Stakeholder Anaylsis - Essay Example

Person A wants to buy a part for his new product. He has selected three companies to choose. Each company has some history that will influence the purchasing decision of the customers. Person A needs to know which supplier to contract (Friedman and Miles 15). A stakeholder is any person with a special interest in an entity and who influences an entity’s decision and is also influenced by the decisions made by an entity. They are the customers, creditors, employees, owners, shareholders and the society (Friedman and Miles 15).

Stakeholder number one are the customers. They are the end users of the invented product (the bike rack). Stakeholder number two are the employees. They are the source of the effort and skills of producing the parts of the bike rack and the bike rack. Stakeholder number three is the society. The entity’s activities either causes the economic and social development or damage to the society. The following factors will be used to compare the top three stakeholders mentioned earlier: the product cost, employee treatment, and social effect (Friedman and Miles 15).

The reactions of the stakeholders to the three suppliers has a great bearing on the future sales of bike rack, thus, will influence the future performance of the company. The stakeholder analysis has been done based on three factors such as the price, the employee treatment, and the social effect of the three suppliers. Based on the stakeholder analysis in the above table, company 3 (supplier number 3) is the best among the three. In addition, all the three stakeholders consider company three as the best.

For this reason, Person A should sign a contract with company 3 in order to appeal to more stakeholders and improve