MN3141 ZB
MN3141 MARKETING MANAGEMENT – BY MS MABEL TAN
ASSIGNMENT 1 TASK SHEET
Please undertake the following PYP question that has been discussed in class below and
submit this in the same Word document.
You would benefit most from the practice if you would review the related chapter and/or
class recording, before making your best-effort attempt on the selected PYP essay.
From the UOL 2021 and 2022 Exam Paper - Each answer must not exceed 750 words.
Anything beyond 750 words will not be read. The word limit is to discourage spending
beyond the 3 hours expected time/effort by producing excessively lengthy responses. Any
citations, references and direct quotations citations/references are included in the word
count. Any figures, graphs or tables are excluded from the word count.
CH 3 MARKETING ENVIRONMENT
2022 Zone B
Question 7
Energy companies in some countries are under pressure to sell businesses they own which
are involved in the extraction, refining and sale of oil and gas products.
a) Identify and describe four different stakeholders whose interests the energy companies
may need to address. (10 marks)
b) For three of these stakeholders analyse how power, legitimacy and urgency could be
used to assess their salience to the energy companies. (15 marks)
Name: Aloysius Nicholas Appadurai
Date: 280923
Ans: a) 4 different stakeholders are latent, definitive, discretionary and dominant
stakeholders.
Discretionary stakeholder who only has 1 legitimacy like NGO (non government
organisations) or environmental activists. NGO s concerned with environmental protection
climate change mitigation, often engage in campaigns and lobbying to advocate for stricter
environmental standards.
Discretionary stakeholders have no powers to influence marketers such as NGOs which are
involved and concerned about the environment.
Definitive stakeholder like UN climate change conference parties or the government.
concerned about national carbon emission level which is an environmental concern.
Government publics such as regulatory bodies are keen on environmental sustainability and
public safety.
Dominant stakeholder like the shareholders who are informed of business to keep or sell
business as well as involved in extraction, refining and sale of oil and gas products.
Shareholders of the company who will incur loss.
Investors and shareholders want financial return and long-term sustainability. They want
energy companies to make profitable decisions when considering environmental, social and
governance (ESG) factors.
Latent stakeholders like employees if there might be a change of employers or change of
jobs for employees in oil plants.
Employees (latent stakeholders) of the company who may get laid off if business gets sold.
Another group of latent stakeholders who are affected are consumers, who brought goods
and services of the company, as they will have to look for alternatives.
b) Government is a definitive stakeholder. It has the power to ask energy companies to sell
business even if its against the desires of these energy companies. Government can
introduce stricter emission standards or impose taxes to show that their power can
significantly affect operations of such energy companies.
Government has legitimacy; its claims to protected national interest are widely accepted to
be right, good and fair. This is to balance gas supply and prices.
Government also has urgency due to environmental reports and damage. It is time critical to
shut down operations. This is to avoid gas market collapse.
It has highest priority or salience as most resources spent by government to address issues
tend to be due to energy companies being responsible.
Employees affected by operations of extracting and refining by oil companies.
They have no power as they cannot directly affect decisions of energy companies. Influence
on job positions not secure.
Employees have no urgency. assumption is local government will take over extraction and
refining operations. claims by employees seen as non urgent.
Employees have legitimacy. Claims to accept their jobs and income are social accepted to be
right, fair and just.
Shareholders can be differentiated by their power and legitimacy. energy companies are
likely to prioritize minimising losses while having to deal with obligatory issues only. Hence,
stakeholders with both power and urgency attributes would be first concern of these
companies, such as government, legal issues (definitive or dangerous). Given nature of this
industry, these companies would already have pre existing issues with dependent
stakeholders. However, so long as they are lacking power to emphazise change, it would be
of a lower priority as profit is greater than costly green approaches.