1. 1.5.2 The Role of Stakeholder Groups

2. Learning Outcomes
To understand the main internal and external stakeholder groups
To understand the main objectives of each group
To be able to evaluate how these objectives may cause conflict between stakeholder groups

3. Stakeholders
People with an interest in the success of a business

4. Who are the Stakeholders of BSM?
Who are internal?
Who are external?

5. Stakeholders in general – suggested answers
Internal
External
Employees
Managers
Owners
Customers
Suppliers
Shareholders
Bank (and other lenders)
Local residents
The government
Environmental pressure groups
etc.

6. External Stakeholders Internal Stakeholders
Suppliers Customers
Competitors Special Interest Groups
Local Community
Internal Stakeholders
Employees
Shareholders
Managers
Government
Lenders
Media

7. Stakeholder objectives
Stakeholders
Stakeholder objectives

8. Stakeholder objectives examples – group discussion
For the following stakeholder groups discuss their objectives (hopes) for a business:
Owners/shareholders
Managers
Employees
Suppliers
Pressure groups
Local residents
value for money
good service
quality
e.g. Customers

9. Stakeholder objectives objectives might include:
Customers: value for money, good service, quality
Owners/shareholders: satisficing/maximising return on investment
Managers: status, performance bonuses
Employees: high wages, conditions of work
Suppliers: to sell a lot at a high price, repeat orders, customer loyalty
Pressure groups: to force a reduction of environmental impact
Local residents: Employment, no pollution, putting something into the local community

10. Stakeholders
Stakeholder conflict

11. Reflect Looking back at the different stakeholder objectives:
Will all stakeholders be happy?
Could there be conflict?
Between Whom?
Why?
How can it be resolved/minimised?

12. Stakeholder Task - Group
Fill in the sheet about the 8 different stakeholder groups
Who are you? – Definition
What do you want? (Top 3 wants)
What will happen if your needs are not met?

13. Meeting Stakeholder needs
Look at your filled in sheets
Which stakeholder groups are likely to have interests that ‘conflict’
Is it possible to keep all stakeholders happy all of the time?
Which stakeholder group is the most important?

14. Stakeholder conflict Owner v customer: Profit v service
e.g. conflict over opening hours
Shareholder v worker: Profits v high wages
Owner v management: “Divorce between ownership (profits) and control”
i.e. The owners have little power
Employer v employee
Employees see their hard work reflected in higher profits for the employer
Employers look for greater efficiency – more output for lower costs

15. Video
Watch the video ‘Stakeholder conflicts’

16. Apply your understanding to:
Stakeholders
Final task –
Apply your understanding to:
The Dyson debate – to move or not to move Shell – Managing stakeholders case study