Museum of London: Corporate Governance and Stakeholder Evaluation

This report provides a comprehensive analysis of the Museum of London, beginning with an overview of its history, strategic objectives, and efforts to improve sustainability. It examines the museum's financial operations, including funding sources and expenditures, as well as its corporate governance structure. The report then delves into stakeholder analysis, defining and classifying key stakeholders such as staff, volunteers, trustees, and the government. It applies Mendelow's theory to assess the degree of interest and power of these stakeholders. The report evaluates current issues that may impact stakeholder interests and power, concluding with a summary of the museum's operations and strategic considerations. The report highlights the museum's role as a major tourist attraction, its focus on engaging visitors, and its commitment to ethical practices and financial transparency. This report is contributed by a student to be published on the website Desklib.

Museum of London

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of the history of Museum of London..........................................................................1
Identification of strategic objectives of the Museum of London.................................................1
Outlining of the way in which Museum of London is improving its sustainability....................2
......................................................................................................................................................3
Acknowledgement of the way in which organisation operates financially.................................3
Overview of corporate governance..............................................................................................4
Conclusion...................................................................................................................................4
TASK 2............................................................................................................................................5
Definition of a stakeholder...........................................................................................................5
Classification and mapping of key stakeholders of Museum of London.....................................5
Synthesis of theory to demonstrate the degree of interest and power..........................................5
Evaluation of interest and power of key stakeholders of Museum of London............................6
Current issues that may impact the interest and power of stakeholders......................................7
Conclusion...................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Museum of London is one of the main tourist places in United Kingdom which are
generating higher revenues for the nation. Its architect is designed by Philip Powell and Hidalgo
Moya. This report is based upon the detailed analysis of Museum of London (Bedford, 2016).
This assignment covers various topics in context of the destination. These are overview, strategic
objectives, improvement in sustainability, acknowledgement of financial operations, corporate
governance etc. Along with this, classification of stakeholders, synthesis of theory to
demonstrate degree of interest and power, evaluation of these elements and identification of
current issues which may affect key stakeholders are also covered under this project.
TASK 1
Overview of the history of Museum of London
Museum of London is located in the one of the most beautiful cities of United Kingdom
which is London. It is close to Barbiican Centre and established in year 1976. Its director is
Sharon Ament and around 700000 visitors visit it every year. The design of it was made by
Hidalgo Moya and Philip Powell and they used innovative approach for the same. For its
redevelopment around 20 Million pounds were invested and all the processes of it were
completed in mid of year 2010. It tells the story of London and people who are living there from
1666 The Great Fire Day to current day. It is one of the biggest charitable institution which is
funded by different organisations and Londoners. In year 2003 the it opens in a Grade I listed
warehouse which was established in Canary Wharf near to river Thames. In 2015 the
organisation has announced to move to a new museum in a new location which is Smithfield
general Market. The estimated year of its opening is 2021 (Overview of Museum of London,
2019).
Identification of strategic objectives of the Museum of London
All the strategic objectives of Museum of London are as follows:
 One of the main aim of it is to reach more people in order top provide them information
regarding history of London.
 Engaging all the school children so that it can become better known.
 It has also an objective of standing on its own feet by stretching thinking and becoming
more popular all around the world.
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From the annual report of the organisation it has been identified that organisation is close
to attain all its objectives. In 2017 and 2018 more than 991000 tourists have visited it and every
year the percentage is increasing by 5%. In order to engage people different activities such as
outreach programs, touring exhibition and off-site events are conduced by Museum. It has
resulted in engagement of 130000 new people (Annual report of Museum of London, 2018).
Different pertinent trends which are followed by the Museum are as follows:
 Museum of London can follow the trend of artificial intelligence within it. For this
purpose, robots could be used in Museum who can help visitors to gather detailed
information regarding all the things available within it.
 Immersive exhibitions is also a pertinent trend which is followed by Museum of London
in which huge artworks are displayed that attracts large number of customers.
Outlining of the way in which Museum of London is improving its sustainability
Museum of London is highly focused with the improvement of its sustainability. For this
purpose different ways are adopted by it. All of them are listed below:
 It remains committed to the improvement of London's environment by focusing upon its
operations that all of them are not harming it.
 Key step which is taken by Museum of London is energy management which can help
the organisation to increase its efficiency of energy (Area of activities of Museum of
London for sustainability, 2018).
