Question

Internal and External Stakeholders

This exercise is important because it reviews the role of stakeholders and their relationship to a firm’s competitive advantage. Different stakeholders play different roles in the firm's quest for competitive advantage.

Read the overview below and complete the activities that follow.

The textbook discusses the vital role stakeholders can play in the performance and survival of the firm. These stakeholders are often in a complex relationship with the firm. Stakeholders make specific contributions in support of the company and expect certain benefits in return. The characteristics of this exchange relationship are covered in the textbook.

The goal of this exercise is to identify the unique contributions of and benefits for different stakeholders.

Answer 1

Unique contributions of and benefit for different stakeholders are as follows:

* Government : government helps the firm as it reduces the tax levies and provide exemption.

* Banks : banks help the firm by providing short term and long term loans for continuing the operation of business smoothly.

*Management and workers: Help the organisation in maintaining good work culture.

* Community : Help the organisation for maintaining good environmental conditions.

* Customers : Help the organisation in maintaining its goodwill in the market if products are providing satisfaction as needed.