• Created by: josie001
  • Created on: 05-08-22 14:02
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  • Stakeholders
    • Definition and examples
      • Eg. supermarket
        • Internal stakeholders
          • Owners/ shareholders
          • Managers
          • Employees
        • External stakeholders
          • Community/ customers
          • Suppliers
          • Banks
          • Government
      • PRL stakeholders
        • Internal
          • CEO Board
          • Department heads
          • Employees
        • External
          • Communities of clubs / customers that attend games
          • Suppliers eg. Evo, Oracle, Pinnacle
          • Shareholder clubs
          • Investors eg. CVC
    • Types and needs of stakeholders
      • Internal: Investors, directors, other departments
      • External: Town councils, government, regulatory bodies
      • Connected: Customers, suppliers, freight forwarders
      • Shareholders/ owners - high profits
      • Customers - good product/ service at a low price
      • Employees - Salary, good work conditions, high profits
      • Suppliers - prompt payment, large orders
      • Partners - Prompt response, clear direction
    • Stakeholder theory
      • Clarkson
        • Secondary stakeholders:•those that have a limited direct influence on the organisation and without whom the company would survive 
        • Primary: Those that have a direct effect on the company
      • Mendelow's matrix
        • Keep satisfied: (high power low interest)
          • Have the potential to move into the ‘High Interest and High Power’ group 
          • By keeping them happy they are less likely to gain interest and exercise their power to influence
        • Manage closely (High power, high interest
          • Likely have the power to stop the change or strategy going ahead if they are unhappy
          • Likely to have significant influence and may be the driver behind the change or strategy
          • Key players and a business will need to actively engage this group
        • Monitor (minimum effort, low power low interest
          • Unlikely to have an interest in the organisation and direction due to their lack of power to influence a situation
          • Likely to accept the position and show little resistance
        • Keep informed (Low power high interest)
          • Have an interest in what is happening, however they are unlikely to have the power to influence change
          • They could attempt to join forces with a group with power
      • Shareholder theory (CSR link)
        • Basic shareholder theory says that only shareholders have real claim to influence a company.  
        • Directors of the company have a moral and legal duty to only take into account shareholders’ interests.
        • Directors should concentrate purely on maximising profit so that shareholders get a return on their investments.
      • Instrumental and normative view of stakeholders
        • Instrumental
          • Reflects view that organisations have many legal and economic responsibilities.
            • If the organisation fulfils its responsibilities to its stakeholders, eg, employees, customers, it will maximise its profits.
        • Normative
          • Organisations have a moral duty towards all stakeholders.
          • Organisations should be ethical and philanthropic (based on the work of German philosopher Immanuel Kant)


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