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Environmental Health Assessment-Stakeholder Analysis - Essay Example

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A consortium of investors is planning to set up a large industry in Kenya to satisfy the huge demand for electricity poles. The company proposes to use a technology involving use of hazardous chemicals, which has a potential to cause health and environmental problems…
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Environmental Health Assessment-Stakeholder Analysis
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Download file to see previous pages Stakeholder analysis is resorted to identify people, organizations, groups who will have a valid and legitimate interest and stakes in the projects being implemented and policies being developed. "Participation analysis - or stakeholder analysis as it is sometimes called - seeks to identify all persons, institutions, etc. involved in a project, in addition to the target group and the implementing agency, and speculates on their expected support or opposition to the program. This analysis is used at the preliminary stages of a project in order to incorporate interests and expectations of persons and groups significant to a project or program" (Participation Analysis, 1990).
The process of identifying stakeholders is very important for participatory analysis to be effective. There are various methods of doing this. J.M. Bryson (2003) lists eight thirteen different techniques of doing stakeholder identification and analysis. Here the method suggested in the source quoted earlier (Participation Analysis, 1990) has been followed to identify the stakeholders. They are listed below:
The new multibillion dollar industry proposed sees an opportunity to create a profitable venture through meeting a huge demand from KPLC. In view of the hazardous nature of the industry, the regulatory authorities in Kenya have asked the company to incorporate certain additional safeguards such as shifting the location away from the city, providing safety equipment to workers, monitoring their health regularly, installing water treatment plant. All this will mean both higher capital and operational costs. The company may have already factored these in its cost calculations. However there must be a limit to which they would agree for cost escalation. Any Risk Management plan must keep these concerns of the company to get a reasonable rate of return on investment and not push the company to incur cost beyond its bearing capacity.
KPLC who is the targeted buyer will benefit from procuring from a local manufacturer which would lower their procurement cost and in turn affect the performance of their company positively. KPCL's primary interest would be that the new company formed has competitive advantage over its current overseas supplier at all times. If at all at some point the newly formed company becomes non competitive, it will run the risk of going back to its earlier supplier and re-negotiating, possibly from a point of weakness. This may adversely affect the utility company and power distribution costs in the country.
Setting up a local industry will no doubt create direct and indirect employment. The local labor force will be a direct beneficiary. The labor is most likely to be organized into a labor union, possibly with wider industry linkage. The labor force and the supporting labor union will be an ...Download file to see next pagesRead More
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