7. Positive impact of stakeholders
Volvo Group’s mission statement
By creating value for our customers, we create value for our
shareholders.
Toyota
knows the importance of building close
relationship with its suppliers. In fact, it even includes
the phrase “achieve suppliers‟ satisfaction” in its our
mission statement, this has been the cornerstone of
“Toyotas stunning success”.
L'Oreal
knows the importance of building close
relationships with its extensive network of suppliers,
who supply everything from packaging to production
equipment.
8. Contemporary Approach
Understanding organizational environment
Stakeholder interests and concerns
As well as, translating them into effective marketing
strategies and company positioning within a marketplace is
one of the greatest challenges facing organizations.
It is no longer enough to take into account only
Products
Segments
Markets
Customers, differentiation, and other strategies
you may think up.
9. Cont’d
Nowadays it is necessary to consider not only customer
company interactions, but also
Company shareholders
Company community
Company organizational environment and other
interactions (Ranchhod, & Gurau, 2007 p: 5).
Stakeholder relationships contribute to either the
success or failure of marketing strategies
“Management of the different stakeholders‟ interests is
a potential source of Competitive advantage.
11. Aims of stakeholders & influence
Shareholders
Profit, high dividend & values of their share
Voting rights at AGM‟s
Managers
Company growth & job security
Day to day decision making powers
Employees
Suppliers
Pay levels, working conditions and job security
Industrial action or strike to persuade the
organization to do what they want
Regular orders & prompt payment
Shortage or delay of supplies
Customers
Low prices, & high quality (Reject or accept
offering)
12. Aims of stakeholders & influence
Loan and interest repayments on time.
Banks
Power to grant or withhold loans and to set
the level of interest to be paid back
Government
Complies with the laws, pays the correct taxes and
provides employment for the population
Can introduce laws to make firms not to carry
out its strategies.
Society
Local
government
CSR, free environment, treat employees fairly
and not to exploit consumers
Industrial action or strike to persuade for their
need
Local community
Road building and maintenance
Employment, sponsor local events, schools &
hospitals (CSR)
Opposition in the form of protest, can exert
pressure on organization to move or close
18. Stakeholder analysis
Identify and map
internal and external
stakeholders
Assess the nature of each
stakeholders' influence
and importance
Construct a matrix to
identify stakeholder
influence and
importance
Monitor and manage
stakeholder relationships
23. Stakeholder management
Ranchhod proposes that companies can be grouped
in the following views:-
Narrow: select stakeholders with direct relevance
to the firms core economic interests.
Broad: full range of stakeholders and their impact
to the firm both economically and ethically on a long
term basis.
26. The Role Of Stakeholders In Marketing
Stakeholder affect marketing initiatives in their
Design,
Implementation
Evaluation
This is aimed at maximizing the benefit of all stakeholders:
Unfortunately, not given much attention to the implications of the
stakeholder perspective for marketing theory and practice,
28. Conclusion
Competition in business is an effort of two or more
parties acting independently to secure the business
of a third party by offering the most favorable term.
Market leaders can
expand market demand,
increase market share and protect market share in
order to stay number one. In addition, market
challengers can overtake market leaders, while
market followers may adopt a product imitation
strategy, market niches can focus on a smaller
market thus according to their competitive
positioning.
29. Cont’d
In the case of contemporary approach;
Underlying assumption of the stakeholder perspective is
that stakeholders have in common a willingness and
competency to act with the intent to influence the
organization
In turn, the organization is aware of these groups and
recognizes the need to deal with them
To do so, the organization develops strategies that guide
their behavior with regard to those groups and their
interests.
However, this behavior and supporting strategies are based
on the assumption that the groups (stakeholders) can be
„managed‟ to enable the organization to achieve its goals.
This is not always the case.
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