Answer to Question #160385 in Economics for Kunal Singh

Question

R is a high class hotel situated in a thriving city. It is part of a worldwide

hotel group owned by a large number of shareholders. Individuals hold

the majority of shares, each holding a small number, and financial

institutions own the rest. The hotel provides full amenities, including a

heated swimming pool, as well as the normal facilities of bars,

restaurants and good quality accommodation. There are many other

hotels in the city, all of which compete with R. The city in which R is

situated is old and attracts many foreign visitors, especially in the

summer season.

Who are the main stakeholders with whom relationships need to be

established and maintained by management? Explain why it is important

that relationships are maintained with each of these stakeholders.

Answer 1

There are four types of stakeholders: users, governance, influencers, and providers which all together go by the acronym UPIG.

1) Users are customers, most of them are foreign visitors.

2) In the group of governance, stakeholders belong to auditors, regulators, and health and safety executives.

3) In the group of influencers as stakeholders belong to trade unions and lobby groups as they are known for having the capability to impact a project’s track and protect and improve the outcome.

4) The group of providers can cover a larger number of profiles also including shareholders, business partners, temporary contractors, catering staff, and anyone else who provides resources to the project.