Five Star has saved $4,800.00. There are two ways you can spend it and you can only afford one. Today you work out who has a stake in which one you choose, and what each of them wants.
Eleven sections, about an hour all up. One section is one sitting. Do that one and stop.
Three from the lessons so far. Have a go before you open them.
Five Star's pūtake is to make a profit, a living for you from doing hair well. Pūtake is spelled pūtake or puutake, never putake.
A stakeholder is internal if they are part of the organisation and in the room when the decision is made. You and Sanjay are internal.
An external stakeholder has a real interest in the decision without being in the room. Your clients, your landlord and your whānau at home are external.
Five Star relies on the landlord for the premises, and pays $600.00 a week for them. The landlord relies on Five Star for that $600.00 a week of rent income.
First, how the salon runs.
Five Star has saved $4,800.00, and you want to decide how to spend it. You have come up with two options and you do not have enough money for both. You can only choose one. Which one do you choose?
Option A goes looking for new clients. Option B looks after the clients you already have.
| Option A: fill the quiet days | Option B: refit the front | |
|---|---|---|
| Brings in new clients | ✓ | ✗ |
| Fills the quiet hours from Tuesday to Thursday | ✓ | ✗ |
| Adds a Saturday appointment | ✗ | ✗ |
| Makes the salon nicer for the clients you already have | ✗ | ✓ |
| Keeps the salon open the whole time | ✓ | ✗ |
| Needs nobody's agreement but yours | ✓ | ✗ |
| Leaves money for any unexpected repairs | ✓ | ✗ |
Neither option adds a Saturday appointment. You are the only person who can cut hair, and spending $4,800.00 once does not pay for a second stylist.
Option A is aimed at the people who are free on a weekday afternoon: night-shift workers, students, retired clients, and parents whose children are at school.
All stakeholders are entities, but not all entities are stakeholders.
The wholesaler is an entity: $28.00 leaves Five Star on every foil job, and a box of colour comes back. But you would not ring the wholesaler to ask whether to advertise or refit the front, so the wholesaler is not a stakeholder in the choice between Option A and Option B.
Choose stakeholders whose view Five Star would weigh, and leave suppliers out. The colour wholesaler and the power company are both suppliers.
Sanjay is a stakeholder.
The colour wholesaler is a stakeholder.
New flooring, new mirrors and new lighting are changes to somebody else's building, but a tenant does not make those changes alone. Option A changes nothing in the building, so Option A needs nobody's permission but yours.
So the landlord is a stakeholder in this decision, and a strong one. The landlord does not only hold a view about Option B: the landlord can refuse it. If you write about the landlord, write about the agreement Option B needs, not about the rent.
Employees, customers and whānau are the three groups the standard names as stakeholders. Choose the four stakeholders you write about from those three groups, plus yourself, and nobody can argue with them.
Avoid naming suppliers and service providers as stakeholders. The landlord is paid rent for the salon's premises, so a marker could treat the landlord as a service provider.
Sanjay, my clients, my whānau at home, and me.
The colour wholesaler, a supplier to Five Star.
Here are Five Star and the entities it deals with, with the answer marked on every box.
Every box gets a tick for entity.
But only three of the nine solid boxes get a tick for stakeholder. Your clients, Sanjay and the landlord each have an interest in what Five Star does with the $4,800.00. The other six do not.
You and your whānau are stakeholders too. They are the two dashed boxes. They are drawn differently because the solid boxes are the entities Five Star trades with, and Five Star does not trade with its owner or the owner's family.
Why are the other boxes marked stakeholder ✗? Press one to see why.
Before you can make a final decision between Option A and Option B, you need to consider the opinions of each of your stakeholders. That opinion is called a perspective.
The stakeholders often do not agree with each other, and the disagreement is what you write about. If everyone wanted the same option there would be nothing to weigh.
Tap a name to read what that person wants, and why.
Perspective:
A stakeholder's viewpoint, opinion, interest or concern about the choice in front of
you, before the choice is made.
A perspective is what they think and what they want, not what is true, and not what they would get out of it.
Here is how to write a good perspective in your case study.
These are eight sentences a student wrote under the heading Stakeholder perspectives. Only some of them are perspectives. Pick an answer and the reason appears underneath.
That sentence is a perspective: what Sanjay would rather have, and why. A perspective is a viewpoint, not a fact about the world.
That sentence is a fact, not a perspective. You already had that fact before you decided, and nobody's opinion appears in the sentence. Name somebody who wants the $3,400.00 spent that way, and say why.
“Sierra would rather spend the $3,400.00 on the website and the advertising, because a booking that arrives at 11pm is a booking nobody has to answer the phone for.”
That sentence is a perspective. “Worried about” is a concern, and concerns belong there: markers list viewpoints, opinions, interests and concerns.
That sentence is a fact, not a perspective, and this is the one that catches people. The sentence is about Sanjay and it sounds right, but it describes how Sanjay would benefit, which is a fact about the outcome, but not a perspective. Markers name this exactly: perspectives “are not factual statements such as advantages and disadvantages, or how stakeholder groups would benefit from the option.” Keep the floor and keep the reason, and put Sanjay's wanting in front of them.
“Sanjay prefers Option B, because a new floor is easier to stand on all day.”
That sentence is a perspective. “Prefer” is a wanting word, and it points at one option over the other.
That sentence is a fact, not a perspective. The sentence names an advantage of Option B, not anybody's viewpoint. To turn it into a perspective, say who cares how the salon looks, and why they care.
“Five Star's clients would rather have a pleasant area where they can relax while they wait for their foils to be completed.”
That sentence is a perspective, and an easy one to leave out: the owner is a stakeholder too.
