Question

What is a stakeholder analysis and how is one formed?

Answer 1

Stakeholder Analysis is the first step in management accounting wherein it follows a systematic approach for analysing the stakeholders by their interest and power. High interest and high power stakeholders are significant players while low interest and low powers are least important. Stakeholder Analysis formation involves three steps to follow in. Firstly there will be an identification of the stakeholders. Secondly working out the influence, power, and interest of the stakeholders . Thirdly developing a good understanding of the most significant players to know how they are likely to respond and how business can win their support