Chapter 13:stakeholder

Stakeholder divided into internal, connected and external. But all of them is a group or individual, who interesting in the organization

INTERNAL STAKEHOLDER

Someone intimately connected to the organization
-Employee

• They will care about the working position of them in company and also the salary of them. If the strategic manager pay according to the employee's responsibility, the employee will not leave the company

-Manager/Directors

• They take care about the company growth, so if the growth is occurring they able to get more bonus and can keep the job security
  

CONNECTED STAKEHOLDER

Connected stakeholder mean to contractual relationship, and also the primary objectives of the company to be succeed

-Shareholder

• Shareholder invest the capital into the business is want to gain the contribution and growth of the business

-Customer

• Strategic manager have to forecast the each customer's need and provide the value-for-money products and service to meet the request of customer

-Supplier

• Without the supplier supplying the goods, the business also cannot survive, so the payment to them need to paid promptly but also will not block the company's run

-Finance Providers

• If the company planned to enlarge their company's scale, so the providing the loan from bank is unavoidable, so the company have to repay the finance to show the ability of the firm to generate money

EXTERNAL STAKEHOLDERS

The group does not directly influence the organization
-Community At Large

• General public is a very powerful group to make sure the organization exist

-Environmental Pressure Groups

• This group have a very big force to let the organization growing, so the strategic manager have to make the project's decision to meet the standard of the group to avoid the obstruct from the group

-Government

• the strategic manager have to make sure all the activities of the company follow the government's law to ensure can continuously existed

-Trade Unions

• Take care about all the employee to avoid the butt in of the Trade Unions

STAKEHOLDER CONFLICT

Different in need will bring in conflict of the different stakeholder

1. Employees versus manager

• Employees only want finish their job but the manager want them to more hardworking to achieve organization's goals and then the manager can get the bonus from company

2. Customers versus shareholders

• Shareholders want to earn a lot of money from their customer with providing the low quality of goods but the customers needs high quality goods in low price

3. General public versus shareholders

• Shareholders want to make a big profit from the business with make something that will damage the global environment

4. Managers versus shareholders

• The manager just want the organization growth in safety stage but slower than the shareholder want

It is very important of the organization make every decision because the decision have to meet all the needs of the stakeholders. When the organization having the difficulty to make decision, they will use Mendelow's power-interest matrix

low interest + low power = Minimal effort
low interest + high power = Keep informed
high interest + low power = keep satisfied
high interest + high power = KEY PLAYER

From above, the dominant stakeholder can be identified from the key player. The need of the key player will be consider first in the decision making later.