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PESTLE and life Cycle analysis - Essay Example

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PESTLE and Life Cycle Analysis Stakeholders are those individuals or group that can affect or get affected by the activities of an organization. Many books and articles define stakeholders as the “a person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives, and policies” (Business Dictionary.com)…
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PESTLE and life Cycle analysis
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Download file to see previous pages According to this method any individual stakeholder or any stakeholder group’s power can be ascertained and managed. Many books define stakeholders to be individuals or groups that have an interest in an organization; hence it may not be necessary for any individual or group to have an interest in any particular organization because interest is not the only ingredient to constitute regard someone as a stakeholder. This can be further explained by giving the example of the society at large which is a major stakeholder to the all factories which are emitting a large quantity of carbon dioxide, hence they only have an interest to the extent of the carbon dioxide emission and they might not have enough power to stop the factories from doing such an act (ACCA, 2007). The five groups of stakeholders that any business organization needs to consider for its growth perspective would be: Shareholders/Owners Employees Customers Government Society at large Majority of banks consider the employees to be the most important stakeholder within the banking organization. Banks consider their employees to be their vital stakeholder because of their decision making ability. The employees have the ability to take up decisions on any given matter hence these employees have the ability to drive the bank into a profitable or a loss making venture. This decision is really important for the survival and the long-term growth of the banks and hence it is because of this only reason that the employees have such a powerful decision in their hand, banks considers them to be the most important stakeholder (ACCA, 2007). “Systems thinking” is a process which tells that different things and activities within nature/organization are totally linked with each other. This theory defines that the activity of one individual or a group would affect the life or decision of other individuals or groups. Systems within an organization include the employees, the processes and the structure of that organization and it is because of these people, processes and structures that the organizations get affected either in a positive or a negative manner. The banks use the closed systems thinking approach in the entire movie. The best exception would have been to follow the open systems thinking approach where the banks would have been involved in focusing on external issues and threats as well, this way open systems thinking system would help the banks to survive for a long period of time by focusing on the external environment along with the internal one (Gharajedaghi, 1999). The governments should play an important part in stabilizing banks as these banks are the main institutions in any economy. These banks are heavily involved in stimulating an economy and hence they should always be helped in situations when these banks are falling apart. Government interference in managing the general environment would be really important and these banks can be funded by the governments to make them survive during difficult time periods. The film tells us the Government and the Law Enforcing authorities were really weak in putting up any system that would have led the bank to survive during such difficult times. The banks collapsed leading to further ...Download file to see next pagesRead More
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