➔ About creating and delivering value
➔ Only when you combine operations and marketing you get value
➔ Good stuff cheap- delivering products efficiently and cheap
➔ Stuff= good or service or both
➔ Good- effectiveness- delivering the customer the product that will satisfy their wants and needs, we have worked w you and figured out what you need and we have actually produced it and delivered it
➔ Cheap- efficiency, whether you can produce the product at a cost that will enable to make customer the happy, induce them to buy and at a low cost- only using the resources that are necessary not wasting resources
How are effectiveness and efficiency be achieved?
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➔ Knowing customer needs
➔ Understanding technology
➔ Focus on process- where are the materials, how skilled do people need to be- design, execution (discipline, consistency) innovation (design)
➔ If you don't have a well designed delivery system you will get bad results ➔ Task time- how long does it take to do specific steps in the process of delivering something to a customer, time required to do a task, combination of run time and set up time We also discuss several other topics like Who are the engineers created "the box" that essentially allows one person at a time to time travel 6 hours prior?
➔ Cycle time- how fast you complete jobs, the time between completion of successive units or jobs, rate at which a process completes a jobs, depends on the time of product you're producing and the type of operation you are running
➔ Capacity- production processes have capacities, production processes ability to complete units of work per unit of time We also discuss several other topics like What is spectrophotometer?
➔ First- Upside down triangle- que (group of people or set of materials sitting there waiting to be processed) or inventory
➔ Then- Work station
➔ Serving 2 people at once- divide the task time/ number of servers, if number of cashiers increase task time stays the same but cycle time changes and so the capacity increases ➔ Capacity= time available/ cycle time
➔ Queue time- time spent waiting where no value is added. Either customer is waiting or materials are waiting to be processed, the input is not transformed in any material way, people waiting= queue, materials waiting= inventory example if coffee beans are sitting in bags waiting to be used or stack of cups
➔ Throughput time- your personal measure, time to go in and out, combination of how long you take waiting in line and the amount of time it takes for you to get your drink ➔ Time required for a job to go from start to finish If you want to learn more check out What recommendation would you make in regards to properly managing credit card usage and repayment?
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We also discuss several other topics like What does weber’s law tell us about the difference threshold?
➔ Queue time + task time
➔ Bottleneck- work center or step in the process w least capacity or greatest cycle time, determines cycle time for overall operation, rate determined by the bottleneck, highest cycle time
➔ Capacity utilization- % of capacity being used
➔ Efficiency measure that relates directly to cost and inversely to customer,re service ➔ One is the capacity that is required in any given time vs capacity available i.e. Capacity required/ capacity available
➔ Two is the demand/ capacity
➔ The right capacity utilization- 100% CU means it takes longer
➔ High capacity means ur making good use of your resources, no workers idyll, all equipment being used- working efficiently but people are waiting for long time ➔ How important cost is and how important customer service is- right utilization Services and Manufacturing
➔ The combinations:
➔ Service- pure service ex: legal representation , Good- pure good ex: pick them yourself apples
➔ But can have service is the main but have goods ex: shoe shine (somebody cleaning and polishing shoes, but you're paying for the service more than the polish) or good is the main service but have service to facilitate ex: iPhone (purchasing the phone but they also transfer memory for you etc which is the service which makes it more valuable)
➔ Task time- doing and setting up
➔ Throughput time - one item to get from the begin to the end of the process, from when the raw material started to when it was out of the assembly line
➔ Cycle time- just standing at the end of the assembly line, how long is the interval between the finished product. It is shorter than throughput time. How many units are being produced in an unit of time
➔ Bottleneck- process within that has the least capacity or greatest cycle time ➔ Capacity utilization- how much of the available capacity being used, high means people are working close to the most you can do, not too flexible, not too much slack ex: if there's a huge car crash and all beds are in use you won't have enough space for the new people
➔ Cycle time is the same as the bottleneck
Services and Manufacturing
➔ Good- tangible, durability, ability to inventory (can create something that can be put somewhere before someone purchases it), big facility size, low simultaneity (has impact on location, can produce it anytime you want and gets there when the customer wants it), facility location near material and worker, resource intensity- capital, can build volume which makes it capital intensive, quality easier to measure when it's a tangible product, lower customer contact
➔ Services- hard to asses quality, can't touch it or look at it later, low durability(service is instantaneous and doesn't really last, if you know you will have to come back for it again like a haircut, you wouldn't be willing to pay as much), high simultaneity (produce service when you're in contact w the customer- have to locate close to the customer and smaller in scale), higher customer contact, small facility size, facility location near customers, resource intensity- labor, need to have skill to customize, quality hard to measure
➔ Both entail operations
4 P’s of Operations Strategy:
➔ People, Partnerships, Processes, Place
➔ Facilities (location, layout, network) and capacity ( growth policy, economies of scale, additions)
➔ Where are we going to put our headquarters
➔ What kind of workforce will we want and how will we supply that
➔ What other companies will be her nearby to improve delivery of headquarter services People
➔ Workforce (selection, training, retention) and Organization (structure, rewards, performance measurement, culture)
➔ What will we pay them
➔ What benefits will we give them
➔ Technology and Innovation (project, job shop, flow humans vs machines, product innovation, process innovation), Execution (planning, quality control, maintenance) and Improvement (continuous improvements, six sigma, lean, reengineering) ➔ How can we improve quality and reduce costs
➔ Do everything manually or w the help of technology
➔ Where will you place quality control
➔ How will you go about with the processes?
