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3.4 Another approach Primary stakeholders: have a contractual relationship with the organisation. Includes internal and connected stakeholders. Secondary stakeholders. Equates to external stakeholders. 3.5 Stakeholder conflict Between managers and shareholders 3.6 Stakeholder mapping: power and interest Mendelow’s Matrix The matrix outlines how to approach each stakeholder Stakeholder mapping is used to assess the significance of stakeholder groups. Segment D: strategy must be acceptable – key players Segment C: keep satisfied Segment B: keep informed Segment A: minimal effort Stakeholders may move from quadrant to quadrant. 3.7 The strategic value of stakeholders The firm can make strategic gains from managing stakeholder relationships. 3.8 Measuring stakeholder satisfaction Qualitative Quantitative Questions Which of the following is not a connected stakeholder? A Customer B Employee C Landlord (Lessor) D Shareholder Answer: B Questions If a stakeholder has a high level of interest in the company and has high power under Mendelow’s stakeholder mapping grid, the stakeholder is classified as: A Minimal effort B Keep informed C Key players D Keep satisfied Answer: C Which of the following is a connected stakeholder? A Professional body B Employee C Supplier D Manager Answer: C Why can conflict between stakeholders be quite common? A Different shareholders will have different risk/return profiles B Managers do not need to take their views into account C Their interests will generally be widely different D All of the above Answer: C Which of the following is regarded as a primary stakeholder? A One who is more strategically important than others B The government C One who has a contractual relationship with the organisation D An external stakeholder Answer: C SUMMARY Part A The business organisation, its stakeholders and the external environment Chapter 1 Business organizations and their stakeholders 1 Types of organisation 1
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