1. INTRODUCTION: The objective of this lesson is to acquaint learners with the roles of the ‘STAKEHOLDERS’ in the business environment. The typical high street business here is Tescos’ Direct.

2. LEARNING OUTCOMES. to describe and explain the meaning of ‘stakeholders’ for any organisation E.G Tesco Plc. -explain how the concept of ‘stakeholders’ relates to objectives of the organisation. -establish the purpose of Stakeholder Analysis -highlight some common forms of Stakeholder Analysis Stakeholder Mapping techniques

3. What do you understand by ‘The Stakeholders? Any person or organisation who can be positively or negatively impacted by, or cause an impact on the actions of a company. (Freeman, 1984)

4. Other Definitions: The individuals and constituencies that contribute, either voluntarily or involuntarily, to the wealth- creating capacity and activities of an organisation; and are therefore its potential beneficiaries and / or risk bearers. (Post, Preston & Sachs, 2002).

5. Other Definitions continue Stakeholders refer to everyone who is directly or indirectly affected by the activities of the organisations. These range from -Employees Shareholders Suppliers, Customers, Local Authorities, National Government, Competitors, Supply-chains or Agencies etc.

6. Stakeholders’ Theory The concept of stakeholders has gained a great importance as elements of strategic concern due to the increasing steps that an organisation is taking in order to meet their social responsibilities.

7. Stakeholders’ Theory continues From Shareholders’ perspective, the objective of any commercial business is to enhance growth through resources utilization and, perhaps profits making for its shareholders..

8. Companies are networks of parties working towards shared goals. Employees, suppliers, shareholders, external interest groups and customers, co-operate to create mutually beneficial results for the (Stakeholders’ value perspective).

9. Tesco’s Stakeholder Analysis Why the need for the Stakeholders Analysis?’’ It enables companies e.g. Tescos’ to:- - Identify the stakeholders that are likely to be affected or influenced by their own business activities. -Assess how those stakeholders could be impacted or impact upon the organisation’s goals.- -

10. Anticipate the consequences of any change in the Tesco’s activities. -Identify stakeholders’ ‘success criteria’ Assure a successful outcome for the organisation by developing co-operation with stakeholders (Customer Focus)

11. Expectations (Stakes) of The Stakeholders at Tescos’. Organisations like Tesco’s who have outlets on the high streets –Tesco’s Direct are faced with different responsibilities in meeting the expectations of their Stakeholders just as they impact differently towards the growth of Tesco’s.

12. From Suppliers to Shareholders Suppliers:- Have strong bargaining power as they are able to exert their powers on other participants within an industry by raising prices or reducing the qualities of purchases. A supplier is powerful if the industry is dominated by a few companies.

13. Stockholders holders: may be looking for a quick returns on their investments; Directors may be anticipating market growth strategies by ploughing back or re-inventing profits; Workforce or Employees may be looking for a long term job prospects

14. Impact of Tescos’ Stakeholders on Tescos’ Corporate Objectives Meeting those highlighted Stakeholders’ expectations often requires that Tescos’ management vary their objectives from time to time. Objectives may also require being changed especially when outside influences have an important bearing on the company’s operations e.g a change by the Government on interest rates.

15. Tescos’ Responsibilities The responsibility of organisations like Tescos’ is to reconcile differences in the Stakeholders’ expectations in order to set agreed objectives for their businesses.

16. Categorization Techniques for Tesco’s Stakeholders Internal, External; Primary or Secondary:- Internal Stakeholders within the organisation: e.g. employees- Managers. Supervisors and shop-floor workers External Stakeholders include management outside the organisation e.g. government & trade associations, supply chain firms and agencies,

17. Categorization Continues Primary or Key Stakeholders are those that are directly affected by the companies’ activities : e.g. Employees & Stockholders. Secondary Stakeholders are those that are indirectly affected: e.g. government & media -most significantly affected those with the most influence either to promote or deter indirectly, the growth of any organisation.

18. Stakeholders’ Mapping Technique The mapping technique reveals the behavioural aspects of each of the Stakeholders (Post, Preston & Sachs, 2002). Stakeholders’ behaviours can be mapped into 7 types using different types of classifications or modules:-

19. Power, Legitimacy & Urgency Models – Latent Stakeholders (Groups 1, 2 & 3): These can also be sub-divided into ‘dormant’, ‘discretionary’, or ‘demanding’ stakeholders. Expectant Stakeholders (Groups 4, 5 & 6): Sub-divided into ‘dominant’, ‘dangerous’, or ‘dependent’ stakeholders

20. Definitive Stakeholders- (Group 7): have all three characteristics and should command a high level of management attention. However, it is important to note that management’s assessment of each stakeholders position is still subjective.

21. The Power / Interest Matrix Classifies stakeholders in relation to their power and the extent to which they are likely to show interest in the activities of the organisation. It can be used to highlight the nature of the relationship which should be adopted with each group.

22. Methods &Benefits of Processing Stakeholders Analysis Methods:- Identify areas of conflict: Organisation v Stakeholder, -Stakeholders v Stakeholder Prioritisation, -Reconcile and balance stakeholders- Align significant stakeholder needs with organisation’s strategies and actions.

23. Benefits of Stakeholders’ Analysis Analysing Stakeholders would enable such organisation to know Stakeholders better: Identify their relative importance, power and interests

24. -Managing relationships better - Identifying the inherent risks -Making better strategies and decisions -Working towards the greater acceptance of Organisation’s actions by stakeholders.

25. Disadvantages Best done on continuous basis because assessment of the analysis can be subjective. Time consuming exercise. Does not guarantee stability in environmental factors. e.g. inflation.

26. Maybe not all stakeholders’ interests can be met at the same time, focus on most important stakeholders Balance & reconcile all interests according to importance or urgency

27. Thank you all for listening!!!