MGT353 - Chapter 01

Carries out its primary purpose of providing society

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Unformatted text preview: purpose of providing society with goods and services 1-15 MD3 Nonmarket Stakeholders Nonmarket stakeholders are people or groups who—although they do not engage in direct economic exchange with the firm—are affected by or can affect its actions 1-16 8 Slide 15 MD2 Moved slide up to precede Figure 1.2 Michael DeMasi, 7/30/2012 Slide 16 MD3 Moved slide up to precede Figure 1.2 Michael DeMasi, 7/30/2012 2/10/2014 Further Distinction Internal stakeholders are those, such as employees and managers, who are employed by the firm They are “inside” the firm, in the sense that they contribute their effort and skill, usually at a company worksite External stakeholders are those who—although they may have important transactions with the firm—are not directly employed by it 1-17 Figure 1.2 The Stakeholders of Business 1-18 9 2/10/2014 Figure 1.3 A Firm and Its Stakeholders 1-19 Stakeholder Analysis It is part of every manager’s job Process whereby identify relevant stakeholders and analyze their interest and power Asks 4 questions: Who are the relevant stakeholders? What are the interests of each stakeholder? What is the power of each stakeholder? How are coalitions likely to form? 1-20 10 2/10/2014 Stakeholder Analysis – Question 1 Who are the Relevant Stakeholders? Answer this question by drawing market and nonmarket stakeholder maps Recognize that not all of groups are relevant to every situation Examples: • Some businesses sell directly to the public and will not have retailers • A certain stakeholder may not be relevant to a particular decision/action 1-21 Stakeholder Analysis – Question 2 What are the interests of each stakeholder? Analyzing stakeholder inter...
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