INTRODUCTION TO

BUSINESS - LEVEL 3

Week 13
Managing Stakeholders
Week 13 – Overview
 What is the definition of a stakeholder ? – CLASS DISCUSSION
 Stakeholder Activities
 Organisation Stakeholders – CLASS ACTIVITY - Stakeholder Analysis Matrix Template

 Organisational Roles of Stakeholders

 Stakeholder Management
 Stakeholder Management Four Steps
 Formative Feedback of Assessment 2 – Individual Report
 Week 13

Definition of a Stakeholder
Stakeholders are individuals, groups or other S C US S ION:
I
CLASS D
organisations who have an interest, claim, or
a
stake in an organisation, in what it does, and What is ?
lder
Stakeho
in how well it performs (McGrath & Whitty, 2017).

CLASS
DISCUS
S ION:
Why a
re
import they
a nt t
busine o a
ss?
 Week 13

Stakeholder Activities
Generally, stakeholders are encouraged
to participate in an organisation if they
get incentives that exceed the value of
the contributions they make (Windsor, 2002).

Incentives are rewards such as money,

power, personal accomplishment, and
organisational status (Hatherly et al., 2020).

Contributions- include the skills, knowledge, and

expertise that organisations require of their members
during task performance (Zlygostev & Makarova, 2020).
 Week 13
Organisation Stakeholders
External Stakeholders
• Customers
Internal Stakeholders • Suppliers
• Employees • Government
• Managers • Unions
• Shareholders • Creditors

A C T IV ITY:
CLASS
Please go to the Seminar Activity in Week 13 to access the . . .
a b o u t w h at
Think r s yo u r
Stakeholder Analysis Matrix Template o ld e
stakeh g h t have?
s m i
busines
 Week 13
Organisational Roles of a Stakeholder
Decision Making
Key stakeholders have the power to disrupt decisions or
introduce new ideas to the company.

For example, the board of directors (stakeholders) has the

power to appoint all levels of senior management - including
the CEO - and remove them if necessary.

Direct Management
Stakeholders can take over certain departments - such as
human resources or research and development – to
micromanage the business and insure success.
 Week 13
Organisational Roles of a Stakeholder
Investors
Investors are stakeholders. They have the power and
influence to either increase or decrease their stakes in your
company according to your financial performance

Other types
• Corporate Conscience
• Other responsibilities
 Week 13
Stakeholder Management
a ke ho lder
St
What is ment ?
M a nage

“Stakeholder management is the systematic identification,

analysis, planning and implementation of actions designed to
engage with stakeholders.” (APM, 2020).

It is very important to manage stakeholders efficiently at

every stage of the company’s life cycle.
 Week 13
Stakeholder Management Four Steps
 Stakeholder Management Four Steps Week 13

Step 1 – Identifying Stakeholders

Stakeholders can be identified in a number of ways;

• Through research
• interviews
• brainstorming
• checklists
• lessons learned
• Focus of the business

A Stakeholder Map is used to indicate who the

stakeholders are and their interests / job.

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Stakeholder Management Four Steps Week 13

Stage 2: Assessing Stakeholders

Stakeholder Analysis is a systematic way to analyse stakeholders by their power and
interest. Analysing your Stakeholders is crucial to the
success of your business. Stakeholder Prioritisation is key . . .

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Stakeholder Management Four Steps Week 13

Stage 3: Develop Stakeholders

A stakeholder communications plan outlines who the organisation need to communicate
with, about what, how the organisation is going to do it, and how often. There are also a
few important considerations such as timing and budget.

An effective stakeholder communications plan will:

• Support the organisation in achieving its stated goals and objectives.

• Support or improve the organisation’s operational effectiveness.
• Support or improve the organisation’s relationships with those who are important to
ensuring its success (often called key stakeholders or your target audience).
• Deliver measurable results to the organisation.

Developing a Stakeholder Communication Plan using these objectives is next.

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 Week 13
Stage 3: Develop Stakeholders

The Communication Plan can be presented based on the following . . .

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Stakeholder Management Four Steps Week 13

Stage 4: Engage & Influence Stakeholders

Encouraging stakeholder participation in the decision-making process by . . .

• Providing timely information

• Open, and honest communication
• Listening to stakeholder concerns
• Respecting diverse opinions
• Seeking mutually beneficial solutions
• Learning from each other

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 Week 13
Formative Feedback for Assessment 2 – Individual
Report

• Review your current draft with your tutor and receive feedback.

• Submit your latest draft.

• Ensure your Learning Outcomes have been met.

• Ensure your grammar and report structure is academic.

• Overview your references and the method of your referencing.

• Ensure that you take full advantage of all available resources to receive a
good grade.

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Revision outline of Assessment 2 – Individual Report Week 13
Outline of Assessment 2 – Individual Report Please
re
• Weighting: 60% MSG an ad through t
d he
• Type of Assessment: Report Assessm the Detailed
• Word Count or Equivalent: 1,800 ent Gu
ide
• Learning Outcome: LO1, LO4
• Formative Submission deadline Week 12
• Summative Submission Deadline Week 14
The Task
1) Choose a Start-Up business of your choice (Sole trader, partnership, private limited
company etc.)

2) Think about how to make that business functional.

3) Identify the type of business (start-up) it will be.

4) Gather the necessary internal and external information for accurate planning, decision
making and control of resources.

5) Use Business Models and Theories such as PESTLE and Porter’s Five Forces to analyse
key factors (at least 3) that influence / support your organisation’s business decisions.
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References used for Week 13
APM (2020) APM Body Of Knowledge, What is stakeholder
engagement? [Online] Available at:
https://www.apm.org.uk/resources/find-a-resource/sta
keholder-engagement/
(Accessed: 07-01-22)
Hatherly, D., Mitchell, R. K., Mitchell, J. R., & Lee, J. H.
(2020). Reimagining profits and stakeholder capital to
address tensions among stakeholders. Business &
Society, 59(2), 322-350.

McGrath, S. K., & Whitty, S. J. (2017). Stakeholder

defined. International Journal of Managing Projects in
Business.

Windsor, D. (2002). Stakeholder responsibilities: lessons

for managers. Journal of Corporate Citizenship, (6), 19-35.

Zlygostev, A., & Makarova, E. (2020). Modeling the

stakeholder value and stakeholder risks. In SHS Web of
Conferences (Vol. 89). EDP Sciences.
 End of Week 13
Remember to make use of the Assessment 2
Templates, Resources, Tutor Feedback and
Recommended Reading Lists.
Well done for delivering your Group Presentations.
Now, continue that great effort with Assessment 2 – Individual Report.