The stakeholder analysis is a analysis strategy employed to determine the stakeholders of the business and what their role should be in the decision making and the operations of a business. “There are two major elements to Stakeholder Management: Stakeholder Analysis and Stakeholder Planning. Stakeholder Analysis is the technique used to identify the key people who have to be won over” (‘Stakeholder Analysis’). This strategy can be used by the Northern Rock Bank to determine its stakeholders and how best their roles can be used to manage the business interests effectively.
For the Northern Rock Crisis case the stakeholders that were associated with the company were the employees, the customers, the management, the shareholders as well as the depositors who had deposited their savings in the bank as well as the media which is an external stakeholder. The media played the role of an aggregator when it released information about the crisis at the Northern Rock to the general public which alerted the customers and the shareholders. The customers sought to takeout their deposits from the bank all at the same time while the shareholders sought to cash in their investments while still possible which aggravated the crisis. The company has a choice of using multiple strategies for incorporating the stakeholders in the business. These pertain to the stakeholder interests, and their power. The company should seek to develop a contingency plan which incorporates the interests of the strong power holding stakeholder entities into consideration while also alleviating the fears and the consequences faced by the victims of the crisis which include the customers as well as the employees of the company by taking their interests into account in the process of decision making.
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