Creating Value for Stakeholders

Abstract

Brief discussion of managing for stakeholders and the role this plays in achieving value creation and competitive advantage.

Excerpt

UVA-S-0169

January 11, 2010

CREATING VALUE FOR STAKEHOLDERS

A good strategist must learn how to think carefully about the creation of value for customers, suppliers, employees, communities, and shareholders. This expansive view is at the heart of our idea about value creation. You can use this idea to assess and integrate what you have learned in other courses and disciplines.

While every disciplinary perspective is about some piece of the value creation process in the more holistic sense, each pays special attention to a specific part of the process. One of the tasks of the strategy curriculum is to help you put these pieces together (Figure 1).

Figure 1. Role of each discipline in strategic creation of value for shareholders.

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Keywords: stakeholder management, strategy, strategic management, tradeoffs, strategic choice