1991 - Mendelow devised a way of analysing the key stakeholders of a business.
Generated a grid measuring shareholder power against stakeholder interest.
Helps company's to consider the prioritisation of stakeholders when decision-making.
E.g. Tesco:
Low power, low interest: shareholders with less than £750 worth of shares in the firm.
Low power, high interest: shopfloor employees.
High power, low interest: low electricity supplier.
High power, high interest: local authorities at the location of Tesco Head Office.
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Incluences On Relationships With Stakeholders:
The boss mayreject the notion of stakeholders believing that shareholders are more important.
Financial pressure - if the business is struggling for survival it would be understandable to focus solely on internal stakeholders (the ones who can help solve the problems).
The labour market - when jobs are plentiful, staff demand more pay, better working conditions and job redesign to make jobs more interesting, making conflict between workers and managers easy to conceieve.
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Managing Relationships With Different Stakeholders
Over the past 10 years, PLCs have been critisised for their excessive executive pay and the extent to which it has outstripped both staff pay rises and shareholder dividends.
To manage this situation, firms hire out financial public relations experts in order to 'smooth over' the issues.
Watchdog catches companies out.
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Communicating With Stakeholders:
Communicating with stakeholders tends to take a modern form in contemporary society.
A combination of social media, e-mail updates and a website with a 'supplier' section is as important as the customer one.
Encourages 'engagement'.
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Consulting With Stakeholders:
Majority of the time internal stakeholdrs are a priority to the business, however, external stakeholders may become very important.
E.g. Primark sees external pressure groups as a huge priority as the business is often accused of lacking ethical standards in relation to its supply chain.
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