Analysis of Internal and External Stakeholders Report 2022

Assessment_2_Report
ANAYLSIS OF INTERNAL AND EXTERNAL
STAKEHOLDERS
Name of the student
Daljeet Kaur
Student ID
00293814T
Name of the university
Torrens University, Kent street, Australia
Master of Business Information Systems
Teacher
Parshant Singh

Executive summary
This report discussed about the different stakeholders relevant in the business operation of
Sydney PTE Institute. Numbers of internal and external stakeholders are identified in this report
along with identification of their interests and role. This report also discussed about the major
implications to be faced by Sydney PTE Institute due to the conflicting interest between the
stakeholders. In doing do, stakeholder matrix is designed, and level of the stakeholder influences
is also evaluated. Lastly, this report compared the differences between the stakeholder’s interests
between the education and electronic sector.

Table of Contents
Introduction......................................................................................................................................3
Identification of the functional areas...............................................................................................3
Political elements.........................................................................................................................4
Economical elements...................................................................................................................4
Social elements............................................................................................................................4
Technological elements...............................................................................................................5
Legal elements.............................................................................................................................5
Environmental factors..................................................................................................................6
Determination of internal and external stakeholders.......................................................................6
Internal stakeholders....................................................................................................................6
External stakeholders...................................................................................................................7
Determination of the nature and degree of the interest of the stakeholders....................................8
Impacts of the conflicting interest...................................................................................................9
Level of stakeholder’s influence....................................................................................................10
Stakeholder matrix.........................................................................................................................11
Discussion forum...........................................................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

Introduction
Managing the stakeholders is important because contemporary business entities are
having different sets of stakeholders in their operation. The current business state of affairs is
complex and diverse in nature and thus the variety of the internal and external stakeholders are
more for them. Each of these stakeholders should be managed in the most effective manner in
order to gain their contributions towards the organizational development. However, in the case
of managing the external and internal stakeholders, there are different factors such as the
influence and interests of the stakeholders should be determined. Based on these factors, the
managing strategy should be designed (Verbeke & Tung, 2013). Sydney PTE Institute is a small
scale education firm operating in the Australian region. They are mainly offering language
classes for the students. In the recent time, Sydney PTE Institute is increasing their market
presence across the country and thus the diversity in their stakeholder groups is increasing. They
should also have an effective and efficient approach of stakeholder management in order to have
the maximum return from their side.
This report will discuss about the key functional areas being faced by Sydney PTE
Institute and this will be done on the basis of PESTLE analysis. Furthermore, the nature and
degree of the interest of the stakeholders and the implications of their conflicting nature will also
be identified. Stakeholder matrix will be created and this will help the business to identify and
manage the key stakeholders.
Identification of the functional areas
Identification of the functional areas will be done with the help of the PESTLE analysis
due to the reason that PESTLE analysis will help to identify the key external factors and the

extent they should be managed by the respective stakeholders. The following sections will
discuss about each of the elements of PESTLE analysis.
Political elements
One of the major political factors for Sydney PTE Institute will be the current political
scenario in the country. Even though Australia is having favorable political environment in the
country and with the pro-business approach but change or amendments in the government
regulations might affect the business (Eskerod&Huemann, 2013). This is directly related to the
political factors of the country because change in the political parties in the government might
change the education policy as well. Thus, government is one of the major stakeholders for
Sydney PTE Institute.
Economical elements
Sydney PTE Institute is operating in a competitive business scenario with number of
other educational institutes are also operating. Thus, with the presence of the number of rivals,
maintaining the market share is challenging for Sydney PTE Institute. It should be noted that
change in the business strategy of the competitors will have economical impact on Sydney PTE
Institute. Hence, managing the competition is a major functional area for them and competitors
are a major stakeholder group. On the other hand, it should also be noted that investment in the
forms of external investors and financial institutions is also important for the business (De
Brucker, Macharis& Verbeke, 2013) This is due to the reason that Sydney PTE Institute is a
private limited company and external funding is the only way out. With the current intense
competition in place, Sydney PTE Institute should have the access to the funding sources for

