Internal And External Stakeholders Analysis

An evaluation of the key factors needed to gain the commitment of internal and external stakeholders when communicating vision

Since stakeholders are the individuals and groups who can affect and are affected by the strategy outcomes; and who have enforceable claims on the firm 's performance, their support to the business firm, together with their expectations from it, are important part of success of strategic management processes of the organisation. It therefore rests upon the organisation to honour their support and to make a significant effort in fulfilling their needs and expectations. External stakeholders constitute customers, suppliers, unions, mass media, bankers, creditors, and local communities while internal stakeholders constitute

In return, the organisation attempts to meet their expectations and to satisfy their claims. For instance, the shareholders expect good performance and returns on their investment, whilst the employees and managers expect fair dealing from the organisation and claim compensation in terms of salary and wages.

There are several factors which impact on the communication of vision to internal and external stakeholders. First, the size of organisation has an impact on the communication of vision to internal as well as external stakeholders. If the organisation is bigger, the message might need to be differentiated for each category of stakeholders. For instance, when communicating vision to external stakeholders which constitute customers, suppliers, unions, mass media, bankers, creditors, and local communities the message might need to be designed specifically for each target group. Another factor is the organisational development. This has a great impact on the communication of vision to stakeholders. If an organisation is fast developing, keen interest of stakeholders increases and the desire to know more increases. Hence the frequency of communication needs to increase to keep them in

Organizations have “something” that makes them have a unique identity. In addition, managers must be capable of influencing the culture of the organisation. Thus., the effectiveness of a company is highly influenced by the strength of culture. Thus organizational culture ought to be complemented by the culture for it to be effective. Therefore, for internal stakeholders such as employees, communication of vision might be easier as they share the same belief. When communicating vision to external stakeholders however, diversity needs to be catered for as the stakeholders might not on the same page with the shared norms, beliefs and values, as the case with internal stakeholders. Hence the need to communicate effectively and strategically so that the vision is realized. Stated simply, organisational culture refers to a set of commonly experienced stable characteristics of an organisation which constitute the uniqueness of that particular organisation and differentiate it from others. This organizational culture ought to be complemented by the culture for it to be effective. The size of the vision also has an impact on the