That sentence is a fact, not a perspective. The sentence names a disadvantage, which is the other half of what markers rule out: perspectives “are not factual statements such as advantages and disadvantages”. Putting Sierra's name beside the cost does not turn the cost into something Sierra wants, and “Sierra wants to keep some money in the account for any unexpected repairs” shows the difference: that one is a want, and this one is a bill. Say the want.
“Sierra would rather not take on a new monthly bill out of the same profit.”
The things people ask at exactly this point.
Your Saturday regulars would not come on a Wednesday just because there is now a website. They work Monday to Friday, and Option A does not change which day they are free.
Option A reaches people who are already free midweek: a night-shift worker, a retiree, or someone who works from home.
A cheaper midweek price would also fill a quiet Wednesday, but the discount comes out of the $17.00 of profit on each cut and blow wave. Option A has no discount, so a discount would be a third option.
Yes, your clients are stakeholders, even if they never hear about the decision. A stakeholder has an interest in the decision, but nothing says they have to know about it.
That is what external means. Your clients will never see the $4,800.00, but they will notice whether they sit on new seating or the old bench.
Yes, two stakeholders can want opposite things, and usually two of them do. Option A goes after new clients and Option B looks after the clients you have, so the stakeholders pull in different directions.
Choose options that differ in more than cost, so the stakeholders want different things.
A website to bring in new clients, against a refit for the clients you already have.
Two websites that do the same job, one for $3,000.00 and one for $3,400.00.
No, you are not allowed to make the numbers up. Your assessment needs researched figures: real prices, real quotes and real rates. An answer with no dollar amounts in it does not meet the standard even if every sentence is sensible.
On this page the figures are handed to you already researched, so today you can spend the whole lesson on the people. When you do the real assessment you will go and find the figures yourself.
No, your view is not the decision. Your view is your perspective, and it gets weighed with everybody else's. You are a stakeholder in the decision, and you have a view before you decide: you would rather not empty the account.
The decision is what you end up doing. Your perspective is what you wanted going in. Those are two different things, and both are worth marks.
Read each sentence and work out what is wrong before you open the answer.
The problem. That answer is not a perspective. The sentence is about Sanjay and it is true, and it still describes how Sanjay would benefit, which is a statement about what happens, not about what Sanjay thinks.
A perspective is not a fact, such as an advantage, a disadvantage, or how a stakeholder would benefit from the option.
“Sanjay would rather Five Star chose Option B, because the floor in that room is lifting and Sanjay stands on it eight hours a day.”
Say what Sanjay would rather have, and why.
The person and the decision are the same, and now the sentence is a viewpoint.
The problem. The wholesaler does have a perspective: the wholesaler wants Five Star to keep ordering. But a supplier is not a stakeholder. Suppliers and service providers exist to make a profit, so an organisation does not weigh their perspective when it makes a financial decision, so this sentence does not give a stakeholder's perspective.
The wholesaler is an entity Five Star deals with every week. That is a different thing from a stakeholder, and this is the sentence where the difference costs you.
“Our clients' perspective is that they would rather book online, because some of them are free midweek but cannot get through on the phone.”
Use somebody with a shared interest in the organisation itself. Employees, customers and whānau are the three groups the standard names as stakeholders.
Every term here has a sentence that works and a sentence that does not, because that is where the difference actually shows.
A person or group with a shared interest in the organisation. A stakeholder is internal when the stakeholder is part of the organisation and helps make the decision, and external when the stakeholder has an interest in the decision without being involved in making it.
Every stakeholder is an entity; not every entity is a stakeholder. Money moves between Five Star and its colour wholesaler, so the wholesaler is an entity, but you would not ask the wholesaler what to do.
Suppliers and service providers are not stakeholders: they exist to make a profit, so their view would not be weighed. The common stakeholders are employees, customers and whānau.
A stakeholderSanjay. Your clients. Your whānau. And you. The owner is easy to leave off the list.
Not a stakeholder (but an entity)Your colour wholesaler. $28.00 leaves Five Star on every foil job and a box of colour comes back, but you would never ring the wholesaler to ask what to do.
A stakeholder's viewpoint, opinion, interest or concern, what they want, before anything is decided.
To write a perspective: which option would this person push for, why, and does your sentence contain a wanting word, wants, prefers, is worried about, is interested in, would rather? If not, you have probably written a fact or a benefit, and neither earns the mark.
Write this“Sanjay would rather Five Star chose Option B, because the floor is lifting and Sanjay stands on it eight hours a day.”
Not a perspective (but a benefit)“Sanjay would benefit from a new floor.” That is what Sanjay would get, not what Sanjay wants, and there is no wanting word in it.
Entity and stakeholder are the third pair of words with this shape: a small group sitting inside a bigger one. Here are all three pairs.
Both parts are about Option A: spending $3,400.00 on a website and advertising to fill the quiet days. Everything you need is on this page.
a.Write Sanjay's perspective on the two options, in your own words. One or two sentences.
Stuck? Which option would Sanjay push for, and why?
“Sanjay would rather Five Star chose Option B, because Sanjay is in that room eight hours a day and the floor that is lifting at the edges is the one Sanjay stands on, not the part the clients see.”
Rather is the wanting word, and the reason after because is Sanjay's own, not the salon's. That is what makes the sentence a perspective rather than a fact about the outcome.
b.Now write your whānau's perspective. They want something different.
“My whānau are worried about Option B, because Option B would leave only $200.00 in the account. They would rather the salon kept something back, since a bad month for the salon is a bad month at home.”
Notice that your whānau's perspective disagrees with Sanjay's. Two stakeholders pulling different ways is exactly what you want.
Go Sierra, go!
You worked out who has a stake in the $4,800 decision, and what each of them wants.