Presentation Transcript

1. Stakeholders

   DyalaRousan Part1B
2. What are Stakeholders? Stakeholders are groups of people who have an interest in a business organization. There are two types of stakeholders: Internal Stakeholders External Stakeholders
3. List of Stakeholders
4. Types of Stakeholder I = Internal E = External Owners (I) Shareholders (I) Managers (I) Staff or employees (I) Customers (E) Suppliers (E) Community (E) Government (E)
5. Internal and External Stakeholders Internal stakeholders are those who are ‘members’ of the business organization. Owners and shareholders Managers Staff and employees External stakeholders are not part of the firm Each Stakeholder has a different interest in the company.
6. Characteristics of Stakeholders 1. Owners and Shareholders The number of owners and the roles they carry out differ according to the size of the firm In small businesses there may be only one owner (sole trader) or perhaps a small number of partners (partnership) In large firms there are often thousands of shareholders, who each own a small part of the business
7. Characteristics of Stakeholders 2. Managers: organise make decisions plan control are accountable to the owner(s)
8. Characteristics of Stakeholders 3. Employees or Staff: A business needs staff or employees to carry out its activities Employees agree to work a certain number of hours in return for a wage or salary Pay levels vary with skills, qualifications, age, location, types of work and industry and other factors
9. Characteristics of Stakeholders 4. Customers: Customers buy the goods or services produced by firms They may be individuals or other businesses Firms must understand and meet the needs of their customers, otherwise they will fail to make a profit or, indeed, survive
10. Characteristics of Stakeholders 5. Suppliers: Firms get the resources they need to produce goods and services from suppliers Businesses should have effective relationships with their suppliers in order to get quality resources at reasonable prices This is a two-way process, as suppliers depend on the firms they supply
11. Characteristics of Stakeholders 6. Community: Firms and the communities they exist in are also in a two-way relationship The local community may often provide many of the firm’s staff and customers The business often supplies goods and services vital to the local area
12. Characteristics of Stakeholders 7. Government: Economic policies affect firms’ costs (through taxation and interest rates) Legislation regulates what business can do in areas such as the environment and occupational safety and health Successful firms are good for governments as they create wealth and employment
13. Stakeholders and their objectives
14. Stakeholders and their objectives
15. Stakeholders and their objectives
16. Pluralistic-Perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups - management and trade unions. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal. The pluralist perspective is where people coordinate with groups of people instead of individuals.  The pluralist perspective takes into account that there are groups of people which have a common goal but which may be different than that of the company which they work for.  The employees or labourers may want to get more from their employers and the employers want to give them less. Example: Construction companies in Chicago will have to coordinate with trade unions to solicit plumbers or labourers for a project.
17. Mission and Vision Statements
18. Vision Statement Example
19. Mission and Vision Statements
20. Which organisations do you think each of these statements belong to? To bring inspiration and innovation to every athlete in the world. To help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible. To ensure the ability of the earth to nurture life in all its diversity. To be the most innovative and distinctive broadcaster in the UK, to provide effective competition to the BBC, to engage and challenge audiences .
21. Mission statement – Levi Strauss People love our clothes and trust our company. We will market the most appealing and widely worn casual clothing in the world. We will clothe the world.
22. Vision vs. Mission The vision is more broad and future oriented – the goal on the horizon The mission is more focused – how you will get to the horizon
23. Are there any benefits of having a good mission statement? It focuses your energy and clarifies your purpose. You have to really define what you are going to do. Should motivate board, staff, volunteers, and donors. It also helps attract people and resources.  It will be a great public relations tool.
24. Five characteristics of a good mission statement Contains a formulation of objectives that enables progress towards them to be measured Differentiates the business from its competitions Defines the markets or business in which the firm wants to operate Is relevant to all major stakeholders - not just shareholders and managers Excites, inspires, motivates & guides
25. Other characteristics of a good mission statement Realistic and achievable Based on consultation Supported by senior management Brief in length A very general statement Flexible-should be able to accommodate change Business specific and distinctive
26. Corporate mission objective A clear statement of what needs to be achieved A focus for all activity Targets for individual and group achievement A means of measuring performance