Between stakeholders
Property giant China
Evergrande Group admitted
it is under "tremendous
pressure" and may not be
able to meet its crippling
debt obligations.
Between managers and
shareholders
Location of power
Conduits of information
Determine the successful
implementation
Firm has different degrees
of dependency
Managers
Employees
Shareholders (corporate
strategy)
Contractual relationship Bankers (cash flows)
Suppliers (purchase
strategy)
Customers (product market
strategy)
Government
Interest/pressure groups
Member's ethics Professional bodies
Principal (the shareholders)
CEO Agents (the company
CFO directors)
CRO
Conflict
Stakeholders groups
interreaction
Power and interest
Diferrent organisations are
created for different
purposes
A mission (the reason for
Pusues collective goals existence)
Achieving stated goals &
objectives
Controls its own Monitor their performance
performance Set targets (eg KPI)
A social arrengement Corrective action Implement strategy
Compare against targets set
Buildings
Has a boundary seperating Physical boundary Physical perimeter Campus
it from its environment Factory
Social boundary Stakeholders
Definition
A multinational car
manufacturer (eg Ford)
An accountancy firm (eg
Ernst & Young)
A charity (eg Red Cross
Examples Society)
An army
A local authority
A trade union (eg Unison)
Internal stakeholders Chapter 1 Business organisation
Stakeholders Physical
Business organisations and their stakeholders Overcome people's
Intellectual
individual limitations
Enable people to specialise
in what they do best
More productive
Connected stakeholders Common features Save time
Accumulate and share
knowledge
Enable synergy
Different business
organisations
Different stakeholders
groups
External stakeholders
Primary stakeholders
Secondary stakeholders
Stakeholders are those
individuals or groups,
potentially, have an interest
in what the organisation
does
Theories
The agency relationship