Custom «Three Generations of Family Entrepreneurship» Essay Paper Sample

Introduction

Stakeholder is an individual, a group or a company that has indirect or direct share in an organization. A stakeholder can be influenced by the company's action, goals and policies. The key stakeholders in any business might include customers, directors, workers, creditors, government, suppliers and the society from which an organization gets its resources. Stakeholders are not always similar and most of them are given various considerations. Stakeholder management on the other hand is a significant discipline that successful organizations normally employ to win support from others.

How the business has manage to recognize and satisfy the stakeholder interests

Organizations normally use various ways of recognizing and satisfying the interests of stakeholders. To manage the interests of stakeholders effectively, businesses usually employ various steps. Business normally starts by identifying its stakeholders. An organization identifies individuals who are being affected by its operation and those who have power over the business or are interested by the business success or failure. Business always ensures that that they identify the right stakeholders within stakeholder's organization. The business then prioritizes its stakeholders in away that it can easily meet their interests.

In prioritization, the business creates a long list of individuals and organizations that are influenced by the business operation. Some of the stakeholders might have power to block or advance the business operation, some might be interested in the operation and others might not mind. It's therefore upon the business to map out its stakeholders on an interest grid and categorize them by their strength over its operation. This assists the business to identify the groups or individuals who need more attention, those who need little attention and those who does not need the business attention.

In identifying and recognizing the interests of stakeholders such as financial stakeholders, successful business normally ensures that it focuses on an increasing sales and profitability. It also focuses on minimizing the costs of operation and improvement of productivity. For a business to satisfy the interests of its stakes holders, it ensures that it focuses on maintaining asset utilization very high. Customers are an important stakeholder in any business. They are significant in ensuring the final success of a given environmental strategy. The perception of a customer about the product or service is shaped by both its specific environmental features and by the organization's reputation as an environmental leader. The business normally creates products that are environmentally kind as it ensure that the competitive cost, style, function, performance and ease of use are maintained. It also reduces the environmental effects of product disposal and use and educates customers about product's environmental benefits.

The internal stakeholders in any organization are the workers and the management. Both of them are concerned with the level of internal environmental fineness that an organization exhibits. Internal stakeholder should have a say in both development and execution of the process and in the overall outcomes of their efforts that need to be calculated and communicated within the entire organization. To ensure this, business normally minimizes the quantity of resources that are utilized to produce a unit product. The business also reduces the quantity of wastes produced from creating a unit product. The process and product innovation are encouraged by the organization.

Mechanisms available to manage relationships with stakeholders

Effective relationships of an organization with the whole network of its stakeholders are important for its survival and development. The relationship therefore must be controlled in away that best meet the requirements and expectations of stakeholders and the requirements of the business.

The mechanisms that are available in managing the relationships between the stakeholders and to influence the strategic direction and performance are stakeholder circle model and stakeholder relationship management maturity model. In stakeholder circle model, the business only exists with the known approval of its stakeholder community and the management of the relationships between the community and the business normally enhance the chance of business success. The community consists of persons and groups, each with various potential of affecting the result of the business either positively or negatively.  Stakeholder circle is a model that is flexible, that is, it can be adjusted in a way that it caters for changes within stakeholder community membership and the influence of stakeholder in the entire project life.

Stakeholder relationship management maturity model defines the start of organizing the execution of processes improvements to increase the useful administration of stakeholder relationship within and around the business. In enhancing this concept, several levels of managerial readiness have been described that link the willingness of the organization to relate proactively in expanding and maintaining relationships with stakeholders. This model enables the most useful and pragmatic execution of stakeholder administration and engagement practices in an organization. The model achieves the result by offering a framework for progressive building ability, in alignment with maturity of the organization towards managing stakeholder relationships proactively.

The success of board of directors for Space Center Enterprises

The board of directors for space center enterprise was successful in fulfilling its governance role and in meeting the challenges it faced because, the directors had knowledge or skill and they used the expertise in their role as board members. The board of directors managed to fulfill their role because they placed the interest of the business first. They operated honestly, in good faith and in the best interest of the business. The directors ensured that they fully and promptly disclose any possible conflicts of interest acted upon it to avoid apparent or real conflicts of interest. They also ensured that they are acting within governing documents' scope of the business and that the committees and staff are doing well.

Paddy's weakness

Paddy was not qualified to fit in his father's footsteps as a CEO of the newly-merged Meritex organization because he did not have good strategic leadership skills. Strategic leadership implies utilizing a strategy in employee's management. The main strategy that is normally used in strategic style of leadership is employee's motivation. The main aim of the motivation is to improve the worker's productivity. The strategy entails thinking and planning. Strategic management is a model of management that supports and trains workers to best prepare the business for the future. As a strategic leader, a person normally looks ahead and analyzes the current in terms of arranging what might be a head for the organization. Strategic leaders need to adaptable and development-oriented. They should be responsible for making things done by training workers to think and operate more effectively. This enables the employees to attain the best outcome possible for the business. Paddy was not strategic leader thus he could not fit in his father's footsteps as a CEO.

Conclusion

From our discussion, it's clear that the business is responsible for identifying and recognizing stakeholders. It acts this way to satisfy stakeholder's interests. Stakeholder management on the other hand is a central activity in any environmental plan. Many business leaders all over the world have recognized the significance of developing environmental plan that encourages sustainable growth and integrates the issues, concerns and needs of stakeholders.