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Stakeholder Analysis

The identity of stakeholders

Stakeholder is an individual or group who have an interest in the activities of an


organisation.

Stakeholders:

Internal Connected /Mixed External


- Employees - Customers - The government
- Management - Minority shareholder - Persuasive groups
- Owners/ founders - Banks /lenders - Community
- Controlling shareholders - Suppliers - Regulatory bodies
- Contract workers - Trade unions
- Outsourced workers

Stages of Stakeholder Analysis:

1. Identify all the stakeholders


2. Identify their interest, values and concerns
3. Identify sources of stakeholder power
4. Identify what claims they can make on the organisation
5. Distinguish the most important stakeholders from the organisations perspective
6. Map the relationship between them – Mendelow Matrix
7. Identify the resultant strategic challenges imposed on the organisation by
stakeholder influence

Sources of power

Power is the potential ability of an individual or group to exert an influence on others, to


persuade them into following a particular course of action. Power comes from number of
sources viz.:

• Positional power – this arises because of an individual’s position in an organisational


hierarchy.

E.g. Power vested with CEO

• Resource power– This arises as an individual possess control over resources.


E.g. Treasury

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