A4/Stakeholders of Business Organisations

[Tammi]

Q1. Which of the following wouldn't be described as an external stakeholder?

A. Environmental pressure groups
B. Competitors
C. Trade unions
D. Public

[Tammi]

Q2. Hierarchy is one of the sources of stakeholder power. This statement is

A. true
B. false


Q3. According to Mendelow's stakeholder mapping matrix if a stakeholder has low power but high interest the strategy should be followed is:

A. key players
B. Keep informed
C. Minimal effort
D. keep satisfied

[Annie Lee]

Hello Tammi,

Here is my answers to your question.

Q1 B (Q1 looks a bit tricky for me, coz environment pressure group, trade unions and public all are external stakeholders. Therefore, i guess the answer should be B)
Q2 B (I don't know, just anyhow guess:p:D)
Q3 B (keep informed)

[Snehal K]

Hi Tammi

My answers for Q 2 and Q 3 are same as Annie. But I am confused about Q 1. I think all the options given are external stakeholders. Can you please clarify?

[Tammi]

Hi,

The correct options to my questions are:
Q1. B
Q2. A
Q3. B

The first question I found quite tricky :D, one would think that all four versions are external stakeholders but competitors do are connected stakeholders and not external stakeholders, quite a confusing moment.

I have composed Q2 just to remember myself that sources of stakeholder power include:
Hierarchy
Influence
Control of the environment

[Snehal K]

Hi

Thanks for clarification. I had thought of B only for Q 1. But if competitors are not external stakeholders then who they are? I think they are not stakeholders of organisation is it?

[Tammi]

Hi, Snehal,
They are connected stakeholders and their interests are: customers being poached, possible takeover

But I think one can argue about it :)

[Snehal K]

Hi Tammi

Connected stakeholders have financial link with the organisation. But competitors do not have any financial link with organisation, nor they are internal stakeholeders. In my opinion competiotrs do not meet definition of stakeholders.