1. IB Business and Management
1.4 Stakeholders and Stakeholder Conflict

2. Learning Outcomes Explain the interests of Internal Stakeholders
Explain the interests of External Stakeholders
Discuss possible areas of conflict between stakeholders
Evaluate possible ways to overcome stakeholder conflict

3. What is a Stakeholder
Any individual or organisation that is interested in or affected by activities of a business
Who might stakeholders be?

4. External Stakeholders Internal Stakeholders
Suppliers Customers
Competitors Special Interest Groups
Local Community
Internal Stakeholders
Employees
Shareholders
Managers
Government
Lenders
Media

5. Stakeholder Task - Group
Fill in the sheet about the 8 different stakeholder groups
Who are you? – Definition
What do you want? (Top 3 wants)
What will happen if your needs are not met?

6. Meeting Stakeholder needs
Look at your filled in sheets
Which stakeholder groups are likely to have interests that ‘conflict’

7. Special Interest Groups
Special interest groups are organisations who may become interested in the business spontaneously if the business undertakes certain practises:
Trade Unions
Pressure Groups
Industry Trade groups

8. Stakeholder Mapping – Johnson and Scholes
Which Stakeholders would be likely to fit into these quadrants?

9. Who are the most important Stakeholder Group?
Shareholders?
Employees?
Customers?
What arguments could you form to support each of these stakeholders being the host important?

10. Task In Pairs Pick a recent news article based on a strategic decision
Good examples are:
Takeover/merger
Job losses
Expansion
Flotation on the Stock Exchange

11. Task – In PowerPoint Identify the stakeholder groups in this situation
Identify the key interests and objectives of each of the stakeholders in this situation
Place each stakeholder on the Johnson and Scholes map
Identify any ‘stakeholder conflicts’
Make suggestions about what you think could be done in order to appease as many stakeholder groups as possible

12. Milton Freidman – Shareholder concept
Some theorists (Milton Friedman for example) say that a business’ only responsibility is to maximise profit
Is it the government’s job to be socially aware?
Should a business only be socially responsible as long as it generates the maximum profit?

13. Resolving conflict Good communication PR
Arbitration and Negotiation (ACASA)