Organisational Strategy ( Pestel ) and Stakeholers ( Week 4 )

Organisational Strategy ( Pestle ) and Stakeholders


Organizational strategy is the creation, implementation and evaluation of decisions within an organization that enables it to achieve its long-term objectives. ( e.g. Pestle )

Pestle could be defined by 6 different terms :

1.  Political

• Government Stability

2.  Economic

• GNP Growth
• Interest Rate Rise
• Rises in Indirect Taxation ( such as VAT )

3.  Social

• Geographical Mobility
• Social Mobility
• Lifestyle Changes
• Demographic Changes

4.  Technological

• R&D Related Development
• Obsolescence

5.  Legal

• Health & Safety Development
• EU Directives

6.  Environment

• Green Issue

"GLOBALISATION"

Stakeholders are that which can affect or be affected by the actions of the business as a whole.

Different stakeholders will have their own values, expectations and objectives which they want to achieve.

Organisations need to understand the power a stakeholder has and the influence the stakeholder may exert over business objectives, how it acts and behaves :

• can disrupt the business's plan
• causes uncertainty in the plans
• the business needs and relies on the stakeholder

Sources of power for INTERNAL STAKEHOLDERS :

1. position power within hierarchy
2. influence
3. control of key resources
4. specific knowledge or skills
5. knowledge of the environment in which the organisation operates

Sources of power for EXTERNAL STAKEHOLDERS :

1. resources dependence ( e.g. a supplier )
2. knowledge and skills critical to success of the organisation
3. ability to gain attention through local or national media
4. coalitions between stakeholders

Stakeholder Analysis :
The technique used to identify the key people who have to be won over.

Step 1 : identify the stakeholder
Step 2 : prioritise the stakeholder and map out the stakeholder
Step 3 : understand the key stakeholder -- how will they be             effected?


STAKEHOLDER MAPPING :

• high power, interested people -- people you must make sure you satisfy
• high power, less interest people -- put some effort in but not too much to put them off
• low power, interested people -- keep adequately informed ( these people can be helpful with detailed work )
• lower power, not interested people -- monitor but do not communicate with too closely