What is Stakeholder? Defination, Types and Examples

In simple words, anyone having any type of relation/interest in the project is known as a stakeholder. The term Software Project Stakeholder refers to, “a person, group or company that is directly or indirectly involved in the project and who may affect or get affected by the outcome of the project”.

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stakeholders

What is Stakeholder?

It is the process of a company that can impact or get impacted by a decision, activity, or the outcome of the software project. It is important to identify the exact requirements of the project and what various stakeholders are expecting from the project outcome.

Understanding Stakeholders

Stakeholders are either inside or outside the company. Internal ones are like employees or owners and are directly connected to the business. External ones are suppliers or the public that are the part of the company but still influenced by the actions.

Why Are Stakeholders Important?

Stakeholders are the significant for the several Reasons.

  1. In internal Stakeholders employees are more significant because they need to collaborate effective to achieve the company the goals.
  2. External Stakeholders are included the suppliers and governments can impact the business indirectly.

For Example, customer may change how they can buy, suppliers alter they make and deliver the products and governments can modify laws. overall the building the good relationship with both internal and external Stakeholders is essential for a business to success in the long run.

Different Types of Stakeholders

stakeholders-types

Type of Stakeholders

Internal Stakeholder

An internal stakeholder is a person, group, or company that is directly involved in the project. For Example,

  1. Project Manager: Responsible for managing the whole project. The project Manager is generally never involved in producing the end product but he/she controls, monitors, and manages the activities involved in the production.
  2. Project Team: Performs the actual work of the project under the Project Manager including development, testing, etc.
  3. Company: An organization that has taken up the project and whose employees are directly involved in the development of the project.
  4. Funders: Provides funds and resources for the successful completion of the project.

External Stakeholder

An external stakeholder is linked indirectly to the project but has a significant contribution to the successful completion of the project. For example,

  1. Customer: Specifies the requirements of the project and helps in the elicitation process of the requirement-gathering phase. The customer is the one for whom the project is being developed.
  2. Supplier: Supplies essential services and equipment for the project.
  3. Government: Makes policies that help in better working of the organization.

Issues Concerning Stakeholders

Companies often face challenges when they need and goals of different group involved knows as a stakeholder isn’t match up.

  1. The stakeholders want the company can make money as much they can possible.
  2. These can lead the company to make the money.
  3. The best ways to find balanced and meets the needs of all their stakeholders.

Stakeholders vs. Shareholders

  1. Shareholders are the group of people in a company, and all stakeholders having reasons to connected to the company Usually it’s a long time because they want something from the company. Shareholders are always interested in a money, but they can sell their ownership in the company and whenever they want.
  2. If a company is not doing well financially, the suppliers providing materials or service to the company may be affected and that reason the employees might lose their jobs, as per comparison the shareholder can sell their ownership in the company and avoid spending too much money.

What Is an Example of a Stakeholder?

When a business fails and can’t pay its debts in the specific order. The different groups of people get their money back.

  1. Firstly which one having full guarantee that will get paid then come others without a guarantee with the instruction which told by the stakeholders and last commonly stock owners, Unfortunately the common stock owner having not gets that much.
  2. This situation shows that everyone which involved that having the rights.
  3. For example, the workers in the failed company might lose their jobs without receiving any extra payment.

What Are the Stakeholders in a Business?

Stakeholders in a business are anyone connected to how a company runs and whether it succeeds or fails.

  1. The owners both active and passive investors are the first group.
  2. Creditors like banks come next if there are loans.
  3. Employees and suppliers who depend on the company goods or services are also stakeholders.

Are Stakeholders and Shareholders are Same?

While shareholders matter, they’re not the only ones. Employees, Customers, Suppliers, Governments, and the public are also Stakeholders. These are a way to consider the wider range of people connected to a business.

Conclusion

Stakeholders are people or group of who care about how which organization perform. They can be inside the organization include the customer’s shareholders, communities and governments.