Chapter two

Strategy Formulation

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 Stakeholder Theory
Stakeholders are;
• Groups or individuals that have an interest in the
well-being of the company and/or are affected by
the goals, operations or activities of the
organization or the behavior of its members.
• They have a ‘stake’ in what the organization does.
• It is important to consider stakeholder theory in
environmental scanning (internal as well as
external)

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 Stakeholder Theory
Stakeholders can be broadly categorized into:

• Internal stakeholders–employees,
management
• Connected stakeholders– customers,
suppliers, competitors
• External stakeholders – government, pressure
groups

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Environmental scanning

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Can be undertaken through different techniques
among which Industry analysis and Competitor
analysis will be discussed
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