Skip to main content

What Roles Every Stakeholder Play in Strategic Management Process?


A municipal airport is considering letting larger planes land at its facilities which will bring added tourism. It will cause more noise and pollution. In this case the internal stakeholders would be the municipality, owners of the airline those who will use the airport, employees of that airline, employees of the airport.
External stakeholders would be the tourists/customers of those airlines. People living in that municipal area, government as they will collect tax and overall responsible for regulations, society at large, local businesses included. Shareholders of those airlines.
There are few points to consider before we decide that the municipal airport should be open to larger planes. The noise and the pollution as the planes will take off and land and the pollution would be from planes and the tourists might litter the area too.
So, the two committees we would need should represent the airlines' industry, who would use the airport and in the second committee, we would need a representative from the municipality, the representative who takes care of regulations, a representative from society who can speak for people who will suffer from pollution and noise.
The opportunities are to boost tourism, boost the local economy, increase tax collection for government and create jobs.
But the issues we would have controlling noise and pollution. If the tax amount would be enough to plant trees and employ workers to remove garbage so the environment is not harmed. If airlines can do something about the airplanes whey would fly, if they can find newer models which make less noise and if they can use biofuels so the pollution would be less, these are few points the committees would have to decide.

Integrating the external stakeholders into the strategic management process
In long term external stakeholders will be the group who will be benefited or affected. And if we decide to open this airport for bigger planes then making this sustainable in long term would need active participation from external stakeholders.
Shareholders need to see a profit in the long term which will generate wealth for them
The society needs to see tax revenue collection which the government would put in good use, building infrastructure, schools etc. People would want to make sure that there is no flight late in the evening or night and the pollution and noise would be in check.
Municipal will employ people to remove garbage and they will try to offset the pollution with planting more trees. The airlines would need to find a way to use airplane which makes less noise and if possible they would need to use biofuel.
The external stakeholders need to see their interest, how this project would benefit them, and yes, they should understand the tradeoff too. That what is at stake, but we can convince them if only we can establish that the upside is way more than the downside and the authorities will do enough to minimize the risks of pollution and noise.

Keeping stakeholders informed
Authorities need to work hard to measure noise and pollution. Setting standards and maintain them. In case of violation fining the airlines. The airline's owners, shareholder an be communicated using emails. The society can be informed using report of local newspaper or local news, sending flyers will information to each home. Local authorities should be responsible and accountable for this communication.
Proposed Optimal Solution
My proposal is there should be an oversight committee where we would have representatives from citizens, businesses, municipality and authorities to hold up regulations.
They should strictly regulate the timing of flights and push for usage of airplanes which make less noise and fly with biofuels.
Municipal representative should make sure that this project is generating enough revenue in tax that is being used to employ more people keep the area clean. Infrastructure is being built to promote tourism. And better schools are also being built.
Representative of citizens need to make sure the airlines are not violating any regulations. Locals are being able to use the airport to fly out. Municipality is still keeping the area clean and infrastructure and other things are being built with the tax money.
Regulatory body should make sure there is no violation of law, and what are the implications of the noise and pollution created by the airlines and how can those be reduced further. They should not impose anything so strict that the business becomes unviable.

Comments

Post a Comment

Popular posts from this blog

Question and Answer

      * These attacks consist of injecting malicious client-side scripts into a website and using the website as a propagation method is: These attacks consist of injecting malicious client-side scripts into a website and using the website as a propagation method is: XML External Entities Cross Site Scripting (XSS) Security Mis Configuration Injection * A security principle, that ensures that authority is not circumvented in subsequent requests of an object by a subject, by checking for authorization (rights and privileges) upon every request for the object is ____.   A security principle, that ensures that authority is not circumvented in subsequent requests of an object by a subject, by checking for authorization (rights a Complete Mediation Least Privileges Separation of Duties Weakest Link * ...
Post a Comment
Read more

What are the challenges Zara face to maintain it's growth?

Notably, Zara has a unique approach to handle changing demand, which has allowed the company to become widely successful and a leading business organization in the fashion retail industry, in which many corporations struggle to deal with fast-changing environments, operations, and inventory costs. The arrival of new trends forces retailers to adapt their collections, causing what James (2011) calls the Forrester or bullwhip effect. Zara relies heavily on outsourced manufacturing, even though most operations and inventory decisions and strategies are still held, taken, and based out on their headquarters in Spain. Every time an order is placed, all items are shipped to Spain for final design adjustments and inventory stocking. With the use of technology and collaboration with its store managers, the company can produce only what is currently trending, which results in a significant reduction of unsold items caused by the rapidly changing tastes of consumers in this fast-changing ind...
Post a Comment
Read more

How Toyota New Global Architecture (TNGA) revolutionize the automobile manufacturing industry?

Toyota New Global Architecture (TNGA) system was created to revolutionize the actual automobile manufacturing systems. TNGA aims to promote a massive transformation in Toyota's development processes by emphasizing in harmony between planning and design, which, when appropriately combined and managed, will increase the company’s efficiency (N.A., 2015). Toyota's TNGA system is revolutionary because it creates an even leaner way of designing and manufacturing its cars and establishes a new era of vehicle design and production. From a different perspective, TNGA is a revolutionary system not because it employs a modular approach; since companies like Nissan and Volkswagen already use modular systems in their production plants (Schmitt, 2015). It is revolutionary because it is disruptive and expands the traditional and legendary Toyota’s lean methodology to a different level (N.A., 2015). This new global architecture system is disruptive to the old Toyota Production System (T...
1 comment
Read more