I work for a small software company and I am the Scrum Master. In this company we have a small group of people who consist our StakeHolders. To represent the StakeHolder's interest the stakeholders choose one of themselves to be product owner. To me this is all fine and dandy as long as we have some one who is responsible for what the development team works on. Unfortunately the company is maintaining several projects at one time and there is always competing items for development time.
Here is my question, at what level does the product owner prioritize work? My product owner likes to say we need to work on Large Project A, Large Project B, Small Project C. The time line for these items are due in 2 months. A the Product Owner considers that to be the priority of items.
Alot of the resources I have read about Scrum says the Product Owner organizes work by features. Supposedly, a great product owner will organize items in priority to maximize the amount of work the team can do. From what I read, it seems to me that our product owner is only a Product Owner in name, where he is actually just a StakeHolder representing StakeHolders.
If I am right about this, what is an effective way to correct the Product Owner and Stake Holder on his management style?