ICANBusiness, Management and FinanceBusiness and its Environment2025

QUESTION 2 Abuja Urban Transport Authority (AUTA) is a public sector entity established by the Federal Capital Territory Administration (FCTA) to manage urban mass transit services in Abuja. In recent years, AUTA has faced mounting pressure from multiple stakeholder groups. Environmental activists have protested against the carbon emissions from its ageing diesel bus fleet. Commuters have complained about unreliable services and overcrowding. The FCTA has directed AUTA to transition to compressed natural gas (CNG) buses within three years. Private transport operators (tricycle and mini-bus owners) view AUTA's expansion as a threat to their livelihoods. The Director-General of AUTA, Mrs. Funmi Okafor, has engaged a management consultant to help develop a stakeholder management strategy. Required: (a) Define the term 'stakeholder' and identify FIVE stakeholder groups of AUTA, classifying each as either INTERNAL or EXTERNAL. (8 marks) (b) Using Mendelow's Power-Interest Matrix, map FOUR of the identified stakeholders onto the matrix, explaining the appropriate management strategy for each. (10 marks) (c) Explain TWO reasons why effective stakeholder management is particularly important for a public sector organisation like AUTA. (7 marks) Total: 25 marks

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