Skip to main content

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

    You may also like to read

    1. Corporate Governance, UK
    2. Combined Code of Corporate Governance
    3. Honda 50cc Bike - Imposed Strategy
    4. Red Monkey Innovation
    5. World's 50 most innovative companies
    6. Resistance to Change
    7. Strategic Drift
    8. Strategic Development
    9. Books of Mintzberg on Amazon
    10. Books of Philip Kotler
    11. Porter's Diamond
    12. Understanding Three Stages of Change
    Further readings:

    Labels:
    Post a Comment

    Popular posts from this blog

    Throughput Accounting

    Throughput accounting (TA) is an alternative to cost accounting proposed by Eliyahu M. Goldratt. It is not based on Standard Costing or Activity Based Costing (ABC). Throughput Accounting is not costing and it does not allocate costs to products and services. It can be viewed as business intelligence for profit maximization. Conceptually throughput accounting seeks to increase the velocity at which products move through an organization by eliminiating bottlenecks within the organization.


    Cost (or Management) accounting is an organization's internal method used to measure efficiency. Since no one outside the organization uses such internal accounts for investment or other decisions, any methods that an organization finds helpful can be used.


    Throughput accounting improves profit performance with better management decisions by using measurements that more closely reflect the effect of decisions on three critical monetary variables (throughput, inventory, and operating expense — defin…
    Read more

    Learning Curve Theory

    Learning Curve Theory is concerned with the idea that when a new job, process or activity commences for the first time it is likely that the workforce involved will not achieve maximum efficiency immediately. Repetition of the task is likely to make the people more confident and knowledgeable and will eventually result in a more efficient and rapid operation. Eventually the learning process will stop after continually repeating the job. As a consequence the time to complete a task will initially decline and then stabilise once efficient working is achieved. The cumulative average time per unit is assumed to decrease by a constant percentage every time that output doubles. Cumulative average time refers to the average time per unit for all units produced so far, from and including the first one made.

    Major areas within management accounting where learning curve theory is likely to have consequences and suggest potential limitations of this theory.


    Areas of consequence:
    A Standard Costing …
    Read more

    Resistence to Change - Approaches of Kotter and Schlesinger

    The Six (6) Change Approaches of Kotter and Schlesinger is a model to prevent, decrease or minimize resistance to change in organizations.
    According to Kotter and Schlesinger (1979), there are four reasons that certain people are resisting change: Parochial self-interest (some people are concerned with the implication of the change for themselves ad how it may effect their own interests, rather than considering the effects for the success of the business)Misunderstanding(communication problems; inadequate information)Low tolerance to change (certain people are very keen on security and stability in their work)Different assessments of the situation (some employees may disagree on the reasons for the change and on the advantages and disadvantages of the change process) Kotter and Schlesinger set out the following six (6) change approaches to deal with this resistance to change: Education and Communication - Where there is a lack…
    Read more