Page 14 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Chapter 1

Stakeholders

3.1 Who are stakeholders?

Stakeholders are the individuals and groups who have an interest in the organisation
and as such may wish to influence its mission, objectives and strategy.

3.2 Types of stakeholders

 internal stakeholders (employees and management)

 connected stakeholders (shareholders, customer and suppliers)

 external stakeholders (governments, community, pressure groups)

 primary stakeholders have formal contractual relationships

 secondary stakeholders have no formal relationship with the organisation

3.3 Stakeholder Conflicts

Stakeholders Example of conflict

Employees v managers Jobs/wages versus bonus (cost efficiency)

Customers v shareholders Product quality/service levels versus profits/dividends

General public v shareholders Effect on the environment versus profit/dividends

Managers v shareholders Growth versus independence

8