Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi
Internal stakeholders are “people and organizations who are directly connected to a business and materially benefit or suffer as a result of its successes or failures” while external stakeholders “have an interest in the goods and services provided by a business to the extent of paying for them” (Gartenstein, 2018). Commonly, any entity who takes an interest in a business is a stakeholder, regardless their relationship with the business. This paper will consider partnership with stakeholders in a project and their levels of engagement.
In general, the role of internal stakeholders (shareholders, airline investors, and board of directors) is to contribute to the financial advancement of the airline. Airline employees and management are also internal stakeholders who focus on the daily operations of the carrier and the provision of customer service.
External stakeholders for the airline constitute passengers who are the driving force of the airline, without which carriers will cease operations altogether, and suppliers and ground handling services who provide services to the airline. Other external stakeholders include the government (for national carriers), who has a responsibility to ensure the growth of the airline, and regulatory bodies such as International Civil Aviation Organization (ICAO) and International Air Transport Association (IATA) who ascertain that airlines abide by acceptable standards to promote safety, security and growth. The general community (municipal) does not form an intrinsic part of decision-making, voting and investment in the airline, however, like other external stakeholders, the airline’s consideration of allowing larger planes to land at its facility will attract tourists but create more noise and pollution which will adversely affect them.
Internal stakeholderswho could be part of the proposed project include shareholders, board of directors, investors and the management team while external stakeholderswho could be part of the project include the passengers, airline suppliers and the community at large.
Two committees which would be part of a strategic management process to address the opportunities and costs of the project will be the Project management committee (project manager, management and employees), who will work within the project’s life cycle to mitigate risks and achieve goals; and the Sponsorship committee who are “financiers with the authority to allocate resources, enforce decisions and provide financial resources for the completion of the project” (Clarizen.com, 2017).
External stakeholders will be integrated into the strategic management process by “sub-contracting vital activities and involving them in planning and service programs” (Harrison & St. John, 1996). Also, the appointment of influential external stakeholders can help to break any barriers between internal and external stakeholders, thereby instilling their confidence in the potential benefits of the project- employment opportunities, trade ties and economic growth.
At the onset, all stakeholders will be informed about the proposal and the steps taken to reduce noise and pollution. In the course of planning, selection, implementation and evaluation of the strategy, key communication channels would include seminars and presentations, face to face meetings, telephone and conference calls, websites, newsletters, emails and blogs. The channels will provide regular feedback, progress, expectations and performance metrics for the project to ensure full commitment and ability to meet deadlines.
In conclusion, an optimal solution for success is to “involve stakeholders at the start of the project to reduce, uncover and mitigate any risks” which are associated with projects (Schoenhard, n.d.). The project life cycle will be managed effectively by identifying stakeholders who will be partners, assigning specific roles to the project team, allocating resources and generating extra funds where required, communicating regularly with all stakeholders and maintaining transparency before, during and after the project to keep all stakeholders content.
References:
Clarizen.com. (2017, December 19). Who are Project Management Stakeholders? Retrieved from https://www.clarizen.com/project-management-stakeholders/
Gartenstein, D. (2018, October 25). What is an External Stakeholder? Retrieved from https://bizfluent.com/info-12050930-external-stakeholder.html
Harrison, J., & St. John, C. (1996). Managing and Partnering with External Stakeholders. The Academy of Management Executive (1993-2005), 10(2), 46-60. Retrieved from http://www.jstor.org/stable/4165323
Schoenhard, L. (n.d.). 4 Ways Stakeholders are important to a Project. Retrieved from https://proficientlearning.com/4-ways-stakeholders-are-important-to-a-project/
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