71:02 311 72.3 K/s +128 strategic-management.pdf . . . Is the organization capable of international growth? THE STAKEHOLDERS AND THEIR INFLUENCE Since the strategic management process sets the activities of an organization, there are entities that can be affected by these activities. An example of this are the stakeholders. Stakeholders are any group or individuals who can affect or can be affected by the achievements of an organization's objectives (Freeman, 1984, as cited in Evans, 2015). An individual or a group is qualified to be a stakeholder if they have a legitimate interest in the organization's activities (Evans, 2015). Table 1 shows the summary of stakeholder groups in tourism and hospitality. Internal Stakeholders (within the organization) External Stakeholders (outside the organization) Board of directors Shareholders Employees collectively Creditors (existing and potential) Individual employees (ex. founding entrepreneur) Suppliers (existing and potential) Employees' representatives (trade unions, Customers (existing and potential) associations, etc.) Trade bodies (ex. Philippine Travel Agencies Functional business areas (marketing, finance, etc.) Association [PTAA]) Geographical areas of the organization (ex. Europe, Pressure groups (ex. environmental) Asia, etc.) Competitors (current and future; national and international) Government (legal, fiscal, and regulatory impacts) Private individuals International regulatory bodies (ex. International Air Transport Association [IATA]) Local community Table 1. A summary of stakeholder groups Source: Strategic Management for Tourism, Hospitality and Events, 2015. p. 36 As stakeholders are affected by organizational activities, they can, in turn, influence the organization's activities. Stakeholder influence is dependent on the stakeholder's position and ability to influence the organization. A model proposed by Mendelow (1991) ranks the stakeholders' influence on an organization's objectives depending on two (2) variables, which are as follows (Evans, 2015): Stakeholder power - the stakeholder's ability to influence an organization Stakeholder interest - the extent of the stakeholder's willingness to influence an organization. It then follows that Stakeholder Influence = Power x Interest. This means that a stakeholder is most influential with both high power and high interest and least influential with low power and low interest. 06 Handout 1 *Property of STI student. feedback @sti.edu Page 3 of 5 STI TH1802 MISSION-VISION AND QUALITY POLICY Mission-vision is a statement in which a firm or organization informs its stakeholders of what the firm or organization is all about, what it seeks to accomplish, and whom it seeks to serve after studying and gathering all the information on the external environment and internal organization. Confusion may arise on how to communicate the quality policy to employees given that a company also has a mission and vision statement. For clarity, here are the definitions of the three (3): Mission - It is a statement that expresses an organization's fundamental purpose which contains several components, such as: Company philosophy - the organization's set of beliefs o Company identity - what the organization is known for o Principal products/services - what the company offers to people o Customer and markets - who they intend to sell their products or services to Geographic focus - where they intend to sell their products or services o Obligations to shareholders - what they intend to offer to shareholders o Commitment to employees - how the company addresses the well-being of its employees. An effective mission statement should be: o Clearly articulated - specific, easy to understand, and has an impact on the behavior of individuals that deals with the organization Relevant - in line with the organization's history, culture, and shared values O Current - acts as guidance to the organization's future o Positive in tone - encourages commitment and provides inspiration to employees. Vision - It is the statement of an organization on what it aspires to be and what it will look like if it achieves its mission. O C