Public Issues & Their Significance in the Modern Corporation

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  • 0:01 Public Issue
  • 0:33 Performance-Expectations Gap
  • 1:13 Environmental Analysis
  • 3:14 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
In this lesson, you'll learn how corporations use environmental analysis and competitive intelligence to keep abreast of public issues and why this is important to keeping their stakeholders satisfied.

Public Issue

Companies need to be aware of potential public issues that could affect their financial condition. Stakeholders do not want to discover that their company is suddenly struggling to survive. What can a company do to prevent problems from developing with their stakeholders?

In this lesson, you will learn how companies can monitor public issues and prevent problems. A public issue is any issue that is of mutual concern to an organization and one or more of its stakeholders.

Performance-Expectations Gap

Most public issues develop due to a performance-expectations gap, which is inconsistency between what stakeholders expect and what an organization's daily performance is in the workplace. Companies need to identify any gaps as soon as possible in order to solve issues quickly in order to not have to deal with unsatisfied stakeholders.

N&N is a candy manufacturer that is publicly traded on the stock market. They have established ways to monitor public issues and uncover gaps that could affect their organization. Let's take a look at their plan.

Environmental Analysis

N&N's managers first effective way to monitor public issues is to use environmental analysis in order to attain information regarding external issues, threats and trends, so they can form an overall strategy that eliminates threats and focuses on developing opportunities. N&N uses eight strategic radar screens (the customer, competitor, economic, technological, social, political, legal and geophysical environments) to give managers the ability to research and glean information regarding their business environments from each of the sectors.

N&N also uses competitive intelligence to glean information about their competitors in the marketplace. This information usually contains specific competitor's future plans, decisions and operations. For example, N&N has come across some key information through the intelligence reconnaissance and radar screens that will change their business plans and avert stakeholder conflict:

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