One Size does not fit all, same is with the stakeholders each of them are different, hence it is important not have a common approach to all of them. The intention of this particular blog is to help you decipher the stakeholder dynamics and plan your course of actions. People who aspires to become an entrepreneur, should master the art of managing them
Classical Theory: Stakeholders were defined as ‘those groups without whose support the organisation would cease to exist’. The core concept, in other words was ‘survival’; without the support of these key groups, the firm will not survive
After 1980s Research in strategic management redefined Stakeholders as‘any group or individual who can affect or is affected by the achievement of the firm’s objectives’
Stakeholder types and their Dynamics:
Power + Legitimacy = Dominant stakeholder
Power+Urgency = Dangerous stakeholder (Monitor very closely)
Power+Legitimacy+Urgency = Definitive stakeholder
In reality stakeholders change over time, and their stakes change depending on the strategic issue under consideration. They can move from extremely supportive to non supportive if they are not properly managed.
Watch is this one minute Video for a quick recap.
This above topic is from the research paper of Edward Freeman, taught by Dr Arun Abraham Elias Associate Dean (International and Accreditation),Wellington & Wairarapa, New Zealand during his visit for International week at IIM Trichy