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MGT 488 Week 2-DQ2.

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Who are stakeholders?
“Stakeholders are the individuals and groups who can affect the vision and mission of the firm,
are affected by the strategic outcomes achieved, and have enforceable claims on a firm’s
performance” (Hitt, Ireland, & Hoskisson, 2009, p. 20).
Hitt, Ireland, and Hoskisson (2009) state that, “stakeholders can be separated into three groups:
Capital Market Stakeholders who consist of shareholders and major suppliers of a firm’s capital;
Product Market Stakeholders who are the firm’s primary customers, suppliers, host communities,
and unions representing the workforce; and Organizational Stakeholders who are all of a firm’s
employees, including both nonmanagerial and managerial personnel” (p. 21).
How do stakeholders influence strategic business planning? What is the
significance of their role in strategic business planning? Provide specific
examples.
The greater influence a stakeholder possesses within the organization, the greater affect the
stakeholder will have in regard to strategic business planning. Stakeholders may possess different
levels of value to an organization and therefore, planning will be tailored to address that value.
For example, shareholder wealth may be of high priority to a company. The company will tailor
plans to ensure share prices increase with business operations. Another example may entail the
company’s desire to provide exceptional benefits to employees. By doing so, the employee
turnover rate is decreased and money is saved in recruiting, screening, evaluating, hiring, and
training expenses. The valued stakeholders for this scenario are the employees and strategic
planning is altered to reach the desired goal.
Reference
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009). Strategic Management: Concepts &
Cases Competitiveness and Globalization (8th ed.). Mason, OH: South Western Cengage
Learning.

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