A Short Note On Internal And External Stakeholders

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The interactions with internal and external stakeholders forms an organization. These stakeholders influence the organization’s management style, culture, ethics, structured and exchanges with its external environment. Organizations change and redesign themselves to increase their competitive advantage, which includes adapting new management styles and goals. One such style is Management by Objective, which has lately come up on the management boards as limiting employee potential (12manage, n.d.). Which may in the end impact the organizations overall competitive advantage in competing markets. What is organizational culture? It is what forms the organization, the people that work for the organizations and other organizations that they…show more content…
The environment in which the organization operates and the manner in which they utilizes resources affect their competitive advantage. The organizational goal in resource management “is to minimize its dependence on other organizations for the supply of scarce resources …find ways to influence them secure needed resources” (Jones, page 69). In which to manage resources an organization can employ the following practices, cooptation, strategic alliances and with mergers and takeovers. The organization reputation for “fair and honest business practices” can help them secure vital resources (Jones, page 71). Organizations with good reputations encourage suppliers and customers to engage them in business, which is “the most common linkage mechanism for managing symbiotic interdependencies” (Jones, page 72). In cooptation, this strategy involves bringing outside competitors into the organization, by sitting on the board or being part of the organization’s team, which then converts them into an internal stakeholder. By doing this, the external stakeholder now has an invested interest in the organization. Another form of resources management is making a strategic alliance, which involves long-term contracts, joint
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