Business Strategy

Stakeholder Theory

The Stakeholder Theory is a theory of organizational management that states that companies could archive better performance by taking all stakeholders into account, not only shareholders. Stakeholders are clients, suppliers, employees, the government and the society where the company operates.

Stakeholders are defined as parties that are affected by the actions of the company, directly or indirectly. Stakeholders can be classified in internal and external.

Internal stakeholders are:

Business Strategy

Strategic planning is a management activity and a process that defines the direction and the objective of an organization over the long term (what should the firm do on the long run?) and that defines how should resources should be allocated to pursue this objectives.

Strategic planning refers to develop a plan of action to achieve a particular goal. It includes an evaluation of the organization and the context. It has a focus on the future. It serves as a guide to allocate resources over the long run, but also as a guide to middle manager.

Taken as an ongoing process, it strategic planning can be a key asset of an organization.

Company Resources

Company Resources are all assets a company controls and can use to achieve its goals.

Company resources include the following:

  • Human Resources
  • Material Resources
  • Financial Resources
  • Intangible Assets

From this point of view, we can define a company as a unique collection of resources. This collection is not easy to replicate, and the differences between the quantity, share and quality of resources of different companies have an impact on the performance of them.

And acquisition is when one company takes over another an establishes itself as the new owner. It usually takes place through the buyout of the majority shares package. This implies the control of every asset of the sold company.

The asset acquisitions strategy consists in the buyout of assets instead of shares. The buyer company doesn’t want to take control over the seller, it just want to acquire some assets he considers of value.

Asset acquisitions process requires the monetary valuation of every asset to be purchased. It’s a costly process.

Planning is an administrative process that consists in analyzing different strategies and courses of action, taking into account the present and future organizational environment.

The business planning process defines:

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