Understanding The Role And Importance Of Stakeholders Flashcards
What is a stakeholder
Individuals or groups within society who have an interest in an organisations operation and performance.
Stakeholder needs- Shareholders
- Steady return on investment in form of dividends.
- Investment that doe not lose value.
- Preferred treatment as customers.
Stakeholders needs- Employees
- Steady and regular income.
- Safe working conditions.
- Job security.
Stakeholder needs- Customers
- Reliable supply of goods.
- Clear pricing policies.
- Safe products.
- After sales service and technical support.
Stakeholder needs- Suppliers
- Frequent and regular orders.
- A sole supplier agreement.
- Fair prices.
Stakeholder needs- Local Community
- Steady employment.
- Avoidance of pollution and noise.
- Provision of facilities for local community.
Stakeholder mapping- Quadrant A- Minimal Effort
- This is not a powerful group of stakeholders.
- They have a low power and a low level of interest.
- Managers do not need to worry too much about this group and may only update them using general communications.
Stakeholder mapping- Quadrant B- Keep Informed
- These have low power but a high level of interest.
- Managers should keep this group informed on its interests area and may choose to consult on specific low risk matters with this group.
- An example is the local community.
Stakeholder mapping- Quadrant C- Keep satisfied
- These have high power but a low level of interest.
- It is important for managers to engage and consult with this group and possibly aim to increase the level of interest.
- An example are employees.
Stakeholder Mapping- Quadrant D- Manage closely
- These have high power and high levels of interest.
- Managers need to keep this group happy, possibly by involving them in the decision making process.
- An example is suppliers and customers.
Stakeholder possible needs- Suppliers
- Continued, profitable trade with the business.
- Financial stability.
Stakeholder possible needs- Banks and Finance providers
- Can the business repay amounts loaned or invested.
- Profitability and cash flows of the business.
- Growth in profits and value of the business.
Stakeholder possible needs- Government
- The correct collection and payment of taxes.
- Helping the business grow- creating jobs.
- Compliance with business legislation.
Stakeholder possible needs- Local Community
- Success of the business- Particularly creating and retaining jobs.
- Compliance with local laws and regulations.
Stakeholder possible needs- Shareholders/Owners
- Return on investment + profits and dividends.
- Success and growth of the business.
- Proper running of the business.
Stakeholder possible needs- Managers and Employees
- Rewards, including basic pay and other financial incentives.
- Job security and working conditions.
- Promotion opportunities + job satisfaction and status- motivation, roles and responsibilities.
Stakeholder possible needs- Customers
- Value for money.
- Product quality and customer service.
