Stakeholder Analysis Assignment Examining Business Case Of Woolworths

Question

Task:
Context:
Business stakeholder analysis is a technique for identifying stakeholders and analysing their roles. The aim of the analysis is to map out the stakeholders’ level of influence and degree of interest with regards to the business. Stakeholder analysis can also be used to assess the relationships between different stakeholders and the issues they care about most.

Internal stakeholders are individuals or groups who are directly involved in the business, such as owners, board members, managers, employees, and investors. External stakeholders are indirectly influenced by the business activities, like customers, suppliers, competitors, society and government.

By understanding both perspectives, the business can engage and enhance communication with relevant stakeholders, reduce or prevent risks, identify business opportunities, improve internal stakeholders’ commitment in the business and the reputation of the business amongst external stakeholders.

Instructions:
In this stakeholder analysis assignment, you will examine a business in an industry that you have either previously worked in or would like to in the future.

Presenting a business example and contributing to the discussion forum, you will:

• identify and analyse functional areas in the business
• identify and analyse the internal and external stakeholders
• compare two industries with each other
• create a stakeholder matrix
• discuss chosen stakeholders and industries in the context of relevant theories and frameworks

Answer

Executive summary

• In the recent time, organisations are required to fulfil the expectations of different stakeholders.
• As per the investigation on stakeholder analysis assignment it is seen that from the past few years, stakeholders concern has increased in the organisation.
• Woolworths is the biggest supermarket chain in Australian market.
• It has different stakeholders such as government, customers, investors, suppliers, and employees.
• Each stakeholder has different interest in the organisation. In order to satisfy their needs, Woolworths is adopting several measures.

Introduction
Woolworths is the leading supermarket retailing company of Australia. Its first operation was started in 1924 in Sydney. It faced so many downfalls in its initial phase, but it started working in different innovative concepts. Even after so many downfalls, Woolworths became the biggest retailer in Australia and New Zealand in 2012. Its innovative concepts have helped it in satisfying the different needs and demand of customers. It specialises in selling vegetables, meat, fruits as well as packaged food. In the recent time, it has around 100 stores across Australia. Due to its best services, it is able to achieve strong brand image. At the same time, it also works on providing best quality products in lower and affordable price.

Woolworths is also known as the fresh food company by providing fresh products. It has competent and skilled workforce that helps it in undertaking several business activities in effective manner. Through them, it is able to provide best quality services, convenience as well as value to its customers. By working on different new initiatives and approaches, it is able to bring the several new concepts. It also works effectively and closely with the different farmers of Australia for ensuring the better quality of its products. Around 96 per cent of its fresh vegetables and fruits are brought from the Australian growers.

Brief introduction about stakeholders
Stakeholders are those people who have some interest in the activities of organisation. These people affect the organisational decisions as well as get affected from their decisions. In the present time, stakeholders should be satisfied for building better image and achieving high growth. It also requires to regularly review and check the needs and expectations for satisfying them. There are various stakeholders named employees, government, investors, customers as well as suppliers. each stakeholder has their own needs and wants in organisation. Due to this, it is quite essential for organisations to undertake some measures that will satisfy the stakeholders. Organisations are also making continuous efforts for maintaining and deepening the positive relationship with the different stakeholders.

They are major reason company is able to build its strong image in the market and earns higher revenue. Not only this, organisations are also required to work ethically by providing value and respect to each of the stakeholder as per their stake. Basic concepts in value are honesty, teamwork, loyalty, caring and professionalism. As compare to this, ethics are some basic guidelines that is essential for running organisation. It includes ethical consideration, transparency, and fairness.

