Strategic Management Lesson 3
Strategic Management Lesson 3
Strategic Management Lesson 3
CHAPTER
THE MISSION, AND 2
BUSINESS
ETHICS
Stakeholders
individuals or groups with an interest, claim, or stake in the company,
in what it does, and in how well it performs.
External stakeholders
are all other individuals and groups that have
some claim on the company.
Examples: customers, suppliers, creditors
(including banks and bondholders) governments,
unions, local communities, and the general public.
All stakeholders are in an exchange relationship with the company
Each stakeholder group supplies the organization with important
resources (or contributions),and in exchange each expects its interest
• Stock holders provide the enterprise with risk capital and in
exchange expect management to try to maximize the return on their
investment.
• Creditors such as bondholders provide
the company with capital in the form of debt,
and they expect to be repaid on time with
interest.
• Employees provide labor and skills and in
exchange expect commensurate income
job satisfaction, job security and good
working conditions.
• Customers provide a company with its revenue and in exchange want
high-quality reliable products that represent value for money.