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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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Presentation on theme: "From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Stakeholders stakeholder expectations and organisational purposes."— Presentation transcript:

1 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Stakeholders stakeholder expectations and organisational purposes

2 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Objectives  Students are to be able to evaluate the power and levels of a variety of pertinent stakeholders of organisations.  Students are to be able to evaluate the interest levels of a variety of pertinent stakeholders of organisations.  Students are to be able to use their evaluation of the power and interest levels of a variety of pertinent stakeholders of organisations, to show how strategies can impact upon and be impacted upon by a variety of stakeholder groups.  Students are able to show how management styles play a role in stakeholdering.

3 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Strategic analysis Strategic choice Strategy implementation Exhibit 1.4 A summary model of the elements of strategic management Expectations and purposes Organisation structure and design Managing strategic change Resource allocation and control Strategic options Bases of strategic choice Strategy evaluation and selection Resources, competences and capability The environment

4 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Organisational purposes Mission Objectives Exhibit 5.1 Influences on organisational purposes Corporate governance Whom should the organisation serve? How should purposes be determined? Business ethics Which purposes should be prioritised? Why? Cultural context Which purposes are prioritised? Why? Stakeholders Whom does the organisation serve?

5 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 STAKEHOLDERS “Those who depend on the organisation for the realisation of some of their goals and in turn the organisation depends on them for the full realisation of its goals” Customers Competitors Government Suppliers The community Employees Lenders

6 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 CORPORATE GOVERNANCE AND STAKEHOLDERS  Shareholders  widespread or close?  institutional intermediaries?  bankers?  cross-shareholding?  Employees  Co-determination, shareholders or employees?  Lenders  partners or “contractors”?  Customers  Caveat Emptor, market pressure or regulation?

7 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 (a) Within organisations  Hierarchy (formal power), e.g. autocratic decision making  Influence (informal power), e.g. charismatic leadership  Control of strategic resources, e.g. strategic products  Possession of knowledge and skills, e.g. computer specialists  Control of the environment, e.g. negotiating skills  Involvement in strategy implementation, e.g. by exercising discretion (b) For external stakeholders  Control of strategic resources e.g. materials, labour, money  Involvement in strategy  implementation, e.g. distribution outlets, agents  Possession of knowledge (skills), e.g. subcontractors  Through internal links, e.g. informal influence Exhibit 5.6a Sources of power

8 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 (a) Within organisations  Status  Claim on resources  Representation  Symbols (b) For external stakeholders  Status  Resource dependence  Negotiating arrangements  Symbols Exhibit 5.6b Indicators of power

9 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999  Growth vs profitability  Short term vs investment  Control vs professional managers  Ownership vs funding  Ownership vs accountability  Efficiency vs jobs  Mass appeal vs quality Exhibit 5.3 Some common conflicts of expectations

10 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Exhibit 5.5 Stakeholder mapping: the power/interest matrix Source: Adapted from A. Mendelow, Proceedings of the Second International Conference on Information Systems, Cambridge, MA, 1991 LEVEL OF INTEREST POWER

11 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 STAKEHOLDER MAPPING - SOME GUIDELINES  Positioning related to specific strategies  Stakeholders may need to be sub-divided  Distinguish the role for the individual  Identify “political” priorities by:  plot how stakeholders would line up  plot how stakeholders would need to line up  identify mismatches  include key maintenance activities

12 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 STAKEHOLDER MAPPING - ‘test’ questions Power “If I were to pursue this strategy with disregard to the views of this stakeholder could they stop me?” Interest “How high is this strategy in their priorities - are they likely to actively support or oppose this strategy?”

13 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 STAKEHOLDER MAPPING - typical maps

14 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Management Styles We need to consider how management styles differ when dealing with each stakeholder group

15 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Power Stakeholders and management styles Level of interest

16 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 STYLEMEANS/CONTEXTBENEFITSPROBLEMSCIRCUMSTANCES OF EFFECTIVENESS Education andGroup briefings assumeOvercoming lack of Time consuming communicationinternalisation of strategic(or mis)information Direction or progress logic and trust of topmay be unclear management Collaboration/Involvement in setting the Increasing ownership Time consuming participationstrategy agenda and/or of a decision or Solutions/outcome resolving strategic issues process May improve within existing by taskforces or groups quality of decisions paradigm Intervention Change agent retains Process is Risk of perceived Incremental or non-crisis co-ordination/control guided/controlled manipulation transformational change delegates elements of but involvement changetakes place Direction Use of authority to set Clarity and speed Risk of lack of Transformational change direction and means of acceptance and ill- change conceived strategy Coercion/edict Explicit use of power May be successful in Least successful Crisis, rapid through edict crises or state of unless crisis transformational change confusion or change in established autocratic cultures Incremental change or long-time horizontal transformational change Exhibit 11.6 Styles of managing strategic change

17 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 Activity  Read Johnson & Scholes (1999) section of the text and illustration 5.4 for practical advice on how to undertake a stakeholder mapping. AND  Carry out a stakeholder mapping exercise for the Granada buy out of Forte Hotels. Support this with researched evidence (newspaper articles, journal articles, web searches etc.) Bring it to the seminar for discussion. OR  Read the Sheffield Theatres Trust case study on page , Johnson & Scholes, 1999, Exploring Corporate Strategy 5th Ed. And carry out a stakeholder mapping exercise. OR  Carry out a stakeholder mapping exercise for an hospitality/tourism organisation and strategy/scenario of your choice. Support this with researched evidence (newspaper articles, journal articles, web searches etc.) Bring it to the seminar for discussion.

18 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 MORETON UNIVERSITY A case study

19 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 LowHigh Low High POWER LEVEL OF INTEREST A Students D Director C (-) Vice Chancellor (0) Chairman (-) B Director A (+) Competitor X (-) Principal F (-) C Funding Body Director E Director S COMPUTER SERVICES - ‘monopolist’ strategy Map A - current situation (1998)

20 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 LowHigh Low High POWER LEVEL OF INTEREST A Students D Director A (+) Director S (+) Director C (-) Vice Chancellor (+) B Competitor X (-) Principal F (0) C Funding Body Director E Chairman COMPUTER SERVICES - ‘monopolist’ strategy Map B - the preferred situation

21 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 MORETON UNIVERSITY - political priorities (monopolist strategy)  Dilute power of Director ‘C’  Lobby Directors ‘E’ and ‘S’ to increase interest  Director ‘A’ now on Governing Body  Inform Chairman of difficulties elsewhere  Improve service to colleges - silence Principal ‘F’

22 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 MORETON UNIVERSITY - assessment of power

23 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Political Battleground

24 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Dream Ticket + + +

25 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Potential Lost Cause - - -

26 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Lone Champion +

27 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Dogged Opponent __

28 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Political Trap ? ? ?

29 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Worthy Cause + + +

30 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Political Timebomb - - -

31 From: Gerry Johnson and Kevan Scholes Exploring Corporate Strategy 5th Edition 1999 The Autocrat’s Dream ? ? ?


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