This theory maintains that the objectives of the firm should be derived by balancing the conflicting claims of the various 'stakeholders' in the firm… - Igor Ansoff

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This theory maintains that the objectives of the firm should be derived by balancing the conflicting claims of the various 'stakeholders' in the firm: managers, workers, stockholders, suppliers, vendors. The firm has a responsibility to all of these and must configure its objectives so as to give each a measure of satisfaction. Profit which is a return on investment to the stockholder is one of such satisfactions, but does not receive special predominance in the objective structure,

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About Igor Ansoff

Igor Ansoff (December 12, 1918 – July 14, 2002) was a Russian American applied mathematician and business manager. He is known as the father of strategic management.

Also Known As

Alternative Names: Harry Igor Ansoff H. Igor Ansoff

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The stakeholder concept was originally defined as "those groups without whose support the organization would cease to exist." The list of stakeholders originally included shareowners, employees, customers, suppliers, lenders and society. Stemming from the work of Igor Ansoff and Robert Stewart (in the planning department at Lockheed) and, later Marion Doscher and Stewart at SRI, the original approach served an important information function in the SRI corporate planning.

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Ansoff (1965) gives only some indication of what he means by environment. This can be explained by Ansoff's classification of decisions into strategic. administrative and operating decisions. He (1965, p. 8) defines these types of decision as follows:

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