Stakeholders Group - Definition & Meaning
What is Stakeholders Group?
A stakeholders group is a group of individuals or organizations whose decisions or actions can affect the actions of an organization. In turn the organization’s actions or decisions may also affect the stakeholders group.
Stakeholder groups can be primary or secondary. Primary groups include the directors, salesmen, marketing people, etc who depend directly on the organization for livelihood. Secondary stakeholders include the customers, public who hold shares of the company, government, etc who depend on the value created by the business. Stakeholder groups are also classified as internal (directors, salesmen, etc), connected (customers, suppliers, competitors, etc) and external (media, government, etc). Marketers use the Stakeholders map technique to categorize various stakeholders in these groups.
Eg – When P&G had come up with Tide Natural, its competitor HUL was affected to some extent. So they improved their product Rin and introduced it in the market in the same price range. This is an example of how strategy of one Stakeholder group can affect that of another.
When the customers don’t buy a certain product due to quality or price issues, generally a company has to withdraw it from the market. Here again, customers who form a connected stakeholders group for the company affect its decision and actions.
Hence, this concludes the definition of Stakeholders Group along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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