CIMA E2 Syllabus A. Business models and value creation - Dealing with stakeholder conflict - Notes 6 / 9
What leads to a conflict?
Needs of different stakeholders always differ and can lead to a conflict because sometimes all stakeholders needs cannot be pleased at the same time.
Cyert and March have suggested 4 methods to deal with this conflict:
Satisficing - Negotiate and keep most stakeholders happy.
Sequential attention - Give each stakeholder a turn to satisfy their needs
Side payments - Compensation to a stakeholder for not satisfying their needs
Exercise of power - Most powerful stakeholders win
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Syllabus A. Business models and value creation
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