Pestle analysis

Functional areas of Woolworths
Organisation function is said to be the activities that is carried in the different business department. The major functional areas are operations, finance, human resource, and marketing. The first function named operation support the suppliers and customers for reducing the wastage. the marketing function is the major strength of Woolworths as it assists in increasing awareness for customers through newspaper, television as well as magazines. Woolworths has strong belief that when customers are well informed, company will be able to grow. It also has several health promotional programmes. Human resource is also major function in Woolworths. It continues to attract, retain, and engage the best and capable people in Woolworths. Human resource of Woolworths significant carry out their responsibility. Better and effective customer service is another functional area of Woolworths. For carrying out this function, Woolworths has also appointed the customer suggestions as well as their respective complaints. This is the reason customers find it quite easy to discuss their complaints or problems with the organisation.

The major stakeholder of Woolworths includes suppliers, employees, government, customers, shareholders, and employees at last. The external stakeholder of Woolworths includes the union, media, organised business, NGOs, and franchisees. For maintaining the emphasis on effective relationship with the stakeholders, Woolworths has significantly worked the process of engagement in proper manner. It also tends to ensure to regularly see the needs and expectations of the stakeholders (Svensson, Ferro, Hogevold, Padin & Sosa Varela, 2018).

Internal and external stakeholders of Woolworths
In Woolworths, internal stakeholders include employees, and board of directors (Fels & Lees, 2018). It significantly treats employees because they are the major reason company is able to grow and sustain in the market (Woolworths Group, 2018). Human rights are properly taken care by the Woolworths, as workers are free to choose their employment. It means that they are free from any sort of pressure at organisation. Concerning investors, the one with higher investment has high stake in the organisation. Not only this, external stakeholder also plays a significant role in Woolworths. It is because it has to bring changes in its internal operations as soon as demand and preference of customer’s changes. Australian Government also comes up with the competition policy for removing the unnecessary competition in Australia. Customers are one such major stakeholder in the organisation whose concerns are required to be given the high priority. Customers always give emphasis on the high-quality products. Considering this, Woolworths also come up with “green refrigerator technology.” This technology effectively helps it in storing the perishable items without any damage (Deverka, Lavallee, Desai, Esmail, Ramsey, Veenstra, & Tunis, 2012). Therefore, the major stakeholders in Woolworths are government and customers. Suppliers also have major stake in the working of Woolworths, as there are various supermarkets in Australia.

Degree and nature of the major stakeholder interest and concern
Stakeholders have their major concern and interest in the organisation. They directly affect the company through their actions. At the same time, they also get affect through the actions of organisation. Woolworths significantly focus on the stakeholders for knowing the stakeholder’s problems related to social, environmental, and economic area. They are also not bound to stay in organisation. However, a prior notice for decided time is required to be given from the employee’s side. Not only this, employees are free to form the trade union so that they can effectively bargain with the Woolworths management (Jie & Gengatharen, 2019). Woolworths do not have any sort of discrimination for its employees based on their caste, religion, creed, or gender. Every person working in the organisation is treated equally. This is the reason employees give their best in the organisation. Safe and hygienic working environment is provided to the employees that make them happy while working at workplace. Besides this, they are also assured of the safety and security hazards at organisation. Therefore, it makes so many efforts to minimise such kind of issue at workplace.

Level of main stakeholder influence
The main stakeholders in Woolworths are government, customers, and suppliers. They put influence on the organisation in high rate. Government affects Woolworths operation through introduction of any new law, taxes as well as through implementing the price ceiling. For example: the recent pandemic due to COVID 19, government has decided to close the entire operations. It has decided certain time limit for Woolworths store for selling the daily necessity item. Government has higher interference in Woolworths as it is essential to follow the norms made by the government. Government also made several policies in favour of supermarket chain in Australia. Suppliers also have major stake in the working of Woolworths, as there are various supermarkets in Australia. This is the reason behind high conflict interest. Due to the high availability of supermarkets, it also has to face the bargaining power of suppliers many times. However, the bargaining power of supplier can be moderate as well as high (Ferro, Padin, Svensson, Sosa Varela, Wagner & Høgevold, 2017).

