MGT353 - Chapter 01

Analyzing stakeholder interests includes addressing

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Unformatted text preview: ests includes addressing: What are the groups’ concerns? What does the group want/expect from their relationship with the firm? Examples: Stockholders have an ownership interest, they expect to receive dividends and capital appreciation Customers are interested in gaining fair value and quality in goods and services they purchase Public interest groups advance broad social interests 1-22 11 2/10/2014 Stakeholder Analysis – Question 3 What is the power of each stakeholder? Stakeholder power is the ability of a group to use resources to make an event happen or to secure a desired outcome There are 4 types of stakeholder power: Voting power Economic power Political power Legal power 1-23 Stakeholder Analysis – Question 4 How are stakeholder coalitions likely to form? Stakeholder groups often have common interests and will form temporary alliances to pursue these common interests Coalitions are very dynamic (can change at any time) Coalitions are increasing international Internet has enabled coalitions to form quickly, across political boundaries International alliances, coupled with media interest, can be a very powerful strategic force for companies 1-24 12 2/10/2014 Stakeholder Salience and Mapping Salient – stands out from a background, is seen as important, or draws attention Stakeholders stand out (i.e., are salient) to managers when they have power, legitimacy, and urgency Managers can use the salience concept to develop a stakeholder map – a graphical representation of the relationship of stakeholder salience to a particular issue A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue 1-25 Figure 1.4 Stakeholder Map 1-26 13 2/10/2014 The Corpo...
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