So all most all the companies are affected by this crisis and in the high end there are the GK financial companies and non financial companies are also affected but the situation is not critical as financial institutes.
Concept of pressure groups in the context of organizational stakeholders
Who is a stakeholder in a company?
A stakeholder is a party who is interested in organization activities and affected, or can be affected by, it And there are internal and external stakeholders (Appendix 2) and they have different interests
Who is a pressure group of a company?
A pressure group is a group of people who have got together to promote a particular cause. It is also used to mean an interest group. These people may seek to influence political decisions and politics.
So in organizational context stakeholders if they are influenced to give a pressure or an identification to the organization itself they become pressure groups so it the duty of the management to identify the pressure groups and cater their needs in the sense build up a active and positive relationship with them.
Stakeholder mapping, Mendelow’s power & Interest Matrix.
A brief introduction on each stakeholder in the context of mendolows power and interest matrix.
Minimal effort (Both level of interest & Power is low)
They are the lowest interested and low power people in the organizational stakeholder group. There is no need to tell or inform them about what is going on. In here groups like general public and non financial institutes are totally away with the Gk situation.
In the GKCCCL case the general public do not know what is going on in the environment because the facts and data, news coming for them is not the truth at most of the times and the interest of the media regarding this case is very low
In any organization contract basis workers have low power and low interest in companies operations because they do not depend on a same company for a longer period of time though because of this financial fraud if GKCCCL is closed they do have other options so they also counted in to low interest and low power category.
- Out sourced service providers
organization out sourced service providers (cleaning, florist, etc) also have low power and low interest in companies operations because they do not depend on a same company which means that they take contracts and work for several companies at the same time though because of this financial fraud if GKCCCL is closed they do not want to worry because they just have an agreement in supplying services to GKCCCL so they also counted in to low interest and low power category
In the case of GKCCCL small scale investors of the company is also can be categorized in to low power and low interest group. as an investor ,depositor every one is interested in their related financial institution but in GKCCCL case because of the majority of investors have invested in a huge amount and there the small scale investors has no power at all In handling the situation so this has impacted in to their interest as well and dragged them down to low power and low interest group.
In the GKCCCL case the impact is straightly on the financial sector in sri lanka so nonfinancial institutes are not very much interest in the case they do not show any interest with the situation and they do not have the power over this case at all so thy have positioned in low power and low interest group.
Keep informed (interest is high & Power is low)
We must focus on this group well we have to move with the reasonability of the case advanced notice will give each more time for adjustment. specially Ceylinco group of companies ,Golden Key group ( financial institutes) ,Other credit card companies are highly interested in the situation but they have no power, or the power is limited by the external environment where they are restricted in involving in the situation. So we must keep informing them and keep explaining the situation.
- Ceylinco group of companies
In the GKCCCL case the mother company ceylinco consolidated is currently highly interested with the situation but their power in the case, involvement in the case is low where they position themselves in this cod rent, low power and high interest group.
In the case of GKCCCL Medium scale depositors of the company are also can be categorized in to low power and high interest group. as an investor, depositor every one is interested in their related financial institution but in GKCCCL case because of the majority of investors have invested in a huge amount and there the Medium scale depositors has low power at handling the situation their interest is high so we can dragged them down to low power and high interest group. So we must keep informing them and keep explaining the situation.
- Golden Key group ( financial institutes)
In the GKCCCL case the impact is straightly on GK financial institutes other than any group their interest over this case is high and because of the court case going their power over this case is low So we must keep informing them and keep explaining the situation. And try to keep them in low power and high interest group where we can handle them easily rather than going in to high power & high interest group.
In an organization staff is a key factor of its operations. As a main drive of a company they have a right to look in to its company’s performances so in here the non managerial staff of GKCCCL is highly interested in the situation but their power is low. But we have to handle them very carefully because they imposes a big threat of being shifted to high power and high interest group.
- Other credit card companies
Other credit cared companies are also shows a higher interest of the case where they’re industry is also moving towards a crisis because of their peer credit card companies operations so other credit card companies are also categorized under high interest and low power cod rend.
In the GKCCCL the only interested media group is news papers but in the srilankan situation the power of newspapers is relatively low comparing with other Medias. So news papers can also categorized under high interest and low power cod rend.
Keep involved (interest is low & Power is high)
In here GK‘s main focus should be make them satisfy with facts and information and keep them away from shifting to “Key players” as Gk Credit co. is not a registered financial institute and because of that a key player in the situation – the Central bank is acting here as along with the government an this category where a large and profitable consolidated, ceylinco has a good reputation along the years.
In a country in a financial case, or a crisis the main high power and high interest group is the central bank of that country but in GKCCCL case central bank is in high power and low interest cod rent because GKCCCL is not a registered financial institute under the central bank. So we can get them as a high power low interest group.
The main drive of a country, the central government also shows no interest in this case this is mainly because ceylinco consolidated is a large and profitable consolidated and it is currently contributing the countries economic development in a higher percentage so we can categorize the central government in to high power low interest group.
In GKCCCL case another high power group is the electronic media of the country. But an unrecognized condition has stopped media involvement in the case. So a high power electronic media can also be categorized in to high power low interest group.
- Golden key group (non financial institutes)
In the GKCCCL case the impact is straightly on GK institutes. But being the non financial institutes driving their businesses in healthcare & education other than any companies their interest over this case is low and because of the court case going their power over this case is high. So we must keep involving them and keep explaining the situation.
Key players (interest is high & Power is also high)
These stakeholders are the main drivers towards the “change” of the organization and the major opponents of the strategy initially their should be education/communication to build up a strong reliable relationship with them.
As this is a financial miss management (fraud) legal authorities are highly interested in the situation. Not in GKCCCl operations, because of this case they have undertaken to investigate on all srilankan financial institutes to stop a thing happen again
Rather than srilankan police this investigation is done by the Criminal investigation department of sri lanka they are the main responsible party in the case so they can be categorized into high power and high interest group.
- Chairman of Ceylinco consolidated Deshamanya Dr. Lalith Kotelawala
A leading business man in srlanka, and the chairman of ceylinco consolidated.
As well as the golden key group is a high interested and high powered person in the picture but now Lalith Kothalawala Chairmen of Celinco group has been remanded for allegation of Golden Key credit card fraud by the Mount Lavinia magistrate courts. His wife Mrs. Sisiliya Kothalawala (another director of GKCCCL) also been warranted by Mount Lavinia magistrate.
Court has ordered Mr. Kothalawala to repay 26,000 millions for the depositors of the Golden Key credit card with in 10 days. So Mr. kothalawala can be categorized into high power and high interest group.
- Golden key directors
- Key depositors
- Golden key depositors association
Conclusion
The Golden Key Credit Card Company Limited (GKCCCL) is a member of the Golden Key Group of Ceylinco Consolidated. The Golden Key Company Limited, as it was then known, was incorporated on June 3, 1977.
this brief document is about its stakeholder analisis and audit findings on GKCCL.
Appendix
Appendix 1
Mendelow,s power and interest matrix
Level of interest
Low High
Low
Level of Power
High
Appendix 2
Internal and external
Stakeholders Stakeholders.
