Stakeholders can be defined as “anyone who has an interest in what an organisation does” (Wright, 2001). These stakeholders can include governments, investors, political groups, customers, communities, employees and suppliers. It is important to keep stakeholders satisfied and gain their support in order to run a successful event. This will be further developed in this essay, with further recommendations in distinguishing and managing stakeholders. Stakeholder management is the process of identifying key stakeholders and gaining their support. Stakeholder analysis is the technique used after key stakeholders have been recognised to identify people who have to be ‘won over’ and kept satisfied. All stakeholders should be sorted according to their impact on the event and actions taken, and also the impact that the event will have on them.
Stakeholders that have a big impact on the event include sponsors/investors, and stakeholders that are heavily affected by the event include the host community and those living in the area. Once the importance of the stakeholders is identified, a table can be made to express how to manage each stakeholder. The placing of each stakeholder is based on their power and interest. The way they will be managed can range from ‘monitor’ – which would apply to stakeholders that have littler power or interest in the event, to ‘keep informed’, ‘manage closely’ and ‘keep satisfied’ which is the action for those with the highest level of power and interest in the event such as investors. It is important to manage stakeholders closely. Freeman (1963) defines them as “those groups without whose support the organisation would cease to exist”.
Without the support of a range of stakeholders, the event would not be able to take place. In order to manage any issues that stakeholders may have, it is important to listen to the issue, understand it, and respond accordingly to try to find a solution. An event manager can use the opinions and recommendations of the most powerful can be used from a very early stage. They are most likely to give the greatest support and improve the quality of the event. Stakeholders should be managed accordingly to ensure the best quality of event is achieved using the benefits that each stakeholder offers. Management and analysis methods should be utilised to understand the importance, and actions can be taken to manage stakeholders accordingly.