➔ Supply Chain ( vertical integration coordination) and Technology and Innovation (project, job shop, flow humans vs machines, product innovation, process innovation) Value Chain Perspective
➔ Organizations add value by- harvesting raw materials, to producing basic materials, to fabricating parts, assembling products, distributing products, selling products to customers, providing after sale service, reclaiming materials through recycling ➔ Vertically integrated if they do all or servers of the steps
➔ A lot of companies have a narrow piece of the chain but they can still dominate their industries
➔ Create profitable business by choosing and executing parts of the value chain that makes the most sense
➔ Values have to be coordinated or integrated to be effective
Companies Supply Chain
➔ Make buy decision
➔ If it's your own people and processes and it's your own company it easier to control, it's easier to integrate across functions, fewer transportation issues, rapid response to customer (if marketing has a customer and goes to operations to change something for a particular customer the process will be easier than if you have a different supplier), avoid safety/ environmental blindspots (sometime if a different company is running a sweatshop or unsafe operation, it's easier to let that happen than if it's your own company cuz you're just buying a part or component from another company), fewer trade/ tariff issues
➔ Choose not to produce- have lower wages, lower fixed costs (don't have to build manufacturing and assembling facilities, someone else does the basic investment for this requirement), fewer regulations (part of the world w less regulations, not necessarily ethical but less expensive), no/less investment requirement, IT enables global coordination, globalization expands markets (outsourcing)
➔ Competition is much less about company vs company but more about supply chain vs supply chain
➔ What can my company do efficiently and effectively but what can my suppliers do as well so we can have a superior product
➔ Companies may have to take ethical responsibility for what their suppliers and distributors are doing or if it becomes big it messes your reputation
➔ Ability to meet and exceed customer expectations
➔ Cost of quality- can't always quantify quality
➔ Useful for attention getting- top management are more interested about money and how they will increase revenue
➔ 4 types of cost- cost of prevention, cost of appraisal- increasing overall quality results from investment in these, cost of internal failure (defects made, throw away material, as long as you catch it before it leaves your possession, ), Cost of external failure (service has more of this problem, can be higher than internal failure)
➔ Optimal point
➔ Bottleneck- has least excess capacity, will always have work to do, always 100% utilized, 0 idle time
➔ Bottleneck= cycle time
➔ Throughput time is longer than cycle time
➔ Cycle time might change bc of technology, if we reduce wait time, if bottleneck slow down it'll take longer
➔ Bottleneck drives cycle time
➔ If the is continuous cycle time does not change
➔ In the course of process the throughput time increases bc he bottleneck builds up more and more up, more items waiting and getting bigger
➔ As the queue builds up each item takes longer to get to the end
➔ Minimize cycle time- speed up bottleneck by adding people, making sure there is no queue time, if all stations were at the same speed there would be no bottleneck and so all tasks would be equal to the cycle time- perfectly balanced
The 2 E’s
➔ Effectiveness- if it satisfies the customers needs and wants
➔ Efficiency- using resources efficiently by doing something faster or lesser resources The 4 P’s
➔ Place- most efficient location is in terms of resources and employment ➔ Processes- 6 sigma- trying to reduce the number of defects
Cost of Quality
➔ Prevention and appraisal- make investments
➔ Cost of internal and external- when you do have defects what's the cost ➔ Trying to minimize overall cost- investment in prevention might reduce external and internal failure
➔ Curve- If you spend a lot of prevention and appraisal- fewer internal and external defects concentration of quality vs not that worried about defect problems and so you spend less on appraisal and prevention and so you have high internal and external defects ➔ Pick the point w the lowest cost of quality
➔ Companies always resist prevention and appraisal
➔ Goal of strategy is to help firms achieve profits that are higher than their rivals over the long term
➔ Try to figure out a way that your organization can outcompete its rivals in the long run ➔ Essence of strategy is to figure out what your organization can do in an unique way to deliver and capture value- can create value, but not capture value
➔ Main goal- maximize firm profits, maximize organizational performance ➔ Strategy is the brains of the business
➔ Strategy is unique bc rivals respond to you
➔ Has to focus on both external as well as internal environment- need to know how market is changing, but also internal things like culture of the firm, how to you reward your employees
➔ Requires tradeoffs- if you're not clear about what you’re giving up or what customers you don’t and do want- haven’t made the trade off essential to strategy
➔ Business know what it is that they are going to do but don't have a clear plan for turning what they do into profits
What is the Goal of Strategy?
