W 2: Stakeholding - Who Do We Look To?

This worksheet looks at who the various stakeholders for Cameron Balloons are and examines how important their relationship with them is.

Step 1 - Staking out the territory!

In the Paperless School, look up the various stakeholders for a business. See if you can identify seven key stakeholders and put them in a diagram like the one shown.

Now think about how important each of these groups may be to Cameron Balloons. Try to rank them from 1-7, with no. 1 being the most important.

Write a short paragraph justifying your reasons for numbers 1 and 2.

Step 2 - Demanding the supply from the suppliers!

Suppliers are one of the key stakeholders for Cameron Balloons. Go to the purchasing explanation section and pick out five facts that help to show why this relationship is particularly vital to Cameron Balloons.

What are the aims of the purchasing department when dealing with suppliers? (What do they want from them?)

What are the aims of the suppliers when dealing with Cameron Balloons? (What do they want from them?)

It should be very apparent that many of these are contradictory. Which of these aims of the two groups potentially conflict the most?

Because of this many supplier-firm relationships are based on the degree of market power each group has. The firm trades suppliers off against one another to get the best price. However, stakeholding theory suggests that firms should aim to build closer long-term relationships with their suppliers. In the case of Cameron Balloons they need to do this as many of their suppliers are specialists and irreplaceable.

What features will there need to be in this relationship if it is to be successful?

How does each group (the firm and the supplier) benefit from this closer relationship? List as many benefits as you can for the firm (Cameron Balloons) and the supplier.

Step 3 - Supplying the demands of the stakeholders

The stakeholders other than the suppliers also have a keen interest in the success of Cameron Balloons - mostly for very different reasons. Outline reasons why each of the other stakeholders (as detailed in Step 1) have an interest in Cameron Balloons’ long-term health as a company.

Write a paragraph setting out policies that Cameron Balloons could adopt to attempt to address some of the concerns of other groups.