Categorizing and Identifying Business Stakeholders: Types Explained
Hey there! Let's dive into the business world and quickly understand who these stakeholders are. A stakeholder is anyone who has an interest or influence in a company, from employees to local communities. These individuals or groups can contribute to a company's success or have demands they want the company to fulfill.
Let's categorize them. First, we have internal and external stakeholders. Internal stakeholders are part of the organization and influence the company through direct relationships, like employees, management, and shareholders. External stakeholders, on the other hand, do not directly work in or own the company, but they impact its actions and performance. Examples of external stakeholders are suppliers, customers, governments, creditors, and the local community.
Next up, we have primary and secondary stakeholders. Primary stakeholders are more strategic and directly affect the company. Think of customers, suppliers, employees, and shareholders. They engage in economic transactions and have a significant influence on the company's success. Secondary stakeholders are less directly tied to the company. They still have an impact, but it's often indirect, like competitors, the media, government agencies, and the general public.
Lastly, we can classify stakeholders based on their involvement in the product market, capital market, or organization. Product market stakeholders influence the company's offerings, product quality, and pricing. Capital market stakeholders provide financial resources, like investors, lenders, and banks. Organizational stakeholders deal with company performance and policies, such as employees, managers, and even unions.
Bear in mind that these classifications aren't set in stone. For instance, in banking, the central bank can be considered a primary stakeholder due to its regulatory influence, while it’s more of a secondary stakeholder for manufacturers.
Now, you have a better idea of who the different stakeholders are and how they affect a company. Happy business maneuvering!
Sources:1. Stakeholder Conflict: Balancing Interests for Business Success (Types, Examples, Resolution)2. Reasons Behind Stakeholder Conflicts: Balancing Interests for Business Success (Key Causes)3. Business Stakeholders: Navigate Key Players for Success (Types, Interests, Influences, Conflicts)4. Why Stakeholders Matter to Business5. How to Handle and Resolve Stakeholder Conflicts: Navigate Disagreements for Business Success6. Internal Stakeholders: The Engine of Every Business (Their Types, Interests, Influences)7. Customers: The Lifeblood of Every Business (Their Interests, Influences, Bargaining Power)8. The Government’s Impact: Laws, Policies and Business Success (Interests, Influences)9. Local Community: A Key Stakeholder for Business (Examples, Interests, Influences)
While internal stakeholders like employees, management, and shareholders are directly connected to a company as part of the organization, external stakeholders such as suppliers, customers, governments, creditors, and the local community can still have profound effects on a company's actions and performance. In the context of finance and investing, it is essential to consider primary stakeholders like customers, suppliers, and shareholders who engage in economic transactions and significantly impact a company's success in the product market and capital market. happy business maneuvering!
