Written Assignment 1

Internal and External Stakeholders

University of the People
BUS 5117-01 – AY2024-T3
Strategic Decision Making and Management
Instructor: Asha Alexander
Febreaury 07th, 2024
Internal and External Stakeholders
Several internal and external stakeholders could become partners for each of the three mentioned
projects. Internal stakeholders refer to individuals or groups directly impacted by the project. In
contrast, external stakeholders are individuals or groups outside the organization with a vested interest
in or are affected by the project.

Municipal Airport Project

Internal stakeholders include airport management, employees, and local government officials. On the
other hand, external stakeholders consist of airline companies and owners, all community members and
residents of the area, environmental organizations, government, and tourists.

Paper Factory Expansion Project

Internal stakeholders include factory management, employees, and local government officials. On the
other hand, external stakeholders consist of residents and community members, environmental
organizations, transportation authorities, and labor unions.

School Consolidation Project

Internal stakeholders include the school administration and staff, as well as the school board members.
On the other hand, external stakeholders consist of parents and students, residents and community
members, teachers' unions, and education advocacy groups.

Proposed Committees
To effectively address the opportunities and costs associated with each project, the strategic
management process can involve the formation of two committees:
1. Project Development Committee: Comprising representatives from internal stakeholders like airport
management, factory management, or school administration, this committee will evaluate the project's
feasibility and potential benefits. Their assessment will consider the organization's interests and the
well-being of its employees.
2. Community Engagement Committee: This committee will consist of representatives from both
internal and external stakeholders. Its primary objective will be to gather valuable input and feedback
from external stakeholders, including residents, environmental organizations, and labor unions. The
committee will contribute to a more comprehensive decision-making process by ensuring the inclusion
of community concerns and perspectives.
Integrating External Stakeholders and Keeping Stakeholders Informed
To incorporate external stakeholders into the strategic management process, the following measures
can be implemented:
1. Engagement and Consultation: The community engagement committee will actively seek input from
external stakeholders through public meetings, surveys, or focus groups. This will create an opportunity
for stakeholders to voice their concerns, suggestions, and expectations regarding the project.
2. Collaborative Decision-Making: The project development committee will consider the input received
from external stakeholders while assessing the project's costs and benefits. This will ensure that the
decision-making process is inclusive and considers the interests of all stakeholders.
3. Regular Communication: Throughout the project, stakeholders will be informed through various
channels, such as newsletters, public announcements, or dedicated project websites. This will provide
updates on the progress, address any concerns, and maintain transparency in decision-making.

Optimal Solution
The ideal approach for each project will rely on a thorough examination of the opportunities and costs
and the input received from internal and external stakeholders. It is crucial to achieve a harmonious
equilibrium between the project's advantages and potential adverse effects. For the municipal airport
project, the optimal solution might involve implementing measures to reduce noise and investing in
sustainable practices to mitigate the environmental impact. This would enable an increase in tourism
while minimizing noise and pollution. Regarding the paper factory expansion project, the best solution
is the implementation of strategies to manage traffic and adopting environmentally friendly production
methods. This would ensure the creation of well-paid jobs while minimizing pollution and traffic
congestion. As for the school consolidation project, the optimal solution could entail finding a balance
between cost savings and maintaining an acceptable student-to-teacher ratio. This could involve
exploring alternative cost-saving measures or seeking additional funding to address potential classroom
overcrowding. In all instances, the optimal solution should prioritize the interests of external and
internal stakeholders, considering their concerns and striving for a sustainable and mutually beneficial
outcome.
References

Ketchen, D. & Short, J. (2012). Strategic Management: Evaluation and Execution. This book is
Licensed under the Creative Commons by-nc-sa 3.0 license. Retrieved from:
http://jsmith.cis.byuh.edu/books/strategic-management-evaluation-and-execution
Stakeholder. (2020, March 23). Retrieved from
https://corporatefinanceinstitute.com/resources/accounting/stakeholder/

Friedman, Andrew & Miles, Samantha. (2006). Stakeholders: Theory and Practice