Stakeholder Mapping (AQA A Level Business): Revision Note

What is stakeholder mapping?

• Stakeholder mapping is a strategic process used to identify and analyse individuals or groups that have an interest in a project or business

  • It takes into account the level of interest and degree of power stakeholders hold

  • It helps a business identify appropriate strategies for managing relationships with stakeholders

Stakeholder mapping

 Diagram analysis 

• Group A stakeholders have low interest and little power

  • The needs of these stakeholders can usually be ignored

  • However, the growth of social media means that the concerns of this group can be amplified more successfully than ever before

• Group B stakeholders have high interest but little power

  • This group needs to be kept informed to give them a sense of belonging and encourage their support

  • Little effort is usually required to achieve this - a newsletter or informative website may be enough

    • E.g. the local community

• Group C stakeholders have low interest but are powerful

  • Satisfying this influential group is important

  • These stakeholders must feel included, and their power must be acknowledged

    • E.g. the media. Businesses in certain sectors make great public relations efforts to keep the media "onside" through press conferences and media events

• Group D stakeholders have both high interest and a high degree of power

  • These are key players - they must be fully informed and satisfied

    • E.g. shareholders and employees

How stakeholder mapping influences business activity

• Tailored communication

  • Key stakeholders may receive detailed reports, formal consultation and direct meetings

  • Low-interest groups may only need a general annual update

• Resource allocation

  • Senior management time and budget for stakeholder engagement is directed in proportion to each group's position on the map, rather than spread equally

• Decision timing and process

  • Some strategic decisions require formal consultation with key stakeholders before they can proceed at all

  • E.g. A shareholder vote on a takeover, or a public planning consultation before airport expansion

• Risk management

  • Anticipating how each stakeholder group is likely to react to a controversial decision, such as store closures or restructuring, allows a business to plan its communication and timing to reduce the risk of backlash