Page 49 - 6484

As you can imagine, for instance, one key stakeholder group comprises the
CEO and the members of the top-management team. These are key managers, and
they might be owners as well. This group is important for at least three reasons:
1. Its influence as either originator or steward of the organization’s mission
and vision.
2. Its responsibility for formulating a strategy that realizes the mission and
vision.
3. Its ultimate role in strategy implementation.
Typically, stakeholder evaluation of both quantitative and qualitative
performance outcomes will determine whether management is effective. Quantitative
outcomes include stock price, total sales, and net profits, while qualitative outcomes
include customer service and employee satisfaction. As you can imagine, different
stakeholders may place more emphasis on some outcomes than other stakeholders,
who have other priorities.
Stakeholders, Mission, and Vision
Stakeholder analysis refers to the range of techniques or tools used to identify
and understand the needs and expectations of major interests inside and outside the
organization environment. Managers perform stakeholder analysis to gain a better
understanding of the range and variety of groups and individuals who not only have a
vested interest in the organization, and ultimately the formulation and implementation
of a firm’s strategy, but who also have some influence on firm performance.
Managers thus develop mission and vision statements, not only to clarify the
organization’s larger purpose but also to meet or exceed the needs of its key
stakeholders.
Stakeholder analysis may also enable managers to identify other parties that
might derail otherwise well-formulated strategies, such as local, state, national, or
foreign governmental bodies. Finally, stakeholder analysis enables organizations to

49