Woolworths also come up with several new initiatives in order to satisfy the needs of the customers. It has also delivering the work from home, as customers in recent time prefer to buy goods online. It is because the changing nature in the Australian lifestyle is regularly demanding the range of different products and foods. This is the reason Woolworths has stated that customers are its main priority (Lynch?Wood, Williamson & Jenkins, 2009). This also ensures to bring several changes in order to meet their ever-changing demand. The main interest of every stakeholder is to ensure the value and ethics in organisation. Their interest is required to fulfil as without maintain healthy relationship with different stakeholders, it is not possible for organisation to grow. Customers are also major and most important stakeholder whose interest is required to be considered or to be considered by the organisation. They require the quality product as well as services and on right time. In the recent time, customers are putting major impact on the retailing supermarket. In the recent pandemic of COVID 19, customers have to suffer a lot as they are not able to purchase the products. Therefore, Woolworths is also taking caring of the important measures to keep its customers safe. It has significant employees who are guiding customers to keeping distance from each other. By keeping this in mind, Woolworths has also started the green refrigerator technology. This technology helps the Woolworths in storing the perishable item for exceptionally long time. Several changes are also evolving over the time in needs and preferences of the customers (Bepari & Mollik, 2016).

Woolworths has also significantly understood the different requirements of stakeholder by giving due consideration to them. This is the reason Woolworths is able to grow in Australia. it is able to build an image in the mind of customers by providing the, quality services and products. For growing effectively and efficiently, it is also essential to cooperate with the businesses. It is true that businesses can only run with the support and essential cooperation of different stakeholders (Lenz & Lahn, 2015). Therefore, stakeholders play significant role in

Stakeholder matrix

The above stakeholder matrix has been divided into power and interest. Stakeholders having high power have high interest in the organisation. In the above stakeholder matrix, stakeholders with high power but with low interest are just required to keep satisfied in the organisation. As compare to this, stakeholder having lower power, but high interest must be required to be informed. For example: customers and employees do not have such power, but they have high interest in the organisation.

Comparison of Woolworths (supermarket retailer) with Telstra (telecommunication)
In Woolworths, the major stakeholders are suppliers, customers, and government. Government is the first and highly influencing stakeholders as it directly affects the organisational actions. Woolworths is also required to follow the government rules and regulations for surviving in the market. If it will ignore any of the government law, it will not be possible for it to survive in the market. Every retailing as well as non-retailing company is required to effectively undertake the policies of government for carrying out its operation. At the same time, customers also influence the decision-making because customers are the major reason for the company to grow in the market. Woolworths also come up with several new initiatives in order to satisfy the needs of the customers. It has also delivering the work from home, as customers in recent time prefer to buy goods online. It is true that fulfilling the different needs of the stakeholders help the company in earnings and revenue (Getkate, 2017).

Comparing Woolworths, interest of Telstra interest is different. Three main emphasis of Woolworths is given on providing best and premium quality of products in least prices. As compare to Woolworths, Telstra customers give more emphasis on quality information for getting the best network. Customers therefore require the stable and uniform communication that allows them in competing locally, nationally as well as worldwide. Due to this, Telstra provide quality information in proper time. At the same time, Telstra customers are also significantly interested in quality, affordability and accessibility of its product and services. They also have major interest regarding privacy and security of their information. This is the reason Telstra has made significant progress toward its customer satisfaction. Besides this, government also has different interest from both the firms. For example: government had brought the competition policy for removing the unnecessary competition. For telecommunication sectors also, government is taking several measures to support. The favour is given to the telecommunication sector, as government is also required to depend on telecommunication sector for delivering any kind of information. Communities are also significant stakeholder in Telstra. This is the reason Telstra operates in remote, metropolitan, and regional areas of Australia. Due to this, it can be said that Telstra also has significant stakeholder group where it can engage effectively. It also has different stockholders’ group where it is able to effectively consult with different stakeholders. Due to this, it is also able to gain several ideas that further help it in building its relationship and loyalty. It also makes regular efforts to meet and engage with the different needs of customers that tend to increase employee’s satisfaction (Grimmer, 2018).

