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Stakeholder expectations - Coggle Diagram
Stakeholder expectations
Members
In return for investing funds in ordinary shares they will obtain a voting right and the right to participation in any dividend or further share issue, together with the potential capital increase in the value of their share should they choose to sell it
Employees
In return for the input of their time, experience, knowledge and labour they will expect appropriate remuneration to be paid as agreed under their employment contract, together with safe working conditions, other potential workplace benefits, continuity of employment and when appropriate the opportunity for progression
Suppliers and customers
In return for providing reliable supplies to the business, suppliers will expect payment in accordance with agreed terms of their contract and have the potential for repeat orders and a continuity of supply
In return for their purchase of products or services from the business, customers will expect satisfaction of their perceived expectations through the ability to consume or resell a safe and reliable product or service in line with consumer law
Banks and other providers of finance together with other contributors to the operation of a business, would also fall under this 'supply chain' category - in each case there will be an input from the stakeholder with an expected return of some sort in lines with the contract agreed for the provision of finance
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Johnson (2017) suggested that the two core dynamics are the ability to disrupt and the levels of interest that the stakeholder would take in its 'stake'
Low power to disrupt the business with a low interest in the business = minimal effort required by the organisation
Low power to disturb the business with high interest in the business = stakeholders must be kept informed
High power to disrupt the business with low interest in the business = stakeholders must be kept satisfied
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The strategic journey of an organisation can be significantly influenced by the forces of stakeholders and others, this is often referred to as the politics of power
In any organisation, as time evolves, the power balance is likely to shift. In a fast moving organisation with many demanding stakeholders, this could mean frequent changes of strategic focus which can lead to disruption and chaos
When undertaking a stakeholder mapping exercise, it is useful to look at and understand the origin and indicators of the differing powers that might be at play
Position
Autocracy, right and ability to influence behaviour (eg seniority)
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At the traditional end of the dynamic it is much harder for a stakeholder to influence the strategic direction of an organisation which is probably focused around a rational strategic approach
In a more empowered organisation, there is more likely to be an emergent and collective approach to strategic development and therefore a greater ability for stakeholder influence
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