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Chapter 6 Networks and stakeholders

Chapter 6 Networks and stakeholders. Stakeholder relationships. Each organization is a customer to another organization in an industry’s value chain. Some organizations work closely together, coordinating and integrating their activities while others combine on a temporary basis.

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Chapter 6 Networks and stakeholders

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  1. Chapter 6 Networks and stakeholders Peggy Simcic Brønn

  2. Stakeholder relationships • Each organization is a customer to another organization in an industry’s value chain. • Some organizations work closely together, coordinating and integrating their activities while others combine on a temporary basis. • Organizations operate in partnership with varying degrees of strength, in order to achieve their goals. Peggy Simcic Brønn

  3. Networks • The relationship of any two organizations is contingent upon direct and indirect relationships of all involved organizations. Exchanges therefore take place in the context of a network of relationships. (Andersson, 1992) • Networks hold together partly through a pattern of interdependence and reciprocity. (Achrol, 1997) Peggy Simcic Brønn

  4. EXTERNAL LINKAGES OF AN ORGANIZATION Stockholders Government Regulators Boards of Director Community Leaders ENABLING Employees Unions Suppliers INPUT Associations Political Groups Professional Societies NORMATIVE LINKAGES FUNCTIONAL LINKAGES Organization Consumers Industrial Purchasers Users of Service OUTPUT DIFFUSED Environmentalists Community Residents Voters Media Minorities Women Other Publics

  5. Channels • Channel networks • Conventional • Vertical marketing systems • Channel network design • intensive distribution, selective distribution, exclusive distribution Peggy Simcic Brønn

  6. Vertical marketing systems • Administered • Contractual • Wholesaler-sponsored chains • Retailer-sponsored chains • Franchise • Manufacturer-driven retailer systems: Ford • Manufacturer-driven wholesaler systems: Coca Cola • Service-driven retailer systems: McDonalds • Corporate Peggy Simcic Brønn

  7. Network management • Cooperation • Power • Conflict • Channel network communications • Organizational communication Peggy Simcic Brønn

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