6 Stakeholders

5/19/2018 6 Stakeholders

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From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999

Stakeholders

stakeholder expectations and organisational

purposes


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Objectives

Students are to be able to evaluate the power andlevels of a variety of pertinent staeholders of

or!anisations"

Students are to be able to evaluate the interest levels

of a variety of pertinent staeholders of or!anisations" Students are to be able to use their evaluation of the

power and interest levels of a variety of pertinent

staeholders of or!anisations# to show how strate!ies

can impact upon and be impacted upon by a varietyof staeholder !roups"

Students are able to show how mana!ement styles

play a role in staeholderin!"


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Strategic

analysis

Strategic

choice

Strategy

implementation

Exhibit 1.4 A summary model of the elements of strategic management

E$pectations

and purposes

%r!anisation

structure and

desi!n

&ana!in!

strate!ic

chan!e

'esourceallocation and

control

Strate!ic

options

(ases

of strate!ic

choice

Strate!y

evaluation and

selection

'esources#

competences

and capability

)he

environment


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Organisational purposes* &ission* %b+ectives

Exhibit .1 !nfluences on organisational purposes

"orporate governance* ,hom shouldthe

or!anisation serve-* .ow should purposes be

determined-

#usiness ethics

* ,hich purposes shouldbe prioritised-* ,hy-

"ultural context* ,hich purposes are

prioritised-* ,hy-

Stakeholders* ,hom doesthe

or!anisation serve-


5/31From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999

S$A%E&O'(E)S

/)hose who depend on the or!anisation for therealisation of some of their !oals and in turn the

or!anisation depends on them for the full realisation

of its !oals0

*ustomers*ompetitors*Government*Suppliers*)he community*Employees*2enders



"O)*O)A$E +O,E)-A-"E A-(

S$A%E&O'(E)S Shareholders

widespread or close-

institutional intermediaries-

baners-

cross3shareholdin!-

Employees o3determination# shareholders or employees-

2enders partners or /contractors0-

ustomers Caveat Emptor# maret pressure or re!ulation-



a/ 0ithin organisations

.ierarchy 4formal power#e"!" autocratic decision main!

6nfluence 4informal power#

e"!" charismatic leadership

ontrol of strate!ic resources#

e"!" strate!ic products

7ossession of nowled!e and sills#

e"!" computer specialists

ontrol of the environment#

e"!" ne!otiatin! sills

6nvolvement in strate!y

implementation#e"!" by e$ercisin! discretion

b/ or external stakeholders

ontrol of strate!ic resourcese"!" materials# labour# money

6nvolvement in strate!y

implementation#

e"!" distribution outlets# a!ents

7ossession of nowled!e 4sills#

e"!" subcontractors

)hrou!h internal lins#

e"!" informal influence

Exhibit .2a Sources of po3er



a/ 0ithin organisations

Status

laim on resources

'epresentation Symbols

b/ or external stakeholders

Status

'esource dependence

8e!otiatin! arran!ements Symbols

Exhibit .2b !ndicators of po3er



Growth vs profitability

Short term vs investment

ontrol vs professional mana!ers

%wnership vs fundin!

%wnership vs accountability

Efficiency vs +obs

&ass appeal vs uality

Exhibit . Some common conflicts of expectations



Exhibit . Stakeholder mapping5 the po3er6interest matrixSource: dapted from " &endelow# Proceedings of the Second International Conference on Information Systems# ambrid!e# 1991

2ow .i!h

2ow

A

&inimaleffort

#

Keepinformed

.i!h

"

Keep

satisfied

(

Key

players

'E,E' O !-$E)ES$

*O0E)



S$A%E&O'(E) 7A**!-+

8 SO7E +9!(E'!-ES 7ositionin! related to specific strategies

Staeholders may need to be sub-divided

;istin!uish the rolefor the individual 6dentify /political0 priorities by:

plot how staeholders wouldline up

plot how staeholders would needto line up

identify mismatches include ey maintenance activities



S$A%E&O'(E) 7A**!-+

8 :test;



S$A%E&O'(E) 7A**!-+8 typical maps

$ypical 7ap (angers *riorities

Battleground



7anagement Styles

,e need to consider how mana!ement styles

differ when dealin! with each staeholder

!roup



2ow .i!h

2ow

;irection>edict style

'e!ular !eneral

communication

Symbolic si!nallin!

