External Stakeholders

External Stakeholders

Student’s Name

Institution

External Stakeholders

External stakeholders are those parties outside the organization who are affected by the activities of a business or affect the operations of a business. External stakeholder management is, therefore, an important role in a business organization. For a wealth management firm like Knightsbridge Wealth Management firm, the interests of its external stakeholders have to be taken into consideration. Its external stakeholders include its customers, its competitors, creditors, the local community it operates within, and the government. It is, therefore, important to manage the interests of external stakeholders to gain from their positive influence on the operations of the firm.

Knightsbridge customers are the reason for its existence. Without the demand for financial management services, then the company’s existence does not make sense. For this reason, their tastes and preferences dictate the kind of services offered by the firm. The firm also operates in a competitive environment. The firm, therefore, has to have a competitive edge through differentiating its products and offering customer-oriented services. The firm, however, has a responsibility to compete fairly, within legal limits. Like any other business, Knightsbridge also has creditors. A good relationship has to be maintained with lending banks and other service providers linked with the firm’s operations like utilities to have credit extended to it when it needs it.

The Australian government has a huge influence on the activities of the wealth management firm. Knightsbridge managers have to comply with regulations set for the management of financial institutions. Apart from the government, the institution is also a part of the communities it exists within. It has a responsibility towards the people of Central Sydney and the City of Adelaide, where its branches are located. Since the company exists within a society, it has a social responsibility towards the people. For instance, it has to employ from the locals or ensure its operations are not damaging the environment.

All institutions need their external stakeholders as much as they need their employees and shareholders. While a company fulfills the interests of customers, competitors, creditors, local communities, the government, and other external stakeholders, it also caters to its objectives, creating a co-dependent relationship. Knightsbridge can maintain this relationship through effective external stakeholder management.