Strategic Decision Making and Management

Written Assignment Unit 1

Strategic Decision Making and Management

‘’ roles of internal and external stakeholders’’

MBA, University of People

BUS 5117-01 - AY2023-T2

Dr. Tahemina Pathan

November 15 2022

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 Strategic Decision Making and Management

A stakeholder is any organization, community, or people that have an interest in a company and

can influence or be affected by it. In any business environment, stakeholders can be classified as

either internal. individuals and parties, within the organization or external, i.e. external parties,

which influence or are affected by business activities (Markwell, 2010). Internal stakeholders are

categorized as the part of the business that they are directly employed by and work for, while

external stakeholders are the non-employee stakeholders affected but by the business of the

business (Surbhi, 2015)

Sometimes business decisions tend to influence the stakeholders, which is why stakeholder

management is essential to control the organizations' decisions while measuring the impact on

the stakeholders. The stakeholder manager considers the interest of stakeholders while

understanding their concerns, contributions and risks to them and obtaining a balanced decision

for the business and stakeholders (Markwell, 2010). They also acknowledge the potential conflict

between their role as a stakeholder in the company, their legal and ethical responsibilities to

stakeholder interests, and addressing issues via open communication.

We can therefore explain that a stakeholder is any group, person or persons who have an interest

in the welfare of an organization and in our case an airport. Different stakeholders have different

interests in the organization and our municipal airport will not be able to satisfy all stakeholders

and may have to make concessions to achieve its goal, allowing larger aircraft to serve its

facilities. (Ketchen, and Short, 2012)

Here we can mention some stakeholders: -

- One of the most important stakeholders of any organization is the external stakeholder customer.

Although the airport exists to serve the community in that it provides an airplane to transport

flyers, the airport would not be able to exist if customers did not want to travel by plane.

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- Employees, an internal stakeholder, may be next in order of importance because employees are

what make a business work. Employees may also be external stakeholders who look to the

company to ensure they have jobs that provide income to take care of their families. As a

stakeholder, they are, therefore, looking for safety and security.

- The next level of stakeholders in my mind are the investors who are debtors and shareholders of

the organization. As such, these types of stakeholders may be both internal and external. An

investor invests his money in an organization and expects to earn a certain rate of return. These

investors are grouped with debt holders and as stakeholders, the welfare of the organization is of

paramount importance to them.

- Communities also have a vested interest in the organization. As stakeholders, they are looking

for reliable jobs, help contributing to the local economy, and the health and safety of the local

environment.

- As a local government agency, it can help broaden the community's tax base, but it also

contributes to the federal government becoming a stakeholder as it looks for airport tax income.

(Stakeholder - Learn About the Different Types of Stakeholders., 2020)

From a strategic planning perspective, the CEO of the airport will have to create an

organization, possibly two committees, that can address the opportunities and costs of the

project. The first committee should include representatives from local businesses, environmental

citizens, officials responsible for supporting laws and regulations, and members from the

municipality. The second panel will have representatives from the airline, who will use the

facility, select community representatives, and local federal representatives.

Factors that will influence the decision.

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External stakeholders will be affected the most by the increased noise level when large aircraft

are landing and taking off. Secondary to this is the factor that larger aircraft will have a greater

impact on actual pollution because they burn more fuel. Committees must be able to speak to

these different types of pollution.

What kind or type of rewards such an endeavor might bring to society? It is important to

answer this question because it affects investors, other external stakeholders, and society at

large.

- How many jobs will be created? This is important because it will allow the community to grow

and provide more jobs that lead to more security for the community. It is important for the

external stakeholders to be aware of the facts that will influence the decision in his favor.

- How much contamination will there be? This is a difficult point to prove, but it is not only fuel

and noise pollution, but the pollution that walking brings. Stakeholders may want to know how

to counteract negative environmental impact. How many trees can be grown that will be planted

to offset some of the pollution. Municipal workers will take care of any further human

contamination.

Conclusion

The committees will have to come up with a vision and mission, and then create a strategic plan

to implement that vision. Committees can set up a body that will provide oversight once the

project is in fruition. The Authority will have to ensure that the rules, processes and regulations

are aligned so that investors are attracted to the opportunity. That the rules are applicable and

that the "Authority" will deal with such issues so that citizens in the community have an

opportunity to report violations that provide guarantees about the process. The Authority must

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have direct contact with a regulatory body so that violations of the law can be reported, whether

they are established locally or under a federal mandate.

References

Ketchen, D & Short, J. (2012). Strategic Management: Evaluation and Execution. This book is
licensed under a Creative Commons by-nc-sa 3.0 license.
http://jsmith.cis.byuh.edu/books/strategic-management-evaluation-and-execution
Markwell, S. (2010). Identifying and managing internal and external stakeholder interests.
https://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5b-
understanding-ofs/managing-internal-external-stakeholders
Stakeholder - Learn About the Different Types of Stakeholders. (2022, October 10).
https://corporatefinanceinstitute.com/resources/knowledge/finance/stakeholder/Friedman
Surbhi, S. (2015). Difference Between Internal and External Stakeholders.
https://keydifferences.com/difference-between-internal-and-external-stakeholders