In any one strategic decision, the interests of one stakeholder group can conflict with another.

Question

Quizplus · Accepted Answer

Since different stakeholder groups have different needs, motivations, and goals, it is common for their interests to clash with each other while making strategic decisions. For instance, the decision to raise the price of a product may benefit the shareholders by increasing profits, but it may harm the customers by reducing affordability. Similarly, introducing cost-cutting measures may please the investors, but it may upset the employees who may face job cuts. Therefore, managers need to balance and prioritize the conflicting interests of stakeholders to make decisions that benefit the organization as a whole.

In Any One Strategic Decision, the Interests of One Stakeholder