The company management has to make a balancing assessment and evaluate all such external forces in order to adjust them with company's objectives. While taking crucial corporate decisions, it is necessary to know about the expectations of different stakeholders and to determine the extent to which they could and would exert their influence. Johnson & Scholes (1999) define stakeholder as, "Stakeholders are groups or individuals who have a stake in, or expectation of, the organisation's performance." For any organization to work, all the stakeholders have to pool their efforts. Terry & Franklin (1994) define management as 'a distinct process consisting of activities of planning, organizing, actuating and controlling performed to determine and accomplish stated objectives with the use of human beings and other resources'. Different organisations have different sets of stakeholders, whose nature and composition varies depending upon the nature of business. For example the Arsenal Football Club, besides being a soccer club is a public limited company in itself. As football club, its main stakeholders are, the players, the spectators, football fans, the club administrators etc. But as a plc, a broader array of stakeholders comes into picture. The Arsenal Holdings plc manages stadiums, matches, football teams, online TV channel, credit card business, sports academies, strategic partnerships with host of other organizations etc. Therefore the company has stakeholders from different corners of the society in general. The Arsenal Football Club started off when a group of workers at the Woolwich Arsenal Armament Factory decided to form a football team in late 1886. The club has now transformed into a full fledged company organizing different types of activities. The recent half yearly financial results for the company indicate an impressive growth rate with group turnover increasing to GBP100.8 million (2005: GBP57.0 million) as a result of higher gate and match day revenues at Emirates Stadium and sale of a property development site at Drayton Park1.
Similarly, British Petroleum (BP) is a leading oil and gas company. The company's operations include the exploration and production of gas and crude oil, construction and mining, manufacturing and transportation. Besides this the company also has a network of subsidiaries engaged in the chemicals, power and renewable energy sectors. The company maintains leading brands like BP, AM/PM, Aral, ARCO, Castrol etc. With operations spread over six continents in about 100 countries, the company maintains stakeholders in many forms and profiles. The humble beginning of BP can be traced back to 1901 when William Know tried to explore oil in Persia. But it was not before 1908 that the first commercial oil discovery was made in the Middle East by BP (Datamonitor, 2006). In 1935, the company prospered and was renamed the Anglo-Iranian Oil Company. Similarly, exploration expanded into North America (mainly Alaska), South America, Africa, and Europe. The war effort resulted in the British government becoming a shareholder in the company, an association which went on till 1987.
Any organization is managed by soliciting crucial support and guidance from respective stakeholders and by taking care of different factors affecting the functioning of an organization. A coordinated approach is required for taking care of all the