Stakeholders

Last updated Dec 7, 2022 Edit

• Business

A stakeholder is anybody with an interest in the business.

Starbucks Stakeholders:

• Employees
• Shareholders
• Customers
• Government
• Suppliers
• Local community
• Competitors
• Pressure groups
• Charities

Stakeholders can be categorized as either internal or external. An internal stakeholder is part of the business, whereas an external stakeholder is not.

Internal:

• Employees
• Shareholders

External:

• Customers
• Suppliers
• Local Community
• Competition
• Charities
• Pressure groups

Stakeholder needs should be considered when making decisions. This can help to avoid resistance to change.

• Businesses use stakeholder mapping to help inform decision-making
  • Stakeholder mapping the relative power of each stakeholder group against the degree of interest
  • This helps inform managers pm how important each stakeholder group is and therefore how involved they should be in the decision-making process.

• Leadership style
• Mission and objectives including:
  • Financial
  • Social
  • Ethical
  • Environmental
• Stakeholder power and interest
• Market conditions including competition
• External influences (eg, legislation)
• Business Form

• Based on intuition, gut feel and experience
• Key benefit - very quick!
• But hard to justify for business decisions involving significant risk.

• Based on data and analysis
• Downside: time-consuming and costly; no guarantee of the right decision.
• Increasingly common and automated, supported by Big Data and data analytics

Decision-making is continued here

Business