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Stakeholder Analysis

A Stakeholder Analysis is an approach that is frequently used to identify and investigate the Force Field formed by any group or individual who can affect or is affected by the achievement of the objectives of an organization. Stakeholder Analysis identifies the ways in which stakeholders may influence the organization or may be influenced by its activities, as well as their attitude towards the organization and its targets.

List of typical stakeholders
  1. Owners and stockholders, investors
  2. Banks and creditors
  3. Partners and suppliers
  4. Buyers, customers and prospects
  5. Management
  6. Employees, works councils and labor unions
  7. Competitors
  8. Government (local, state, national, international) and regulators
  9. Professional associations, Industry trade groups
  10. Media
  11. Non-governmental organizations
  12. Public, social, political, environmental, religious interest groups, communities



    The power and influence of stakeholders:

    The extent to which stakeholders affect the activities of an organisation depends on the relationship between the stakeholder and the organisation. Mendelow's matrix provides a way of mapping stakeholders based on the power to affect the organisation and their interest in doing so. It identifies the responses which management needs to make to the stakeholders in the different quadrants.

    Mendelow's Matrix





    Following categorisation of stakeholders in a manufacturing company:

    Low + Low : Small customers, Small Shareholders
    High + Low: Major Customers, Central Govt, Media
    Low + High: Employees, Environmental Groups, Local Community
    High + High: Institutional Investors, Local Planning Authority

    Detailed reading on Stakeholder Analysis


    Regards,

    Santosh Puthran

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