➔ Develop & implement approaches to ensure that organizations achieve the highest possible rate of success (profitability), particularly relative to rivals
➔ Strategy exists as a field of research and practice:
➔ Practice- consultants- go into companies and help them when they face strategic problems- trying to help them achieve higher profits than their rivals
➔ Goal is to enable organizations (typically, firms) to achieve the greatest possible organizational performance (typically, P)
➔ Research- take large amounts of data and attempt to discern if there are any patterns that lead to high profits
➔ In research, the goal is to understand what are the determinants of long-term organizational performance (with the hope of informing practice)
➔ Trying to figure out how to increase the wedge between the avg price the firm charges and the cost they bear
➔ Brains that coordinates all functions of business like accounting, finance, marketing What is Strategy
➔ Strategy helps coordinate all internal firm activities by giving guidelines to each function within the firm
➔ Without overall strategy to guide such decisions, they may be uncoordinated, duplicative, and work at cross purposes!
Strategy is Based on Rivalry
➔ Strategy requires undertaking actions while anticipating their potential effect on rivals’ and rivals’ likely responses to those actions
➔ Imitate on things like flavors, packaging, spokespeople, etc
➔ Be able to undertake strategies where your opponents cannot respond to or take actions knowing what the best responses of your opponents won't alleviate what advantage you get
➔ Figure out best possible move for your rival before you make your move The Fundamental Fact of Strategy
➔ Both external environments & internal environments affect profits
➔ The fundamental fact in Strategy is that some industries have higher profits than others, and some firms within their industries have higher firms than others... profits vary across industry & within industry
➔ Some industries have higher average profits than others
➔ Some firms have higher average profits than others
➔ Our job (as strategists) is to:
1) Explain why industries & firms have high or low profit firm
2) Help make recommendations to firms about what strategic plans may help improve their profitability- how can we improve industry structure
What is Strategy
➔ Profits- industry level sources of profits vs firm level sources of profits
External Factors to Consider
1) Political Factors
2) Regulatory Factors
3) Macro Economic Factors
4) Social Factors
5) Demographic Factors
6) Technological Factors
7) Industry Factors
8) Competitors Actions
Internal Factors to Consider
1) Firm History
2) Physical Capital
3) Human Capital
5) Products/Market Share
6) Intellectual Property
7) Location/Real Estate
➔ Strategy requires firms making trade offs- choose to do somethings but not other 3 Tools of Strategy
➔ Most used strategy tool but least insightful
➔ Strengths (internal and positive), Weakness (internal and negative), Opportunities (external and positive) and Threats (external and negative)
➔ Strengths and weaknesses- good and bad things in the firm
➔ Opportunities and threats- good and bad things outside the firm
➔ Helps organizing for thinking about stuff that might affect firm profits in the long term ➔ Take a look internally and externally and put them in categories
➔ Step #1 - identify factors internal & external positives and negatives that may affect future firm profits
➔ Step #2 – categorize these appropriately
➔ Step #3 – use these as inputs to direct future strategic action of the firm ➔ The simplest Strategy analysis there is!
➔ The most widely used Strategy analysis there is!
➔ The tip of the iceberg!
