Stakeholders And Business Strategy

Stakeholders
 and
 Business
 Strategy
 

  Different
  stakeholders
  have
  varying
  degrees
  of
  interest
  in
  the
  activities
  of
  an
 organization.
  In
  deciding
  how
  to
  deal
  with
  conflicting
  stakeholder
  needs,
  leaders
  will
 need
 to
 look
 at
 three
 key issues:
 
  1. The
  type
  of
  business
  organization
  in
  question.
  A
  partnership
  may
  aim
  for
  profit
  as
  a
  priority
  whereas  a
  charitable
  organization
  is
  likely
  to
  have
  different
  aims.
  Hence,
  the
  partners
  may
  see
  the
  owners
  as
  the
 key
  stakeholder
  whereas
  the
  local
  community
  may
  be
  the
  most
  important
  group
  for
  the
  charitable
  organization.
  A
 limited
  company
  will
  be
  accountable
  to
  its
  shareholders;
  so
  will
  have
  to
  give
  them
  priority
  as
  a
  stakeholder
 group. 
  2. The
 aims
 and
 objectives
 of
 the
 business.
 If
 a
 business
 has
 expansion
 plans,
  for
  instance,
  then
  the
  proportion  of
  profits
  allocated
  to
  its
  owners
  will
  be
  less
  than
  otherwise.
  Instead
  the
  views
  of
  managers
  and
  directors
 will
  be
  given
 a
 higher
 priority
 in
 such
 situations.
 
  3. The
 source
 and
 degree
 of
 power
 of
 each
 stakeholder
 group. Customers
 will
  have
  more
  power
  if
  the
  business
  is
  selling
  a
  product
  in
  a
  mass
  market
  where
  there
  are
 ...