Strategic purpose and Stakeholder mapping are a vital part of management. Combination of the two enables study the threats and opportunities to the company and establish ways that can be implemented to tackle the same. Stakeholder conflicts are a common phenomenon in the operations of the firm, and as such, mapping methods such as Mendelow's matrix are essential in knowing how best to tackle which category of stakeholder. With the help of the pattern, companies such as Ocado and PayPal have handled different situations and have learned what to consider from the expectations of their stakeholders. Thus, mapping of interested parties in business is a worthwhile decision to steer company strategies.
Table of Contents
- Introduction
- Stakeholder Impact on the Company
- Governance and Social Responsibility
- Employees
- Business Partners
- Stakeholders' Conflicts
Objectives and Key Themes
This paper investigates the concept of stakeholder management and its impact on a company's success. It explores how various stakeholders, including governance bodies, employees, business partners, and the community, influence a company's operations and strategies. The paper also examines the potential conflicts that can arise between stakeholders and the use of tools like Mendelow's Matrix to understand and manage these conflicts.
- The importance of stakeholder engagement in modern business
- The influence of various stakeholder groups on company operations and strategies
- The challenges of stakeholder conflicts and the use of tools like Mendelow's Matrix to manage them
- The impact of stakeholder pressure on company strategy and social responsibility
- The phenomenon of strategic drift and how stakeholder influence can impact initial strategies
Chapter Summaries
- Introduction: This chapter introduces the concept of stakeholders and their importance in business, drawing upon Freeman's 1984 work. It highlights the increasing influence of stakeholders on company operations and the need for effective stakeholder management.
- Stakeholder Impact on the Company: This section breaks down the key stakeholder groups: governance, employees, business partners, and the community. It discusses how each group impacts the company at different levels of engagement.
- Governance and Social Responsibility: This sub-chapter focuses on the role of governance in shaping company purpose and its evolution from solely profitability to incorporating social responsibility.
- Employees: This sub-chapter highlights the impact of employees on a company's success, emphasizing the need for employee welfare and its influence on profitability.
- Business Partners: This sub-chapter examines the role of business partners in enhancing business processes and the importance of managing relationships with them for business continuity.
- Stakeholders' Conflicts: This section explores the common conflicts that arise between stakeholders and the company. It introduces Mendelow's Matrix as a strategic tool for understanding and managing stakeholder conflicts, demonstrating its application through examples such as Ocado and PayPal.
Keywords
Key concepts explored in this paper include stakeholder management, stakeholder engagement, stakeholder conflicts, corporate social responsibility, strategic drift, Mendelow's Matrix, governance, employees, business partners, and the community. The paper analyzes the impact of these stakeholders on company operations and strategies, focusing on conflict resolution and strategic decision-making.
Frequently Asked Questions
What is the purpose of Stakeholder Mapping?
Stakeholder mapping helps management identify key interested parties, analyze their influence, and establish strategies to handle threats and opportunities.
What is Mendelow's Matrix?
It is a management tool used to categorize stakeholders based on their power and interest, helping companies decide how to prioritize communication and engagement.
How do employees affect a company's strategic purpose?
Employees significantly impact success through their productivity and welfare, influencing the company's overall profitability and social responsibility goals.
What are common examples of stakeholder conflicts?
Conflicts often arise between profitability (shareholders) and social responsibility or employee welfare, as seen in cases involving companies like PayPal or Ocado.
What is "strategic drift"?
Strategic drift occurs when a company's strategy fails to keep pace with changing stakeholder expectations or environmental shifts, potentially leading to a loss of competitiveness.
- Quote paper
- Dr. Amos Wesonga (Author), 2015, Strategic-Purpose: Stakeholder-Mapping, Munich, GRIN Verlag, https://www.grin.com/document/439092