further investments. Thus, investors are also the key stakeholder group for Sydney PTE Institute
and managing the funding activities is also a major functional activity for them.
Social elements
Pattern of education and needs of the students are changing rapidly based on which,
Sydney PTE Institute should also change their business style. Thus, it is always important for
them to review the trends in the market and design the organizational strategy accordingly. Thus,
customers are also major external stakeholders for Sydney PTE Institute. In this case, the trends
of the employees should also be concentrated due to the reason that their cultural factors should
also be focused. Even though Sydney PTE Institute is a small scale business entity but still their
workforce is diverse with having employees from different cultural groups (Doh& Quigley,
2014). Thus, each of the expectations and requirements of the diverse sets of employees should
be managed in order to have the desired level of performance from their side. Hence, managing
the employees is one of the major functional areas for Sydney PTE Institute and employees are
the major stakeholder group.
Technological elements
Technology plays an important part in the business management and with the recent
emergence and growing popularity of online and digital education; the importance of the
technology for Sydney PTE Institute got further increased. Moreover, due to the intense
competition in place, development in technology will help to ensure the competitive advantages.
However, it should be noted that access of improved technology should be accessed only
through the external suppliers. Thus, suppliers also play an important role in the business

operation of Sydney PTE Institute. Developing and improving technologies is major functional
areas for them and suppliers are also the key stakeholders.
Legal elements
Australia is having number of rules and legislations in relation to the education industry
and each of them should be adhered by Sydney PTE Institute. The legal aspects cover the
business management and employee management elements. However, with the increase in the
business areas of Sydney PTE Institute, they will face diverse sets of legislations. Hence,
managing the legal aspects is also a key functional area for Sydney PTE Institute.
Environmental factors
Environmental factors are not having direct implications on the education industry due to
the type of business operation. However, in the future course of action, the internal stakeholders
including the employees and the managers should be responsible enough in meeting the
environmental factors.
Determination of internal and external stakeholders
From the above PESTLE analysis, it is identified that Sydney PTE Institute is having
number of external and internal stakeholders relevant in their business operation. The following
section will discuss about their roles.
Internal stakeholders
Managers and directors are the key and one of the most important stakeholder groups due
to the reason that they are head of the decision making process. Moreover, the managers are also
responsible for leading the daily operations and mitigate the challenges. Employee management

is another responsibility of them. Hence, it can be concluded that in terms of the internal
stakeholders, managers and directors are the key ones (Beringer, Jonas & Kock, 2013).
The next major internal stakeholders for Sydney PTE Institute are the teachers. This is
due to the reason that teachers are key service providers in the educational institutions and they
are the one who directly deals with the students. Thus, they play the role of teaching the students
and gain the positive word of mouth. The more effective will be their service, the more will be
the brand value of Sydney PTE Institute in the market. Moreover, it should also be noted that
teachers play the role of determining the current trends in the market and conveying it to the
upper level management.
Stakeholders in the admin department and marketing department can also be considered
as the key internal stakeholders for Sydney PTE Institute. This is due to the reason that they are
responsible for attracting and admitting new students in the institute and increasing the brand
identity for the company. Hence, the more will be their effectiveness, the more will be the long
term business viability for Sydney PTE Institute.
External stakeholders
Among the key external stakeholders for Sydney PTE Institute, the students are the most
important one due to the reason that they are the key source of revenue generation. All the
services being offered are designed in accordance to the trends among the students and thus the
viability of Sydney PTE Institute is depended on them. The key role of the students is to select
the different courses offered by Sydney PTE Institute and getting admitted. Apart from the
revenue generation, they are also important to Sydney PTE Institute because brand value and

goodwill is associated. Success of the students will create positive word of mouth for Sydney
PTE Institute (Brem&Viardot, 2015).
Government is another key external stakeholder for Sydney PTE Institute due to the
reason that in the above PESTLE analysis, it is identified that rules and regulations initiated by
the government will determine the extent of the organizational success for Sydney PTE Institute.
The key role of the government is to ensure the ethical business practices and prevention of any
deviation.
Suppliers are also identified as the key external stakeholder for Sydney PTE Institute
because they will enable Sydney PTE Institute in having the access to the latest technologies.
This should be noted that Sydney PTE Institute is in the business of providing education but not
developing new technologies and thus they are dependent on the suppliers for sourcing.
Determination of the nature and degree of the interest of the stakeholders
The different stakeholders identified in the above sections are having diverse
expectations from the business operation. However, their level of interest is different based on
the extent to which the stakeholders are influenced by the business activities of Sydney PTE
Institute. In terms of the internal stakeholder groups, managers and directors are having the
maximum and highest interest in the business because of the fact that they are entirely associated
with the business affairs and profit and loss is determined by them (Buttner& Lowe, 2017). If the
business ran in to losses, then they will lose their jobs along with losing out in the profitability.
Moreover, their interest is more because managing the employee performance is also with the
managers and directors. Thus, the maximum responsibilities and interests of the business are
associated with the managers and directors.

