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G2 - [ABS-4] Stakeholders Strategy (Key Stakeholders (Stakeholder Issue…
G2 - [ABS-4] Stakeholders Strategy
Stakeholder Strategy
attempting to align stakeholder interests is the most effective strategy
a competitive stakeholder strategy creates value for all stakeholders and align with the organization's value and capabilities
the purpose of a business is not simply to generate financial returns for its capital investment , but also to create value for a variety of parties(employees, customers)
need to find and occupy the valuable competive position
business organization
a set of relationships between these different stakeholders
Key Stakeholders
Investors
financial return
Employees
good pay, job security
Customers
the relationship between price and value provided by the firms
Suppliers
opportunities and reliability to grow business with each other
Community
catch all above↑
Stakeholder Impact Matrix
Create values from a number of perspective to plan a startegy
Stakeholder Issue Matrix
Knowing the demand of the parties is very important
every issues matter to each stakeholders
Secondary Stakeholders
Parties
Special interest groups
Governments
NGOs
.etc
Source of Institutional Pressure
normative conflict
essentially a societies accepted, established beliefs about the way things ought to happen
distributional conflict
Common Goods
those resources to which everyone has free access, and more for one consumer means less for others
Market Power
the ability to price above
competitive levels
Negative Externalities
costs imposed on one stakeholder by the actions of a second without compensation
Information Asymmetries
one party knows more than another
Institutional (Non-Market) Strategies
to respond to or preempt and deal with those kinds of pressures
Conclusion
Value comes from interact with stakeholders
Value creation involves values
firms should treat stakeholders as partners
benefit and understand each other well