Stakeholders and Strategic Direction



Stakeholders and Strategic Direction

Task-1

Definition of Stakeholders

Stakeholders are a group or party who has some interest in an endeavour or a project. Traditionally it was believed primary stake holders of any organization or project are its customers, investors, suppliers and employees. On the other hand, according to the modern theory of stakeholders, there is an addition of trading associations, government and community in the list of stakeholders. But with a number of stakeholders, a common problem usually occurs, i-e various stakeholders have their different interests according to their preferences, and all these interests are not in synchronization with each others. Management of the stakeholders is very crucial to gain success in every project. Good management of stakeholders can take done by placing the right kind of people in their right places in the project (Investopedia, 2013). This will result in great success of your project. There are generally two kinds of stakeholders.

Internal Stakeholders

External stakeholders

Internal stakeholders

Internal stake holders are the most significant entity of any organization. They are directly related to the firm in monetary terms and have vested interests in the company. They are a vital part of any organization. Internal stakeholders usually comprise of employees, managers, board of directors and shareholders (BBC, 2013).

External Stakeholders

External stake holders are not part of the organization directly, but their interests are related to activates and outcome of the organization. The external stakeholders include customers, wholesalers, distributors, retailers, government, courts, banks, media, investors, fund managers, insurance companies, labour unions, competitors, community and the environment (Gregglee, n.d.). Stake holders of McDonald's are listed below:

McDonalds

Customers

Employees

Suppliers

Communities

Government

Trade Union

Interests of Stakeholders

Customers

Customers are always one of the most vital stakeholders of any organization. McDonald's cutomers are the back bone of the organization. The customers of Mc Donalds have a huge stake in the McDonalds business because it is because of them the organization is earning revenures. To facilitate the customers Mc Dondals is continuously commiteed to provide hygienic and quality food to them. (McDonald's Corporation, 2012, p.p 7-29)

Employees

Employees are the internal stakeholders of any company as they are the blood of the organization. The efforts employed by the employees make Mc Donalds to reap huge profits and success. The core interest of the employees lies in gaining stability and success within the organization. Their main concern is regarding the assurance and security of their job, and the scope of success in the future, equality and fair terms for all, should be given respect & a safe and healthy workplace. Mc dobnalds makes sure to implement the labor laws and provide al the relevant bonuses to the employees when ever it is necessary.

Suppliers

The suppliers also fall in the category of internal stakeholders. McDonalds has many suppliers as they deal in the food business. Suppliers' interest in McDonalds is to to get good price of the products they are supplying to Mc Donalds. Their main interest is the quantity of orders made by McDonalds as the more orders are there, the more money is made by the ...