Q1
Primary stakeholders are those stakeholders who are directly affected by company’s activities, either positively or negatively. Primary stakeholders always have a close relationship with the company. For example, shareholders, employees, managers, suppliers and customers are in the primary stakeholder group. Secondary stakeholders stand for those who are indirectly affected by company’s operation or project. Secondary stakeholders always play an intermediary role but also have interest related to the company. For example, secondary stakeholder includes government agencies, policy makers, finance institutions and local board members. It is important for company to do stakeholder analysis and classify stakeholders into different groups. Different group are affected by company’s operations in different patterns (Goodpaster 1991). Primary stakeholders tend to be more greatly affected by company’s project; hence, primary stakeholders should be put into the first consideration priority when company makes decisions. Besides, company’s economic and human resource are scarce and limited, it is always impossible for company to allocate equal resources to all stakeholders, thus, company should put those who are directly affected by company and those who are closely related to company in the first priority (Kivits 2011). Stakeholder classification is used to help company identify the significance of stakeholders and attach different importance to different stakeholders.

Q3
Crisis management is the process in which an organization deals with events which negatively affect the organization or the stakeholders of the organization. Crisis has some main characteristics. Firstly, it is a threat to the organization as well as its stakeholders. Secondly, in a crisis, the time for organization to make relevant decision is quite short. Thirdly, without effective crisis