Page 20 - CIMA MCS Workbook May 2019 - Day 1 Suggested Solutions

CIMA MAY 2019 – MANAGEMENT CASE STUDY

Stakeholders may be categorised for JORD 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 JORD would include Directors
and management, employees and in particular design staff, project managers and qualified
quality assessors, who are critical to delivering the exact product on time for clients.

• connected stakeholders either invest time, money in the business or have dealings with the
company. For JORD this would include customers, technology companies and any supplier of
products for the manufacturing process. For future investment, providers of finance (e.g.
institutional shareholders) will expect their interest payments or dividends to be made on time.

• external stakeholders are those with no direct link to JORD but who can influence or be
influenced by its activities. For JORD this can include the government (local or national), trade
associations such as The Modular Home Builders Association, regulators e.g. the Heath and Safety
Executive in the UK. Compliance with these regulators etc. will affect costs, revenue generation
and growth key areas for JORD 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 “Friends of the Earth” and their demands on
companies in the industry to reduce waste from production and protect the environment
e.g. sustainable raw materials such as timber.

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 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 Planning
Committees when enhancing regional business operations and future manufacturing
centres.
Suggested strategy to manage stakeholders in this category ‐ Participation

70 KAPLAN PUBLISHING