Stakeholder mapping Stakeholder analysis Essay Example | Topics and Well Written Essays - 2500 words

Stakeholder mapping Stakeholder analysis - Essay Example The stakeholders can very well be found beyond the formal structure of the company. Therefore in order to find out all the stakeholders, the company is also required to have a look at informal and indirect relationships as well. The company management has to make a balancing assessment and evaluate all such external forces in order to take them along with company’s objectives. Two major elements for stakeholder management are Stakeholder mapping and Stakeholder analysis. By managing the interest of stakeholders an organisation can enhance the wealth in such a manner that economic benefits can be generated by positive relationships between the organisation and its stakeholders (Preston and Donaldson, 1999). This necessitates that the service values as perceived by stakeholders are determined in an objective manner. This includes determination of elements like information and knowledge sharing about the functioning of the company, joint ventures, acquisitions and mergers, comple mentary resources and capabilities. In fact, at times, the operational direction of the company is set by the manner in which the stakeholders perceive the company, its missions and objectives. Key stakeholders like shareholders, employees, financers etc. often make use of influencing strategies to guide the organisation or to set the priorities for the company (Frooman, 1999). Therefore while taking crucial corporate decisions, it is necessary to know about the expectations of different stakeholders and to determine the extent to which they could and would exert their influence. Mitchell et al (1997) contend that an influential model of how stakeholders influence organisations is based on attributes of power, legitimacy and urgency. Johnson & Scholes (1999) define stakeholder as, â€Å"Stakeholders are groups or individuals who have a stake in, or expectation of, the organization’s performance.† Besides the owners