Business Organisation Stakeholders
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Questions and Answers

What is the primary factor that determines which stakeholder's needs are more important in a conflict?

  • The level of environmental impact the stakeholder can cause
  • The level of interest the stakeholder has in the decision
  • The level of profit the stakeholder can generate for the organisation
  • The level of power the stakeholder has over the organisation (correct)

    • What is the purpose of Mendelow's power-interest matrix?

  • To identify the stakeholders with the most power
  • To evaluate the effectiveness of stakeholder communication strategies
  • To determine the level of interest stakeholders have in a decision
  • To plot each stakeholder according to their power and interest, and identify the key players (correct)

    • What is the result of plotting each stakeholder on the power-interest matrix?

  • A plan for stakeholder communication and engagement
  • A list of all stakeholders affected by the decision
  • A ranking of stakeholders by their level of power
  • The identification of key players, whose needs must be considered (correct)

    • Why is it important to identify the dominant stakeholder in a conflict?

    <p>To prioritise the needs of the stakeholders with the most power</p> Signup and view all the answers

    What is the primary purpose of stakeholder mapping?

    <p>To identify the key players and their needs, for strategy formulation and evaluation</p> Signup and view all the answers

    What is the result of a stakeholder having a high level of power and interest in a decision?

    <p>The stakeholder is considered a key player, and their needs must be prioritised</p> Signup and view all the answers

    What is the term for stakeholders who have a high level of power, but a low level of interest in a decision?

    <p>Minimal effort stakeholders</p> Signup and view all the answers

    What is the term for stakeholders who have a low level of power, but a high level of interest in a decision?

    <p>Keep-informed stakeholders</p> Signup and view all the answers

    Why is it important to manage stakeholder relationships effectively?

    <p>To achieve the organisation's goals and objectives</p> Signup and view all the answers

    What is the primary source of power for employees in a conflict with management?

    <p>Their ability to withhold their labour</p> Signup and view all the answers

    Study Notes

    Stakeholders in Business Organisations

    • Stakeholders can be internal, external, or connected to the organisation
    • External stakeholders tend to have no direct link to the organisation but can influence or be influenced by its activities

    External Stakeholders

    • The community at large can be a stakeholder, especially if their lives are affected by the organisation's decisions
    • Environmental pressure groups may stage protests or 'sit-ins' if they feel the organisation is harming the environment
    • Governments are stakeholders as they provide legislation and regulations that organisations must follow
    • Trade unions take an active part in the decision-making process to ensure employees' interests are represented

    Characteristics of Stakeholders

    • Stakeholders have diverse objectives and needs that must be taken into account by the organisation
    • Stakeholders can have conflicting objectives, such as employees vs managers, customers vs shareholders, and the general public vs shareholders

    Managing Stakeholder Expectations

    • Organisations must manage stakeholder expectations and needs to maintain productive business relationships
    • The Mendelow framework can be used to identify the dominant stakeholder(s) and their needs
    • The power-interest matrix can be used to plot stakeholders according to their power and interest in a particular decision

    Mendelow's Power-Interest Matrix

    • The matrix is used to identify the dominant stakeholder(s) and their needs
    • The matrix plots stakeholders according to their level of power and interest in a particular decision
    • The four quadrants of the matrix are:
      • Low power, low interest: minimal effort required
      • Low power, high interest: keep informed
      • High power, low interest: keep satisfied
      • High power, high interest: key players

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    Description

    Identify and understand the different types of stakeholders in a business organisation, including external stakeholders and their diverse objectives.

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