The dynamic nature of the business environment calls for managers of the twenty-first century to critically analyse their business environment for them to formulate and execute a highly competitive strategy that will aid the survival, growth, and profitability of their organisations.

Required:
a. List and explain briefly FIVE external stakeholders. (10 Marks)
b. Explain briefly the following concepts:
i. Strategic alliance
ii. Matrix organisation
iii. Span of control
iv. Supranational bodies
v. Share awards (10 Marks)

(a)
External Stakeholders Include:

  1. Lenders
  2. Suppliers
  3. Government
  4. Customers
  5. Local communities

(b)
i. Strategic Alliance: A strategic alliance is an arrangement in which multiple companies share resources to pursue joint strategies.
ii. Matrix Organisation: A matrix organisation is a structure that employs a multiple command system, integrating various hierarchical layers of management.
iii. Span of Control: Refers to the number of subordinates directly managed by a superior.
iv. Supranational Bodies: Organisations that oversee multiple countries, such as the European Union (EU).
v. Share Awards: Share awards refer to the allocation of shares to employees or other parties as part of compensation or incentives.