➔ not the most powerful strategy framework
Positives of SWOT analyses
➔ Quick; easy to do; easy to understand; widely recognized
➔ They help strategists organize their thoughts
Negatives of SWOT analyses
➔ Strengths can also be weaknesses (e.g., high quality labor is also expensive labor) ➔ Hard to link swot analysis to industry/ firm profits
➔ Hard to know what bucket to put some features in
➔ Doesn’t tell you about long term external threats, what they will do to industry profits ➔ Sensible, thoughtful, well-informed people can draw completely different SWOT analyses
➔ SWOT does not tell us much about external drivers of profits
➔ SWOT does not tell us much about internal drivers of profits
Competitive Positioning Grid
Combination between high quality and low price
➔ Goal = understand firm strategy choices
➔ Focuses on trade off’s inside the firm and how they do things differently from one another
➔ Key trade offs- high priced or low priced?, are they going to segment all of the segments or just one segment?
➔ Avoid being stuck in the middle
➔ Have to make these trade offs or else you underperform
➔ Helps understand how firms in same industry make different choice & explain firm-level profits
➔ A firm has a Competitive Advantage if it achieves a higher profitability than its industry average
➔ Organizations attempting to achieve competitive advantage (through Strategy) should choose between:
➔ Achieving low costs (cost leadership) or high prices (differentiation) & ➔ Serving all segments of a market (broad) or just a few segments (narrow) Choice #1: Type of Competitive Advantage
➔ Cost leadership vs. differentiation (high prices) Cost leadership = charge lower prices but get
➔ Costs so low that firm obtains higher profits than rivals
➔ Differentiation (premium prices) = accept higher costs in hope of pushing prices so high that you get higher profits than rivals
Five Forces Analysis
➔ Thinking about why an industry is low/high profit
➔ Goal = analyze expected industry average profits
➔ Like applied microeconomics
➔ The strength of the five forces determines the average profit potential of the industry ➔ Helps understand if an industry is a high profit industry or a low profit industry ➔ Don’t have to just worry about rivals, but also your buyers (can force down prices of your product) or suppliers (can drive our costs up)
➔ If it’s easy for others to get into your industry they will flood into the industry- will compete aggressively w you which will drive down your profits (potential entrants) ➔ If another industry comes along which can do very similar stuff then you can no longer charge high prices (substitutes)
➔ 2 dimensions- horizontal- who gets the profits that are in the industry? ➔ Where power is= where profit goes
➔ Vertical- are there any profits in the industry to have at all?
Threat of Entry
➔ List potential entrants
➔ Identify factors making it easy or hard to enter industry
➔ Overall: is the threat of firms entering the industry lo/med/hi?
Power of Suppliers
➔ List key suppliers
➔ Identify factors affecting Suppliers’ ability to squeeze profits
➔ Overall: do Suppliers have Lo/Med/Hi ability to squeeze profits?
Threat of Substitutes
➔ List potential substitutes
➔ Identify factors affecting their ability to squeeze profits
➔ Overall: do substitutes have Lo/Med/Hi ability to squeeze profits?
Power of Rivalry
➔ List key rivals
➔ Identify factors affecting intensity of rivalry (high rivalry squeezes profits) ➔ Overall: do Buyers have Lo/Med/Hi ability to squeeze profits?
Power of Buyers
➔ List key buyers
➔ Identify factors affecting Buyers’ ability to squeeze profits
➔ Overall: do Buyers have Lo/Med/Hi ability to squeeze profits?