Conclusion
From the above discussion, it can be stated that stakeholders are major part of the organisation that helps the organisation in several ways. However, the major area where organisations are required to focus includes environment protection, customer satisfaction by delivering quality goods and services, positive relationship with suppliers as well as complying with the government norms and laws. Stakeholders also significantly affect the decision-making process as it is required to undertake the different stakeholder’s group in mind at the time of coming up with any new measure or change. In this regard, Woolworths has also undertaken different innovation and changes to ensure the satisfaction of various stakeholders (Koehler, & Raithel, 2018).

Woolworths has also significantly understood the different requirements of stakeholder by giving due consideration to them. This is the reason Woolworths is able to grow in Australia. it is able to build an image in the mind of customers by providing the, quality services and products. For growing effectively and efficiently, it is also essential to cooperate with the businesses. It is true that businesses can only run with the support and essential cooperation of different stakeholders (Lenz & Lahn, 2015). Therefore, stakeholders play significant role in deciding the strategies and policies if the organisation. At the same time, it is also required to follow the ethical consideration in business for ensuring the smooth functioning of different business operations.

References
Bepari, M. K., & Mollik, A. T. (2016). Stakeholders’ interest in sustainability assurance process: An examination of assurance statements reported by Australian companies. Managerial Auditing Journal, 31(6/7), 655-687.

Deverka, P. A., Lavallee, D. C., Desai, P. J., Esmail, L. C., Ramsey, S. D., Veenstra, D. L., & Tunis, S. R. (2012). Stakeholder participation in comparative effectiveness research: defining a framework for effective engagement. Journal of Comparative Effectiveness Research, 1(2), 181-194.

Fels, A., & Lees, M. (2018). Unconscionable conduct in the context of competition law with special reference to retailer/supplier relationships within Australia. In Abusive Practices in Competition Law. Edward Elgar Publishing.

Ferro, C., Padin, C., Svensson, G., Sosa Varela, J. C., Wagner, B., & Høgevold, N. M. (2017). Validating a framework of stakeholders in connection to business sustainability efforts in supply chains. Journal of Business & Industrial Marketing, 32(1), 124-137.

Getkate, G. (2017). A comparative case study of the strategic internet communication of one local and one international contemporary organisation (Doctoral dissertation, The IIE).

Grimmer, L. (2018). The diminished stakeholder: Examining the relationship between suppliers and supermarkets in the Australian grocery industry. Journal of Consumer Behaviour, 17(1), e13-e20.

Jie, F., & Gengatharen, D. (2019). Australian food retail supply chain analysis. Business Process Management Journal, 25(2), 271-287.

Koehler, I., & Raithel, S. (2018). Internal, external, and media stakeholders’ evaluations during transgressions. Corporate Communications: An International Journal, 23(4), 512-527.

Lenz, R., & Hahn, U. (2015). A synthesis of empirical internal audit effectiveness literature pointing to new research opportunities. Stakeholder analysis assignment Managerial Auditing Journal, 30(1), 5-33.

Lynch?Wood, G., Williamson, D., & Jenkins, W. (2009). The over?reliance on self?regulation in CSR policy. Business Ethics: A European Review, 18(1), 52-65.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.

Sutton-Brady, C., Kamvounias, P., & Taylor, T. (2015). A model of supplier–retailer power asymmetry in the Australian retail industry. Industrial marketing management, 51, 122-130.

Svensson, G., Ferro, C., Hogevold, N., Padin, C., & Sosa Varela, J. C. (2018). Developing a theory of focal company business sustainability efforts in connection with supply chain stakeholders. Supply Chain Management: An International Journal, 23(1), 16-32.

Woolworths Group. (2018). Australian food: Woolworths supermarket. Retrieved from: https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/Woolworths