What is Strategy? - Stakeholders and Competitive Advantage
18 important questions on What is Strategy? - Stakeholders and Competitive Advantage
What is Superior Performance?
What are Black Swan Events?
Example: Financial Crisis
What are examples of Internal Stakeholders?
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What are examples of External Stakeholders?
What is the Stakeholders Strategy?
What is the Stakeholder Impact Analysis?
From the 3 important stakeholders' attributes, explain: LEGITIMATE CLAIM
From the 3 important stakeholders' attributes, explain: URGENT CLAIM
A stakeholder has an URGENT CLAIM when it requires a company’s immediate attention and response.
CSR Framework: Legal responsibilities
(labor, consumer protection and environmental laws)
CSR Framework: Ethical responsibilities
CSR Framework: Philanthropic responsibilities
What are the steps in the Five-step process of recognising stakeholders' claims?
Step 2: Identify Stakeholders' Interests
Step 3: Identify Opportunities & Threats
Step 4: Identify Social Responsibilities
Step 5: Address Stakeholders' Concerns
Five-step process of recognising stakeholders' claims. Explain step 1
The firm identifies their most powerful internal and external stakeholders. They focus on stakeholders that currently or potentially have a material effect on the company.
If the needs of these stakeholders are not met, they can materially affect the company's operations.
For public-stock companies, they most powerful stakeholders are shareholders.
Dissatisfaction can result in depreciation of the firm’s market value. (ex. when shareholders sell their stock because they are not satisfied with their ROI)
Five-step process of recognising stakeholders' claims. Explain step 2
Managers need to specify and assess the interests and claims of the pertinent stakeholders using the PLU criteria*
*power, legitimacy and urgency criteria
Five-step process of recognising stakeholders' claims. Explain step 4
Use CSR framework to identify responsibilities
What is the CSR Framework?
CSR Framework: Economic responsibilities
Governments: expect firms to pay taxes and manage natural resources (air, water,...)
Investors: expect return for their risk capital
Creditors: expect the firm to pay back their debts
Consumers: expect safe products and services at appropriate prices and quality.
Suppliers: expect to be paid on time
Five-step process of recognising stakeholders' claims. Explain step 5
Managers need to decide the appropriate course of action for the firm, given all of the receding factors.
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