Main goal of strategy- increasing firm profits, long term organizational firm performance depends both on environment (industry in which the organization competes and the trade offs that the firm makes)
Corporate Social Responsibility (Rewatch)
➔ Started out by companies wanting to challenge the thought that they are not helping society
➔ Help environmental causes, regulations
➔ It means seriously considering the impact of a company’s action on society ➔ Not just about making profit or following the law… make profit as well as helping society, creating real value
➔ Corporate Citizenship- we are all citizens of the world, just like companies they have obligations to each other… you have to develop your corporate citizenship...strategically including objectives for society when they go over strategy
1) Economic responsibility- very basic level- profit...companies need to make a profit, component of CSR (required), creating economic value for the employees, shareholders and the customers
2) Legal- have to fulfill a legal form of responsibility- follow law, instead of trying to find a way to get past it, do the right thing, be more proactive (required)
3) Ethical- above what law says, doing what’s right, just and fair, law is not your ceiling just your floor, go above it, example- organic food (expected)
4) Philanthropic- what does the company do beyond its core business for society, want to make an impact on society, using their own money to make change, give back to society (desired)
➔ Can have tensions between these 4 components maybe because of stress (wells fargo) or how nike outsources
➔ Many managers don't know enough about the law or decide not to know it ➔ Concessionary- do you get rewarded, you don’t always get economic value when you try to be ethical
Characteristics of a CSR
➔ Make products that are safe
➔ Doing business in a way that doesn’t pollute the environment
➔ Making sure your workplace is safe for employees… sexual assault
Arguments Against CSR
➔ Business is here to make money, gvt is made up to make a difference, it’s not our job ➔ Business is not equipped to handle social activities, or changes to the environment ➔ Companies have too much power, why give everything to companies? What will the role of government be?
➔ Dilutes business purpose
➔ Global competitiveness- if order for us to compete we have to outsource our supply chain, can’t pay top dollars to employees, trying to cut costs, by asking to do more you’re taking away profits
Arguments for CSR
➔ Enlightened self interest- businesses must take actions to ensure long term viability ➔ Warding off government regulations, prevent something from happening like the laws that pass like Dodd Frank that will affect your business profits
➔ Business have a lot of resources available, they have money for it, they should drive social change, they have so much money, more hands on the table along w government ➔ Proaction is better than reaction, be ahead of the game, don’t do it bc your competitors are doing it
➔ Public support- a lot of people today prefer branding w such expectations so it will help you get more demand
6 Reasons for Embracing CSR
2) Cost saving
3) Brand differentiation
4) Long term thinking
5) Customer engagement
6) Employee engagement
➔ Greenwashing- making you think they’re green when behind the scenes they are not, they convey an image of responsibility when in fact they are conducting business as usual ➔ Political CSR- companies donating to campaigns, or lobbying, can have an effect on government decisions like tobacco- want to convince the government but it can be good as well like opposing abortion
➔ Idea that you are becoming a citizen of the world
➔ In order to be a good citizen you have to be able to serve all your stakeholders well ➔ 7 dimensions and 5 stages for this
➔ Leadership, strategy, structure, issues management, stakeholder relationships, transparency, citizen concept
➔ Stage 1- elementary, 2- engaged, 3- innovative, 4- integrated, 5- transforming ➔ Who does the company want to be in the world, what is the role of the corporation in society
➔ You have certain responsibilities to the society you are a part
One Bottom Line
➔ Business have to look out for more than profit, economic profit, society and environment ➔ Triple bottom line- measure what you’re doing for society and work towards your objectives
➔ Increasing reporting towards how you are contributing to society
➔ If we can fulfill all the 3 things, earth can still produce for future generations Creating Shared Value and Conscious Capitalism
➔ CSV- can achieve economic success if you can give back to society (michael porter) ➔ Addressing social probs isn’t something business should do bc they are being nice, they should think more broadly, and how to meet people’s social needs in more expansive way, think about the context more broadly, how they can use their resources to address these problems
➔ Business and society could be brought back together if business redefined the basic purpose as creating shared value
1) Make better products
2) Redefine the value chain (supply chain)- how can you give back to your suppliers? 3) Enable local cluster development- giving back to your immediate surroundings ➔ CC- making money in a capitalist society by being conscious of our society (john mackey)
➔ Lot of stakeholders, job of a corporation is to find the interest of these stakeholders ➔ It’s not just about the owners, it’s about it’s stakeholders and find solution that works for all the stakeholders
➔ Incorporate their views as well
➔ Opposite to Friedman
➔ Very few people start business to make money, always have a higher purpose Socially Responsible Investing
➔ Social screening:
➔ Positive screening- finding socially responsible companies that are doing something more, are invested to green energy, and I want to invest in those
➔ Negative screening- look at all companies in your portfolio, I don’t want to invest in this company, avoiding socially responsible companies in your investment
➔ Invest in a way that is aligned and consistent w my social values
➔ Total dollars invested in SRI has grown
➔ Make more economic profit
The Stakeholder Approach to Business Society and Ethics
➔ An interest or a share in an undertaking.
