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This document discusses two approaches to stakeholder management: 1) The zero-sum game approach, where one stakeholder's gain results in another's equal loss, so the overall benefit is zero. Examples include gambling and stock trading. 2) The symbiosis approach, where stakeholders have interdependent relationships and mutually benefit each other, resulting in a positive sum gain. This mirrors biological symbiosis and is preferable to a zero-sum game.

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Nofel Ameen
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46 views

Assignment # 1

This document discusses two approaches to stakeholder management: 1) The zero-sum game approach, where one stakeholder's gain results in another's equal loss, so the overall benefit is zero. Examples include gambling and stock trading. 2) The symbiosis approach, where stakeholders have interdependent relationships and mutually benefit each other, resulting in a positive sum gain. This mirrors biological symbiosis and is preferable to a zero-sum game.

Uploaded by

Nofel Ameen
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Strategic Management

Assignment # 1




Submitted to:
Sir Syed Nawab


Dated:
25/08/2014




Nofel Ameen
Registration No. Awaited
Two Approaches of Stakeholder Management Approaches

Zero Sum Game
It is defined as the situation in which one persons gain is equal to another persons loss, therefore the
net change in the overall wealth or benefit is zero. Usually Zero sum game are found in game theory, but
are less common than Non Zero Sum Games.
Gambling, and Poker are common examples of Zero sum games; since in these games the amount of
games won by players equals the combined losses of the others. In case of Financial Markets Trading of
Stocks is relevant example of Zero Sum Game.
In General Zero Sum Game is the Opposite of WIN WIN Situations.




Symbiosis
The Word Symbiosis is defined as any entity that has interdependent relationship with each other. In
business management Symbiosis is used for Stakeholders, since they are usually ought to be
interdependent on each other, in order to attain the objective of having mutual benefits. Hence there is
a positive sum gain from the corporation.
This term is commonly used in biology which explains the relationship between two entities that need
each other to continue and grow.

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