What Are Stakeholders?

Stakeholders encompass individuals, companies, or associations that have a vested interest in investing in, participating in, or overseeing your business. Each stakeholder contributes uniquely to your business and seeks to benefit from it.

What is a Stakeholder Analysis?

A stakeholder analysis serves as a systematic approach to identifying your stakeholders and evaluating their interests and influence on your brand. This analytical tool is invaluable for grasping the expectations and needs of your stakeholders, enabling you to prioritize them based on their value, power, interest, and relationship with your business.

Benefits of Conducting a Stakeholder Analysis

Carrying out a stakeholder analysis offers numerous advantages for your business, including:

• Understanding Stakeholder Needs: It allows you to clarify your stakeholders’ requirements, preparing you to address them effectively when necessary. Running a business entails minimizing unforeseen challenges, and a stakeholder analysis equips you to confront potential issues proactively.
• Prioritizing Stakeholders: This analysis helps you categorize stakeholders according to their significance and influence, allowing you to focus on the most critical ones first.
• Expanding Understanding: It deepens your awareness of who your stakeholders are and their expectations and concerns that may impact your operations. This is especially pertinent for influential stakeholders like regulatory bodies and government agencies that impose guidelines and standards that must be adhered to.
• Visualization Tool: The analysis provides a clear representation of how stakeholders are interconnected, which is particularly beneficial for visual learners.
• Identifying Limitations: It aids in recognizing constraints such as licensing, funding, and time.

External Stakeholders

External stakeholders are those who are not part of your business’s internal operations but can still affect it. They include:

• Customers
• Suppliers
• Banks
• Government entities
• Advocacy groups that influence your operations
• Social media influencers engaged for product promotion
• Retailers providing wholesale goods
• Competitors

Internal Stakeholders

Conversely, internal stakeholders are individuals or organizations that directly influence your brand’s products, services, and decisions, which include:

• Trade unions
• Managers
• Shareholders
• Employees

Value Exchange in Stakeholder Analysis

A key aspect of stakeholder analysis is the 'value exchange' concept, where you evaluate what each stakeholder brings to your brand and what you reciprocate. This mutual exchange, whether in resources, guidance, or services, clarifies the importance of each stakeholder and sets clear expectations. Periodically reviewing this section helps you determine whether to maintain or reassess relationships with stakeholders.

Example of Value Exchange:

For instance, consider my skincare serum product. Below, I illustrate the value exchange involved with various stakeholders.

Power vs. Interest in Stakeholder Analysis

Additionally, a component of stakeholder analysis includes assessing 'power vs. interest' among stakeholders. This evaluation aids in identifying which stakeholders hold significant influence over your business and which ones should be monitored closely.

The following graphic serves as a useful tool to categorize stakeholders by their influence, allowing you to determine how to manage them effectively:

• Keep Satisfied
• Manage Closely
• Monitor with Minimum Effort
• Keep Informed

YouTube Video: What is a Stakeholder Analysis?

Gain insights into the concept of stakeholder analysis and its importance in leading successful projects. This video provides foundational knowledge for conducting an effective analysis.

YouTube Video: How to Conduct a Stakeholder Analysis

Learn how to integrate stakeholder analysis into your strategic planning processes with this informative video. It offers practical steps to ensure comprehensive stakeholder engagement.