➔ Derived from stockholder
➔ Any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization but can be affected by the companies decisions as well
➔ Stakeholder is a variant of the concept of stockholder—an investor/owner of businesses. Primary and Secondary Stakeholders
➔ Primary Social Stakeholders- have direct affect on your business, have legitimate claim to ur business, shareholders, customers-buying directly from your, suppliers- they do business w you, employees- work for you, your community
➔ Secondary Social Stakeholders- indirect effect on your business, can be very powerful, competitors, government, trade associations, etc
➔ Primary Non- Social- environment, future generations, animals, things you cannot be engaged/ non human species w but will be affected from the actions of your company ➔ Secondary Non social- activist groups, animal welfare groups
Important Stakeholder Attributes
➔ The way you group or watch your stakeholders, determine:
1) Who has a legitimate stake in your business
2) Which have a lot of power
3) Which one of them are creating an urgent need for you to respond
Stakeholder Management: 5 Key Questions
1) Identify broadly who are your stakeholders
2) What is at stake? Look at the angle of the stakeholders, what problems are they facing, what’s at stake for them? What’s at stake for the company?
3) What opportunities and challenges do our stakeholders present? - can support or threaten your whole model of doing business- can come up w a strategy but that idea can present
as a challenge or opportunity depending on the stakeholder, can’t please all stakeholders, how do you pacify those?
4) Systematically go through all the stakeholders, and see what is our responsibility to them through all the 4 dimensions?
5) What's the strategy you will use to effectively manage the stakeholder challenges and opportunities? Do we defend or do we take offense? Are we working directly or indirectly? Do we involve them in our decision or not?
What Opportunities and Challenges do they Present?
➔ Figure out a way you can collaborate w stakeholders and create a working relationship ➔ Some just want to be a thorn on your side but you have to find a way to minimize their affect on your organizations, be defensive, rebut everything they say, don’t alienate them or it feels like you're hiding something
➔ Be able to identify the potential of threat before it gets messy for you
Stakeholder Responsibility Matrix
➔ Responsibilities to stakeholders are legal, economic, ethical, philanthropic What Strategies or Actions Should Management Take?
➔ Am I going to deal directly or indirectly w the stakeholders? How powerful is the stakeholder- the representative sent says a lot about power
➔ Are we taking offense or taking defense- Offensive- attack the stakeholder (can hurt your reputation more) or defense- deny and hope it goes away
➔ Accommodate, negotiate, manipulate, resist stakeholder overtures?
➔ Should we use a combination of these strategies?
4 Stakeholder Types
1) The supportive stakeholder- the one that has got your back, you involve them 2) The marginal stakeholder- isn't too supportive but isn’t a threat either, low cooperation and threat, just want to monitor them and make sure they aren't getting agitated 3) The non supportive stakeholder- thorn on your side, decide carefully, high potential threat, defend as best as we can, offensive is risky
4) The mixed blessing- high on threat and cooperation, can go either way, can collaborate them to get them to your side, if you gave the enough they might be happy, but there for a potential to screw it up
➔ Have to build it gradually
➔ Comes from trial and error
➔ Some companies have specific people to oversee stakeholder, the person that deals w all the stakeholders to monitor
➔ Figure out how transparent you want to be w them
➔ How can we be sustainable- pleasing not just social but non social stakeholders being green
➔ How do we engage- open dialogue, meetings- How can we capture their concerns and comments?
➔ Keeping lines of communication open is key
Strategic Steps Toward Global Stakeholder Management
➔ To be serious about stakeholder engagement they put in their mission/value statement something about their stakeholders
➔ Not just enough to integrate this into decision making and value statement- want to be able to measure how effectively you are able to engage your stakeholders
➔ Traditionally it would be to focus on the interest of owners, that was their priority, but now it’s anyone affected by the company
➔ Stakeholder view- more parties, more interests, this is what an effective manager should do- look at wide range of interests
➔ Organize stakeholders based on legitimacy, power and urgency- which one should I pay most attention to?
➔ Legitimacy- how valid/appropriate is their claim? Owners have a direct claim- ownership ➔ Claiming in sense of moral or ethics like workers , or more distant like interest- activist groups
➔ Power- do you have an ability to produce an effect?
➔ Urgency- does the claim require immediate response?
➔ Competitors may work together if they are facing the same problem so their interest is aligned
Questions to ask:
1) Who are they? What are their stakes?
2) What are we going to do about it?
3) What are my responsibilities to them?
4) What are my strategies and actions we will take to address the stakeholders?