Page 21 - CIMA MCS Workbook November 2018 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

Stakeholders may be categorised for GRAPPLE as follows:

• internal stakeholders are those individuals inside the company whose objectives are likely to
have a strong influence on how it is run. Internal stakeholders for GRAPPLE would include
Directors and management, employees etc.

• connected stakeholders either invest time, money in the business or have dealings with the
company. For GRAPPLE this would include shareholders (although this is a family business they
will still require their dividends), investors, suppliers, technology companies and any supplier of
products for the manufacture and delivery of the product. Providers of finance will expect their
interest payments or dividends to be made on time.

• external stakeholders are those with no direct link to GRAPPLE but who can influence or be
influenced by its activities. For GRAPPLE this can include the government (local or national), trade
associations such as The British Soft Drinks Association (BSDA) in the UK, regulators e.g. the
Health and Safety Executive in the UK. Compliance with these regulators etc. will affect costs,
revenue generation and growth ‐ key areas for GRAPPLE given its business model.

These stakeholders can then be classified and managed as follows:
 Low Interest – Low power:

Their lack of interest and power makes them open to influence and are likely to accept
what they are told and follow instructions e.g. casual workers.

Suggested strategy to manage stakeholders in this category – Inform and direct

 High Interest – Low power:

These stakeholders are interested in the strategy but lack power e.g.
pressure/environmental groups such as “Action on Sugar” in the UK and their campaign
against the level of sugar content in soft drinks especially for vulnerable groups such as
children.

Suggested strategy to manage stakeholders in this category ‐ Education/communication

 Low Interest – High power:

The key here is to keep these stakeholders satisfied to avoid them gaining interest and
exercising power e.g. trade unions, governments, regulators, trade associations, media (The
Grocer) etc.

Suggested strategy to manage stakeholders in this category ‐ Involvement
 High Interest – High power:

These stakeholders are the major drivers of change and could prevent the achievement of
plans if not satisfied. There will be a clear need to communicate plans to them and then
discuss implementation issues e.g. investors and providers of finance, local councils,
Planning Committees when enhancing or developing business operations etc.

Suggested strategy to manage stakeholders in this category ‐ Participation

KAPLAN PUBLISHING 71