The interest of the employees is extended up to the job security because they are working
in the workplace for earnings. Thus, they are more interested in ensuring their job security by
contributing in the organizational success. Among the employees, the interest of the admins and
marketers are extended to the acquisition of new segments and retaining of the existing ones.
Thus is due to the reason that if the rate of the new acquisitions cannot be maintained, then the
job security of the marketers will be affected (MacIndoe& Barman, 2013). Hence, the admins
and marketers are having high level of interest. The interest of the teachers is moderate
compared to that of the marketers because they are not associated with the business affairs. Thus,
irrespective of the business performance, the role of the teachers will remain the same. However,
their job security is a major factor and they are also interested in ensuring their job security.
In terms of the external stakeholders, the interests of the students are up to the
effectiveness of Sydney PTE Institute in offering popular and potential courses. This is due to
the fact that the students will be interested in the courses of Sydney PTE Institute till these will
offer them value. Thus, the interests of the students will be moderate as there are other options
available as well. The interest of the government is low because government is not involved in
the profit sharing of the business. Thus they are having interest only in ensuring the ethical
business processes. The interest of the supplier is extended to the sales of their components.
Thus, the better will be the performance of Sydney PTE Institute, the more will be the sales of
the components of the suppliers.
Impacts of the conflicting interest
In the business activities of Sydney PTE Institute, there are number of stakeholders
identified along with their different interests. However, some of their interests are contradicting

in nature such as the interest between the directors and the employees. The core objective of the
directors is to reduce the cost of internal management and increase the profitability but on the
other hand, it is expected by the employees that their pay scale will get increased. These both
interests are conflicting and cannot be fulfilled at once (Majava, Harkonen&Haapasalo, 2015).
The major impact of this conflicting situation is the lack of engagement due to the fact the
stakeholders whose interests will not get met, tend to get demoralized in their workplace. This
will in turn affect the production and performance of the entire organization. On the other hand,
it should also be noted that emergence of the conflicting interests will also cause lack of
relationship between the stakeholders. In terms of the stakeholder management, relationship
between them is important. With the emergence of the conflicting interests between the
stakeholders, the relationships will get affected as well.
Level of stakeholder’s influence
Stakeholders High Moderate Low
Teachers
Managers and
directors
Students
Suppliers
Government
Competitors
In the above table, it is well identified that each of the identified stakeholders is having
varieties of influence. This is in line to their different level of interests. For example, the

influence of the managers and directors are high compared to others due to the reason that they
are the key factors in the decision making process and having the maximum authority. In
addition, the influence of the students is moderate because they are not involved in the internal
management of Sydney PTE Institute but quality of the education. This matrix is important
because based on the determination of the influence of the stakeholders, management strategies
should be designed.

Keep satisfied
Teachers
Admins and marketers
Government
Monitor
Suppliers
Competitors
Keep informed
Students
Government
Manage curiosity
Managers
Directors
Influence
Power
Stakeholder matrix
Discussion forum
Sydney PTE Institute is operating in the education sector and another sector identified is
the consumer electronics sector. The key trends of both these industries are different and thus the
differences are also evident in terms of the stakeholder’s interests and influences. One of the
major dissimilarities identified is the influence of the board members. This is due to the reason
that majority of the large scale entities are operating in the consumer electronics sector and these
firms are having board members over the directors. In this case, the influence of the directors is
less in this sector compared to that of the directors in the education sector. In the case of
education sector, board members are not there in the small and medium scale entities. Another

key difference identified is influence of the teachers. This is due to the reason that teachers are
not relevant in the case of the consumer electronics sector.
Conclusion
This report concludes that Sydney PTE Institute is having diverse sets of internal and
external stakeholders in their business operation. In this report, the roles of each of these
stakeholders are the discussed and evaluated along with their interests and influence. It is
identified that probability of emergence of conflicting interests is more for Sydney PTE Institute
and they will face a number of challenges due to that. In this report, stakeholder matrix is also
done and each of the identified stakeholders is placed according to their roles in the business. It
is concluded that based on the identification of the factors in this report, Sydney PTE Institute
will be benefited in determining their stakeholder management system.

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