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organisation's continuation and growth
. Management and employees have a special interest 
in the organisation's continued existence. 
(b) 
Individual interests and goals
. Managers and employees have individual interests and goals 
which can be harnessed to the goals of the organisation. 
Internal stakeholder 
Interests to defend 
Response risk 
Managers and 
employees 

Jobs/careers 

Money 

Promotion 

Benefits 

Satisfaction 

Pursuit of 'systems goals' rather than 
shareholder interests 

Industrial 
action 

Negative power to impede implementation 

Refusal to relocate 

Resignation 
3.2 Connected stakeholders 
If management performance is measured and rewarded by reference to changes in 
shareholder value
then shareholders will be happy, because managers are likely to encourage long-term share price 
growth. 
Connected stakeholder 
Interests to defend 
Response risk 
Shareholders (corporate 
strategy)

Increase in shareholder wealth, 
measured by profitability, P/E 
ratios, market capitalisation, 
dividends and yield 

Risk 

Sell shares (eg to predator) or 
boot out management 
BPP Tutor Toolkit Copy

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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT 
 
12
 
Bankers (cash flows)

Security of loan 

Adherence to loan agreements 

Denial 
of 
credit 

Higher 
interest 
charges 

Receivership