 Different projects to upgrade its aging infrastructure is also one of the key ways which
are followed by it to attain sustainability. The evidence of its sustainability activities is as
follows:
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Illustration 1: Area of activities of Museum of London for sustainability, 2018
(Source: Area of activities of Museum of London for sustainability, 2018)
Acknowledgement of the way in which organisation operates financially
Currently Museum of London is receiving funds from different organisations and
individuals all around the United Kingdom. The amount of Endowment funds for year 2018 was
around 1762 and for 2017 the amount of it was 1767 pounds. Restricted income funds for both
the years are 7807 and 8748 respectively. It has also received designated funds of around 28560
for 2017 and 27194 for 2018. From donations, grants and legacies organisation has received
15884 pounds for 2018 (Ch'En, 2015).
In order to raise funding from different sources organisation has spent 2491 pounds in
year 2018. On charitable activities more than 20000 pounds were invested by Museum of
London. 4806 pounds are also spent by it in the new museum project which is going to be
completed in year 2021. Total expenditure of it at the end of 2018 were around 27822 and its
total incomes were 24379. In order to attain profits it is very important for the museum to control
its spendings so that funds could be used for infrastructure development of it.
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Overview of corporate governance
The director of Museum of London is Sharon Ament, Chief executive if it is Tim Marlow
and its chair man is Clive Bannister. The structure of the Museum is as follows:
It is governed by these three individuals who have the higher authority to take decisions
for the betterment and development of the organisation. All the objectives of it are established by
mutual understanding of all the three major authorities of it. While forming goals for future all of
them analyse current position and performance an then create them and pay attention towards
them in order to attain them successfully. There are various corporate practices which are
required to be adhered by it. All of them are as follows:
 Code of ethics is one of the main governance practices which are required to be followed
by all the organisations. Museum of London also adhere to it and make sure that all its
activities are performed in ethical manner (Clauss, 2017).
 As it is a national museums and funded by various organisations so according to it, it is
very important for Museum of London to keep detailed information of all the funding
because this information is required by stakeholders.
 Accounting standards are also followed by it in order to generate final accounts every
year so that profitability and financial position could be determined.
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All the above described points are considered by Museum of London and adhered that
helps it to build good image.
Conclusion
From the above discussion it has been evaluated that Museum of London is one of the
famous destinations in United Kingdom. Main objective of it is to enhance engagement of
Londoners and school children in order to aware them about history of London. In order to
improve its sustainability it is focusing on environment protection and investing in different
projects to enhance infrastructure. It received funding from different organisation and all of them
are managed properly to operate effectively (Gaimster, 2018). There are different practices of
corporate governance which are adhered by Museum of London. These are keeping track record
of financial information, code of ethics etc.
TASK 2
Definition of a stakeholder
Stakeholders can be defined as an individual or an organisation that has a stake in an
organisation. There are two main types of them internal and external. Both of them have right to
know about the actual position and performance of the enterprise so that they can make strategic
decisions (Hall and Swain, 2016). For Museum of London these are volunteers, trustees,
educators, staff members, audience, business leaders, donors, partners, government etc.
Classification and mapping of key stakeholders of Museum of London
All the key stakeholders of Museum of London are classified and mapped below:
 Staff members: All the employees who are currently working in Museum of London are
these stakeholders.
 Volunteers: The individuals who are working for the museum willingly and without any
compensation are known as volunteers.
 Trustees: All the key authorities of Museum of London who provides funding to the
Museum are considered as trustees.
 Donors: There are various individuals who donate their money to museum without
expecting anything in return, these are considered as donors.
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 Audience: All the individuals who are visiting the Museum are its audience and they are
mainly focused with watching such things which can help them to experience London in
ancient period.
 Government: The central authority of a city in which museum is situated is considered
as government. All the activities of Museum of London are monitored and controlled by
it (Leahy, 2016).
Synthesis of theory to demonstrate the degree of interest and power
In order to demonstrate the degree of interest and power of stakeholders the theory of
Mendelow could be implemented. It is also known as stake-holder's matrix. It is mainly used by
organisations for the purpose of determining the level of interest and power of different outsider
and insider parties in operations. Mendelow states that all the stakeholders do not have same
level of authority as it differ accounting to their nature. There are four main elements of it which
are analysed below in context of Museum of London:
 High interest and high power: All the stakeholders such as trustees are considered as
such stakeholders who have high interest in the performance of Museum of London and
they have authority to form decisions for its betterment (Lutz, 2015).
 High interest and low power: The stakeholders who are having very high interest in the
Museum of London and have very low authority to formulate decisions are considered as
the part of this element. These are staff members of the organisation as they do not have
right to form decision but they have interest in the position of it as their compensation
depends upon it.
 Low interest high power: The authorities who do not have any interest in the
performance and position but they have authority to formulate decisions are such
stakeholders. Government is one of them as it imposes regulations which are required to
be followed by museum (O'Sullivan, 2016).
 Low interest and low power: Stakeholders such as volunteers, audience etc. are such
external parties who are not interested in the position of the Museum of London and also
don't have any right to form decisions for it.
