Constructing a Stakeholder Map
Added on 2019-12-03
11 Pages3148 Words169 Views
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Application ofStrategic Model
EXECUTIVE SUMMARY In the present study it has been assessed that stakeholder mapping is the crucialelement of stakeholder analysis so that relationship among individuals and businesscan be assessed. However, Stakeholder model has been applied in regard to Sainsburyin order to monitor the interests of stakeholders and thus assess their concerns so thatsatisfaction can be attained. The list of stakeholder within Sainsbury involvescustomers, employees, shareholders, suppliers and local communities etc. However,power and interest grid has been implied in order to know their implications so thatindividual stakeholder interests can be identified. Also, firm faces varied consequencessuch as low motivation of workers, dissatisfaction among consumer’s affects them andthus they leave the business which results in low sales and profitability.
Stakeholder theory can be stated as the framework that helps business toaddresses moral and ethical values in the management so that best decisions can betaken. The main purpose of such model is to develop effectual relationship amongbusiness and others in both internal and external environment. Stakeholder model isuseful for businesses in order to monitor the interests of stakeholders and thus assesstheir concerns so that satisfaction can be attained. There are varied stakeholders thatinvolve customers, employees, shareholders, suppliers and local communities etc(Shirey, 2012). Here, stakeholder model has been applied to Sainsbury in order toanalyze its market potential and power and interest of its stakeholder group within firm.It can be stated that Sainsbury is the second largest chain of supermarkets in UK.However, Tesco overtook Sainsbury in order to become the market leader and gainhigh market share in terms of sales and profits. Also, business faces tough competitionfrom different retailers such as Asda etc. The stakeholder mapping model is required tobe implied within Sainsbury so that it assists in analyzing the power and interest ofstakeholders within enterprise and also influence them to attain desired targets. The listof potential stakeholders at Sainsbury are customers, employees, governmentagencies, media, local communities, financial institutions, environmental agencies,shareholders, suppliers and competitors (Clifton and Amran, 2011). It can be assessed that business is required to apply stakeholder mapping modeland analyze the expectations of individual stakeholders within enterprise. For instance,consumers are a key player and possess high power and interest therefore business isrequired to engage closely in business decision so that their needs can be satisfied.While, employees has low power and high interest which states that Sainsburymanagement need to inform its workers regarding business future plans so that theycan contribute their ideas to attain results (Kontogianni, Papageorgiou and Tourkolias,2012). It is essential for firm to keep them informed so that they can be motivated tocarry out best outputs. Also, each and every stakeholder has certain expectations fromfirm therefore, business should effectively fulfill it with the aim to satisfy their needs. Following is the stakeholder mapping for Sainsbury and analyzing the interestsand power of different stakeholders so that their needs and expectations can be fulfilled.It is as follows- 1
Customers- They possesses low power and high interest and therefore, it isessential for Sainsbury to build close connection with them for creating impact onstakeholders. Also, business should show little consideration regarding theirneeds and expectations so that it helps in increasing the sales and profitability offirm. Sainsbury needs to determine their needs and then provide them requiredproducts and services so that satisfaction can be attained (Fooks and et. al.,2013). Employees- They also lies at the same quadrant i.e. low power and high interestand thus firm should engage its workers in decision making to develop futureplans. Through maintaining good relationship with employees Sainsbury providesthem required information with the aim to attain objectives. It is significant for firmto satisfy employees so that they can enhance the productivity of firm in market(Vance‐Borland and Holley, 2011). Organization provides effectual training anddevelopment to its workers so that they can deliver the best quality services tocustomers and fulfill their demand so that strikes and lockout conditions can beavoided. Government agencies- Such authorities and regulations possess high powerbut low interest therefore, it is essential for the management of Sainsbury toinform them regarding the development attained within enterprise. Also, theirrequirements should be satisfied through following regulatory policies for carryingout business operations. Thus, business needs to operate effectively as per theirguidelines so that best outcomes can be attained (Johnson and et. al., 2013). Media- They possesses high power and interest and thus business is required toinform them about the future planning so that they can attain the best possibleoutcomes. Firm need to engage them within business innovative ideas andlaunches so that potential consumers and shareholders can be attracted in orderto invest within firm. It helps Sainsbury to increase their relationship with clientsand other media agencies so that best information can be delivered to them(Frynas and Mellahi, 2015). Also, enterprise is required to develop brand imagein market and achieve goals. 2
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