Chapter 2

Question 1

Stakeholders

Answer 1

Stakeholders are groups of individuals who have an interest in or expectation or an organisation.

Question 2

3 main groups of stakeholders

Answer 2

Internal
Connected
External

Question 3

Internal stakeholders

Answer 3

Internal stakeholders are connected to an organisation and have a strong influence on how the organisation is run.

Employees
Directors & other management

Question 4

Connected stakeholders

Answer 4

Connected stakeholders have a contractual relationship with the organisation and are interested in how business is run

Shareholders
Customers
Suppliers
Providers of finance

Question 5

External stakeholders

Answer 5

External stakeholders tend to have little interest in the organisation, but can still effect or be effected by the organisation

General community
Environmental groups
Government
Trade unions

Question 6

Primary stakeholders

Answer 6

Have a contractual relationship with the organisation. Internal or connected stakeholders.

Question 7

Secondary stakeholders

Answer 7

Do not have a contractual relationship with the organisation but do have an interest in the organisation. External stakeholders.

Question 8

Mendelow’s Matrix

Answer 8

Level of interest

                      Low                 High

         Low    Minimal              Keep
                     Effort             Informed Power 

         High     Keep                Key
                   Satisfied           Players

Question 9

Generalisations that could lead to interest (4)

Answer 9

High personal financial or career investment in what the business does

Absence of alternative (job, customer, supplier or employer)

Potential to be called to account for fading to monitor (local councils or regulators)

High social impact of firm (well known, visible product association with particular issues.)

Question 10

The purpose of the matrix is to access (2)

Answer 10

Whether stakeholder resistance is likely to inhibit the success of the strategy.

What policies may ease the acceptance of the strategy?

Question 11

Minimal effort (Low power, low interest) strategy

Answer 11

Lack of interest and power makes them malleable. They are more likely than others to accept what they are told and follow instructions.

Question 12

Keep informed (Low power, high interest)

Answer 12

Positively disposed groups from this quadrant may lobby others to support the strategy.

Also if the strategy is presented as rational or inevitable to the dissenters, or a show of consultation gone through, this may stop them joining forces with more powerful dissenters in C and D.

Question 13

Keep satisfied (High power, low interest)

Answer 13

Key is to keep the occupants satisfied to avoid them gaining interest and being a key player. This is usually done by reassuring them of the likely outcomes of the strategy well in advance.

Question 14

Key Players (High power, high interest)

Answer 14

These stakeholders can be major drivers of the change and major opponent of the strategy. Initially there should be education/communication to assure them that the change is necessary, followed by discussion of how to implement it.