Using a company of your choice, answer the questions below.
1. Analyse the company’s capabilities and how these relate to the key success factors in the market in which they compete
2. Using stakeholder theory, identify the major stakeholders in the business. Critically assess whether the company is focusing on the right stakeholders
3. Use a suitable theoretical framework to assess the company’s culture
4. On the basis of your analysis, recommend a strategy for future development of the company you have chosen
Edward Freeman’s stakeholder theory holds that a company’s stakeholders include just about anyone affected by the company and its workings. That view is in opposition to the long-held shareholder theory proposed by economist Milton Friedman that in capitalism, the only stakeholders a company should care about are its shareholders – and thus, its bottom line. Friedman’s view is that companies are compelled to make a profit, to satisfy their shareholders, and to continue positive growth.
By contrast, Dr. Freeman suggests that a company’s stakeholders are “those groups without whose support the organization would cease to exist.” These groups would include customers, employees, suppliers, political action groups, environmental groups, local communities, the media, financial institutions, governmental groups, and more. This view paints the corporate environment as an ecosystem of related groups, all of whom need to be considered and satisfied to keep the company healthy and successful in the longterm.