;irection education style

'e!ular !eneral

communication

Symbolic si!nallin!

.i!h

Education>intervention style

7ersonal memoin!

Face to face

7articipation>intervention

style

Face to facecommunication

*o3er

Stakeholders and management styles

'evel of interest



S$='E 7EA-S6"O-$E>$ #E-E!$S *)O#'E7S "!)"97S$A-"ES O

EE"$!,E-ESS

Education and Group briefin!s assume %vercomin! lac of )ime consumin!

communication internalisation of strate!ic 4or misinformation ;irection or pro!ress

lo!ic and trust of top may be unclear

mana!ement

Collaboration' 6nvolvement in settin! the 6ncreasin! ownership )ime consumin!

participation strate!y a!enda and>or of a decision or Solutions>outcome

resolvin! strate!ic issues process &ay improve within e$istin!

by tasforces or !roups uality of decisions paradi!m

Intervention han!e a!ent retains 7rocess is 'is of perceived 6ncremental or non3crisis

co3ordination>control !uided>controlled manipulation transformational chan!e

dele!ates elements of but involvement

chan!e taes place

Direction ?se of authority to set larity and speed 'is of lac of )ransformational chan!e

direction and means of acceptance and ill3

chan!e conceived strate!y

Coercion'edict E$plicit use of power &ay be successful in 2east successful risis# rapid

throu!h edict crises or state of unless crisis transformational chan!econfusion or chan!e in established

autocratic cultures

6ncremental chan!e or

lon!3time hori@ontal

transformational chan!e

Exhibit 11.2 Styles of managing strategic change



Activity 'ead Johnson A Scholes 41999 section 5"B"C of the te$t and illustration

5"D for practical advice on how to undertae a staeholder mappin!"8;

arry out a staeholder mappin! e$ercise for the Granada buy out of

Forte .otels" Support this with researched evidence 4newspaper

articles# +ournal articles# web searches etc" (rin! it to the seminar for

discussion"

%'

'ead the Sheffield )heatres )rust case study on pa!e 3HD# Johnson

A Scholes# 1999# E$plorin! orporate Strate!y 5th Ed" nd carry out a

staeholder mappin! e$ercise"

%'

arry out a staeholder mappin! e$ercise for an hospitality>tourismor!anisation and strate!y>scenario of your choice" Support this with

researched evidence 4newspaper articles# +ournal articles# web

searches etc" (rin! it to the seminar for discussion"



7O)E$O- 9-!,E)S!$=

case study



'o3 &igh

'o3

&igh

7%,E'

2EIE2 %F 68)E'ES)

A

Students

(

;irector 8/Iice hancellor ?/

hairman 8/

#;irector @/

ompetitor 8/7rincipal F8/

"

Fundin! (ody;irector E

;irector S

"O7*9$E) SE),!"ES 8 :monopolist; strategy7ap A 8 current situation 1B/



'o3 &igh

'o3

&igh

7%,E'

2EIE2 %F 68)E'ES)

A

Students

(;irector @/

;irector S @/;irector 8/Iice hancellor @/

#ompetitor 8/

7rincipal F?/

"

Fundin! (ody;irector E

hairman

"O7*9$E) SE),!"ES 8 :monopolist; strategy7ap # 8 the preferred situation



7O)E$O- 9-!,E)S!$=

8 political priorities monopolist strategy/ ;ilute power of ;irector



7O)E$O- 9-!,E)S!$=

8 assessment of po3er

!-$E)-A' S$A%E&O'(E)S

!ndicator (irector A (irector " (irector S "hairman

Status . . . .

'esources 2 . & 8>a

'epresentation

2 2 2 .

Symbols & . & .

E>$E)-A' S$A%E&O'(E)S

!ndicator 1unding

#ody

*rincipal 1 Students

Status . & 2

'esource

levera!e

. 2 &

8e!otiation . 2 2

Symbols . & 2


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$he *olitical #attleground

+ + + - - -


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$he (ream $icket

+ + + + + +


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$he *otential 'ost "ause

- - -

- - -


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$he 'one "hampion

+


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$he (ogged Opponent

__


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$he *olitical $rap

? ? ?

? ? ?


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$he 0orthy "ause

+ + +

+ + +


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$he *olitical $imebomb

- - -

- - -


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$he Autocrat;s (ream

? ? ?

? ? ?

Documents

6 Stakeholders