Strategic Management - McInerney Holdings Essay

Strategic Management - McInerney Holdings - Essay Example The issue was oversubscribed 11 times. It is in this context that the faith of the stakeholder need be respected. It calls for proper stakeholder management. UK housing and construction market saw the phase of a big collapse in 1989, subsequently the company underwent a major restructuring, following which, the company is now known as McInerney Holdings plc. McInerney Holdings plc is listed on the Dublin and London Stock Exchanges with a total of 33,160,571 listed shares as on 31st December 2005 with stakeholders ranging from Banks and trusties to the general public. Besides this the employees, related companies, suppliers etc. too are also happen to be the stakeholders in the company as their interest too is in some way linked to the well being of the company. The impact of different people and groupings determine the direction of the company. Larger corporations, Banks, etc in particular play a significant role in chalking out the strategy for the company. These very groups require special attention in stakeholder management. There are of course needs of their direct owners, various other groups, like employees, public interest groups like environmental organizations, strategic partners, journalists or public monitoring bodies. Bank of Ireland Asset Management is the biggest stakeholder in the company with 10.51% of shares. Other sign ificant shareholders being Barry O'Connor, Bri Tel Fund Trustees Limited, Norwich Union Life Insurance Irl Ltd., Quinn Direct Insurance Ltd, Standard Life Investments, J.P. Morgan Chase & Co, Irish Life Investment Managers etc. The businesses operate within a complex system of interests and influences. While identifying the stakeholders the company must look beyond the formal structure of the organization. Therefore it is required to have a look at informal and indirect relationships too. The company management has to make a balancing assessment and evaluate all such external forces in order to adjust them with company's objectives. While taking crucial corporate decisions, it is necessary to know about the expectations of different stakeholders and to determine the extent to which they could and would exert their influence. Johnson & Scholes define stakeholder as, "Stakeholders are groups or individuals who have a stake in, or expectation of, the organisation's performance." Stakeholders all have power, someone has a formal power invested in a position of authority or it could be the social power of being able to persuade others to support or oppose the policies of the company. People with higher power could be the company's most useful supporters or most dangerous opponents, depending upon the prevailing dynamics. In case of McInerney Holdings plc we can do the power analysis to help us in prioritising our focus on stakeholders. To start with a comprehensive listing of stakeholders is prepared as the starting point for stakeholder mapping and analysis; Fig: Power-Interest Matrix in case of McInerney Holdings plc High Power Low Low Level of Interest High As is apparent from the above matrix the key players include Shareholders (small/ individual): He is more interested in having the higher rates of dividends or better price of its share in