Page 19 - MCS August Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

• connected stakeholders either invest time, money in the business or have dealings with the
company. For MONTEL this would include shareholders, investors, suppliers, technology
companies and any supplier of products for the delivery of the service. Providers of finance will
expect their interest payments or dividends to be made on time.

• external stakeholders are those with no direct link to MONTEL but who can influence or be
influenced by its activities. For MONTEL this can include the government (local or national), trade
associations such as The GMB 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 MONTEL 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 “Greenpeace” and their campaign against toxic
chemicals which are still present (although vastly reduced) in digital cameras.

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 (CPT) 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 regional business operations etc.

Suggested strategy to manage stakeholders in this category ‐ Participation

It is however worthy of mention that stakeholders can move between these categories in certain
circumstances. For example, trade unions/associations can easily become key players in business
decisions to protect the rights of members.

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