Influence of Stakeholders in Management at General Motors - Dissertation Example

It further gives the historical development of the General Motors company. How it started, what made it successful, and how poor stakeholder management led to its eventual downfall. . The fifth chapter is a discussion that outlines lessons learnt from each stakeholder interaction and explains how organizations can capitalize on these lessons to manage their stakeholders in a better way.

This involves the prediction of the outcomes of each interaction thereby making the right decision to avoid negative outcomes. Chapter six is the conclusion consisting of recommendations for further research on the topic of stakeholder management. It also gives a summary of new insight gained on the topic. Lastly, we have the reference list on the last page. Chapter 1: Introduction and rationale Today, we are living in a highly dynamic and competitive business climate. Businesses that fail to adapt to the changing climate are at the risk of stagnating and being driven out of the industries.

To stay on top of the game, organizations are using different strategies that keep them ahead of their competitors. One way that has been seen to be effective in achieving this has been the management of stakeholders. There are different groups of stakeholders that influence management decisions. How these different stakeholders are treated can affect an organization either positively or negatively( Muller, 2008: 32). The stakeholders are the people who have an interest in an organization. These stakeholders include the shareholder's employees, competitors, suppliers, customers, and the community in the region where a business is located.

The shareholders have been recognized as the most important stakeholders in an organization. This means that the management should always give the shareholder's interest priority in case they are in contradiction with the interests of other stakeholders. Nevertheless, this does not mean that other stakeholders have no prominent impact on a firm (Ghosh, 2005:219). It is important for the management to understand how each of the stakeholders affects it and use this information in making sound decisions.