Management of Stakeholders
There are many factors which have an effect over corporate strategy other than the organisations stakeholders which can influence the management decision process and the corporations strategy. The most influential external factors which will effect the organisations strategy are those included within the PESTEL framework and ethical issues within the marketplace, internal factors will mainly include the organisations history and culture.
When discussing strategy there are generally 3 different ways in which it can be looked at, known as the strategy lenses which classify a corporations strategy into 3 types; Design, Experience and Ideas.
A Design strategy is one which requires managers to be rational decision makers , each decision aiding the companies economic interests. This approach allows managers to assess complex decisions with the aid of analytical and evaluative tools, these types of organisation may look to Porters 5 forces, PESTEL, SWOT analysis and the Ansoff matrix for formulating strategy. This approach is often encouraged by stakeholders with a financial interest in the company such as banks, financial analysts, shareholders and employees. Managers may find that if they regard these financial stakeholders as the most influential they will be forced into developing a strategy which becomes more and more focused towards a Design lens style. This could possibly result in the loss of innovation within the organisation as the management become caught up in the use of analytical tools which should only be used to aid decisions not make them.
The Experience lens differs from Design as this approach leads to strategy developing from within and not just from the top management. This is due to the organisation taking advantage of individuals experiences. The main driving force behind the development of this type of strategy would be the culture of its employees and those of its stakeholders, this would give more power to internal stakeholders such as
When discussing strategy there are generally 3 different ways in which it can be looked at, known as the strategy lenses which classify a corporations strategy into 3 types; Design, Experience and Ideas.
A Design strategy is one which requires managers to be rational decision makers , each decision aiding the companies economic interests. This approach allows managers to assess complex decisions with the aid of analytical and evaluative tools, these types of organisation may look to Porters 5 forces, PESTEL, SWOT analysis and the Ansoff matrix for formulating strategy. This approach is often encouraged by stakeholders with a financial interest in the company such as banks, financial analysts, shareholders and employees. Managers may find that if they regard these financial stakeholders as the most influential they will be forced into developing a strategy which becomes more and more focused towards a Design lens style. This could possibly result in the loss of innovation within the organisation as the management become caught up in the use of analytical tools which should only be used to aid decisions not make them.
The Experience lens differs from Design as this approach leads to strategy developing from within and not just from the top management. This is due to the organisation taking advantage of individuals experiences. The main driving force behind the development of this type of strategy would be the culture of its employees and those of its stakeholders, this would give more power to internal stakeholders such as