Assignment on Stakeholders

1. Who are Stakeholders of a Company?

A stakeholder is any individual or organization who has a vested interest in the activities and
decision making of a business
Have an interest in the business -but do not own it.

2. What are their expectations from a Company?

Stake holders have different expectation during the business recovery phase such as:

1. Employees - They want all their pending salaries to be cleared by the company.
2. Customers - They want their brand back, to be available in the market place
which fulfills their expectations.
3. Money lenders: They want their money back with Interest accrued as on date.
4. Shareholders: They want higher dividend to be paid by the company.
5. Business Firms: They want to earn profit during business recovery phase.

The other expectations are as follows -

 Profit
 Evolve strategies as market change
 Transparency
 High reputation and brand image
 Proper checks and balances and management controls in place
 Socially and environmentally responsible

3. How are their interests different? Mention conflicting interests of stakeholders.

Different stakeholders have different objectives. The interests of different stakeholder

groups can conflict. For example:
 owners generally seek high profits and so may be reluctant to see the business pay high
wages to staff
 A business decision to move production overseas may reduce staff costs. It will therefore
benefit owners but work against the interests of existing staff who will lose their jobs.
Customers also suffer if they receive a poorer service
 managers may want to pay for goods later to improve cash flow whereas the suppliers
will want their payment as soon as possible
 managers want the highest profit possible on sales whereas customers want low prices
for high quality goods

4. How should a Company balance / manage their conflicting interests?

Divide the stakeholders in terms of power and interest and take on the issue and resolve
accordingly

 High-power, highly interested people (Manage Closely): These people have great

interest in your work and the power to help you succeed. It’s critical to fully engage these
people and make sure they’re satisfied. Pay attention to their input and implement their
ideas when possible. Keep them in the loop when someone else’s ideas are chosen and let
them know why.
 High-power, less interested people (Keep Satisfied): These people have little
involvement or vested interest in your work, but are very powerful. Do your best to keep
them satisfied, but don’t take up too much of their time. Seek their insights around big
decisions and make sure they understand how your work will positively affect them.
These folks make powerful champions once you win them over.
 Low-power, highly interested people (Keep Informed): These people are passionate
about the project and voice their support to others, but have little power or influence.
Keep them in the loop and inform them of any major developments. Your work may
directly impact these people, so they are usually more than willing to roll up their sleeves
and help you out.
 Low-power, less interested people (Monitor): The most apathetic of the bunch, these
people are the least affected by your work and should take up little time and attention.
Don’t ruffle their feathers and they’ll stay out of your way.

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