation who has a vested interest in the activities and decision making of a business

Question 2

examples of internal stakeholders

Answer 2

• shareholders / owners
• managers and employees

Question 3

examples of external stakeholders

Answer 3

• customers
• suppliers
• banks + other finance providers
• trade unions
• government
• local community
• other external groups
• competitors
• the media

Question 4

what interest would employees have in the business

Answer 4

• promotional prospects
• job security
• good working conditions

Question 5

what interest would shareholders have in the business

Answer 5

• satisfactory return on investment

Question 6

what interest would management team have in the business

Answer 6

• share options
• privileges
• bonuses

Question 7

what interest would suppliers have in the business

Answer 7

• regular orders
• prompt payments

Question 8

what interest would customers have in the business

Answer 8

• convenience
• low prices
• safe products

Question 9

what interest would creditors have in the business

Answer 9

• payments on time
• fulfilled satisfactory

Question 10

what interest would local community have in the business

Answer 10

• jobs
• consideration
• community involvement
• responsible attitude

Question 11

what interest would government (local + national) have in the business

Answer 11

• employment
• local and regional investment
• taxes

Question 12

conflicts with win + win situations

Answer 12

employees want rewards for working hard for shareholders but shareholders want a high return on investment

employees who are treated fairly with good rewards will work harder, increases profit, share price up
(win win situation)

Question 13

what are the 4 quadrants of stakeholder mapping

Answer 13

1) keep satisfied
2) monitor
3) manage closely
4) keep informed

Question 14

what does stakeholder mapping do

Answer 14

• categories the stakeholders depending on their power and interest
• useful model as it recognises different stakeholders have diff levels of power and interest
• informs business on how to communicate with each stakeholder

Question 15

influences on the relationship with stakeholders

Answer 15

• have status and power outside and inside the organisation
• control resources relevant to the project
• PESTAL

Question 16

how to manage the relationship with different stakeholders

Answer 16

• excellent communication is vital, especially during periods of change within business
• may need to consult with different stakeholder groups prior to making decisions