Evaluation of interest and power of key stakeholders of Museum of London
There are various stakeholders of Museum of London all of them are segregated below
on the basis of the Mendelow's theory:
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High interest and high power High interest and low power
Stakeholder Interest and power Stakeholder Interest and power
Trustees They have authority to formulate
decisions and they also have
interest in the performance of the
Museum because they provide
monetary resources to it to
operate properly.
Employees Staff members of Museum of
London have very high interest in
the performance of it because
good position may result in
higher remunerations to them.
Their power is low because they
have no right to form strategies.
Low interest and high power Low interest and low power
Stakeholder Interest and power Stakeholder Interest and power
Government All the legal authorities of
London have no interest in the
performance if the Museum but
is has high power to form
decision because all the
organisations have to follow the
rules of local authority.
Audience
and
volunteers
All the individuals who are
working willingly or visiting the
museum are not interested in
position of it because they do not
get any benefit from it. They also
not have any power to form
decisions as they are not related
to it directly.
Current issues that may impact the interest and power of stakeholders
All the stakeholders whether they are internal or external have interest and power in the
organisation (Scarce, 2014). It could be lower of higher according to their nature. There are
various types of issues which may leave negative impact upon their interest and power. All of
them are as follows:
 As Museum of London is a public property and it is bought by a private company in
future then it can affect interest and power of stakeholders such as Government and
trustees because it may result in decreased power of them.
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 Negative market image is also an issue which may affect the power and interest of
stakeholders such as volunteers and audience because a bad image can educe their
engagement in the museum (Román-Velázquez, 2017).
There is a high possibility of that both the above described issues may leave negative
impact upon interest and power of stakeholders. In order to ignore the adverse affect it is very
important for Museum of London to formulate strategic decisions that are highly focused with
these problems.
Conclusion
From the above discussion it has been evaluated that stakeholders are considered as the
individuals or organisation which are directly or indirectly linked to the organisation. Museum of
London have various stakeholders such as government, employees, trustees, volunteers, partners,
audiences etc. All of them have interest and power whether it is high or low and these are
dependent upon their nature. For the purpose of evaluating these aspects in context of all the
stakeholders Mendlow's matrix could be used (Wacher, 2014). All the issues which may impact
the interest and power of them are becoming private and negative market image. In order to deal
with all of them it is very important for the museum to pay attention towards formulation of such
strategies that can help to deal with all the challenges in effective manner.
CONCLUSION
From the above project report it has been concluded that Museum of London is one of the
prime tourist places in London where various tourists visit every year. It is mainly focused with
high level of engagement of Londoners and school children. There are various ways are adopted
by it to enhance sustainability which are focusing upon its operations and ignoring the negative
impact upon environment. All the corporate practices which are required to be adhered are
followed by it. There are various stakeholders of it which are employees, visitors, government
etc. and in order to evaluate their interest and power Mendelow's Matrix could be used.
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REFERENCES
Books and Journals:
Bedford, L., 2016. The Art of Museum Exhibitions: How story and imagination create aesthetic
experiences. Routledge.
Ch'En, K. K. S., 2015. Chinese Tranformation of Buddhism (Vol. 1351). Princeton University
Press.
Clauss, M., 2017. The Roman cult of Mithras: the god and his mysteries. Routledge.
Gaimster, D., 2018. The archaeology of Reformation, 1480-1580. Routledge.
Hall, J. and Swain, H., 2016. Roman boxes for London’s schools: an outreach service by the
Museum of London. In Archaeological Displays and the Public (pp. 87-95). Routledge.
Leahy, H. R., 2016. Museum bodies: the politics and practices of visiting and viewing.
Routledge.
Lutz, D., 2015. Relics of Death in Victorian Literature and Culture (Vol. 96). Cambridge
University Press.
O'Sullivan, D., 2016. Wikipedia: a new community of practice?. Routledge.
Román-Velázquez, P., 2017. The making of Latin London: Salsa music, place and identity.
Routledge.
Scarce, J. M., 2014. Women's costume of the Near and Middle East. Routledge.
Wacher, J., 2014. The Coming of Rome (Routledge Revivals). Routledge.
Online
Overview of Museum of London. 2019. [Online]. Available through:
<https://www.museumoflondon.org.uk/about-us/our-organisation>
Annual report of Museum of London. 2018. [Online]. Available through:
<https://www.museumoflondon.org.uk/application/files/6815/4480/8319/
Museum_of_London_Governors_Report_and_Financial_Statements_2018.pdf>
Area of activities of Museum of London for sustainability. 2018. [Online]. Available through:
<https://www.museumoflondon.org.uk/application/files/6815/4480/8319/
Museum_of_London_Governors_Report_and_Financial_Statements_2018.pdf>
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