Internal and External Stakeholder Analysis

This report analyzes the internal and external stakeholders of Metro Cash and Carry, a leading international self-service wholesale company. It examines the functional areas of the business, identifies key stakeholders, analyzes their interests and influence, and compares the stakeholder landscape in the wholesale and retail industries. The report also includes a stakeholder matrix to prioritize stakeholder management strategies.

ASSESSMENT INTERNAL
AND EXTERNAL
STAKEHOLDER ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Identification and analysis of functional areas in business ...................................................4
Identification of internal and external stakeholders ..............................................................5
Nature and degree of main stakeholder interests....................................................................7
Level of main stakeholders’ influence...................................................................................8
Stakeholder matrix .................................................................................................................9
Comparison of Industries to identify the stakeholder dissimilarities...................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

EXECUTIVE SUMMARY
This assignment will provide information about the stakeholders of the organisation and
their influence on the business. Functional areas of the business consist Management,
Accounting Human resource, Operations. The internal stakeholders of the organisation consist
of Managers, Employees, Owners whereas External stakeholders of the organisation Customers,
Government, Creditors, Shareholders, Suppliers. Main stakeholder interests will include
Economic decision ,Profit motive, Salary and wages, Dividend and share price growth, Long
term contract. The stakeholder matrix is created which has provided information about the
influence and power of the stakeholders. The comparison of the wholesale and retail industry is
made which has provided information that stakeholder have higher interests in the wholesale
industry.

INTRODUCTION
Stakeholders of the organisation are those which have interest in the company
performance and profitability due to different reasons. Stakeholder analysis provide brief
understanding about analysing and identification of stakeholders needs. In this assignment,
Metro cash and carry will be consider which involved in International self - service wholesale. It
is providing the products related to consumer goods. This study will provide understanding
about different functional areas. Moreover, it will include the discussion on internal and external
stakeholders and their roles. Furthermore, it will consist the information regarding stakeholder
influence on the business.
MAIN BODY
Industry analysis
Metro cash and carry is involved in wholesale trade in which it sale the products and
services to the retailers in different countries. The wholesale industry have strong distribution
channel and provide the products and services at the lower prices than the retailers. This industry
is attractive as there are fewer competitors as compared to other industry.
Identification and analysis of functional areas in business
Functional areas of the business consist of various department in the organisation which
perform different operation in order to achieve the goals and objectives of company. Metro cash
and carry have different functional areas which consist of the followings :
 Management : The managers of the organisation are responsible for managing the
resources and monitoring the performance of organisation. They perform various
function which consist of planning, organising, controlling and directing. They plan in
order to achieve the goal and objective of the firm effectively and efficiently (Andriof &
Waddock, 2017). The various strategies are being formulated by the managers to achieve
the long term goal of organisation.
 Accounting : Accountants in the organisation provide managers with information
regarding the financial performance and profitability of the firm which help the manager
in formulating the strategies for achieving higher profitability and performance. The
accounting area of organisation
 Human resource : The main function of the department is to recruit the people on the
basis of the shortage of employees in different department. They have to recruit the

highly qualified and skilled workforce of the company in order to improve the
performance and profitability of the organisation.
 Operations : The operational department perform function related to the production that
means the operations are those whereas the factors of production are converted into
products and services. The operation manager of organisation is responsible for
managing the day to day activities of firm.
On the basis of above identification it is analysed that the business have to perform
various function in order to achieve the goals and objectives of the firm(Crowther, 2018). By
effectively utilising the resource the business is able to create value for the stakeholders which is
beneficial for organisation.
Identification of internal and external stakeholders
Stakeholders of the organisation are those which have their interest in the activities of the
organisation for various reasons(Font, Guix & Bonilla-Priego, 2016). The stakeholders consist of
internal and external stakeholders. The internal stakeholders of the organisation are those which
are involved in the business activities and perform various operations relating to the business
Whereas external stakeholders are those which are present outside the organisation but have their
interest and influence on the operation of the organisation.
The internal stakeholders of the organisation consist of following :
 Managers : The managers in the organisation is included in the stakeholder because they
formulate strategy and use the financial information on the basis of which they are able to
make appropriate decision for the organisation. They use the financial statement on the
basis of which they are able to make decision for the growth and success of the business
by analysing the financial information(Bouzon, Govindan & Rodriguez, 2018). The role
of managers is to formulate strategies which can help the firm in attainment of their
targets.
 Employees : The employees of the organisation are interested in the financial
information of the organisation in order to secure their future and identify the financial
performance and profitability of the organisation which can help them in making decision
regarding their future job and security. Employees of the organisation perform the
operation of the firm in order to achieve the targeted goals.

 Owners : They are the individual that hold the significant shares of the firm. They are
the people which have invested they capital in organisation for performing day to day
activities and thus they have interests in the business activities of the organisation. They
are the internal stakeholder of the organisation because they have interest in the
performance and profitability of the business.
External stakeholders of the organisation
 Customers : Organisation for its success and growth is required tom fulfil the needs and
demand of the customers in order to satisfy the customer expectation. The important role
is being played by the customer in the organisation because they are the end users of the
organisation product and services and thus they are the stakeholders of the organisation
for which the firm is operating its activities.
 Government : It has interest in the organisation for the tax purpose(Hawn & Ioannou,
2016). The role of the government is to monitor the activities of the organisation in order
to identify if the firm is performing its activities sin ethical manner or not.
 Creditors : They are interests in the business activity and performance because they have
provided the funds or goods and services on credit basis to the firm.
 Shareholders : The investors of the company are those which have invested their money
in the business for the operation of day to day activities.
 Suppliers : They supply the raw material to the firm and thus they have stake in the firm
in order to identify the creditworthiness of the organisation.

Nature and degree of main stakeholder interests
The stakeholders of the organisation have interest in the activities of the business due to
various reasons. The following are the interests for which the stakeholders can be interests in
business.
 Economic : The stakeholders such as government, investors etc. can have stake in the
business for the economic decision making. The stakeholders have interest in order to
identify the economic impact of the business activities.
 Profit motive : The owners, shareholders etc. which are the stakeholder of the
organisation have interest in increasing the profitability of the firm.
 Salary and wages : The employees and managers of the organisation have concern about
the salary which is the main interest for them to be engaged with business(Kettunen,
2015) .
 Dividend and share price growth : The shareholders or investors of the business main
interest is to acquire higher dividend which is possible if company increases the
profitability.
Illustration 1: Internal and external stakeholder
( Source : Business Stakeholders, 2018)

 Long term contract: The main interests for the suppliers is to build long term contract
with the organisation and prompt payment made by the firm for the credit purchases.
Conflicting interests of shareholder
The shareholders conflict because of the various decision made by the organisation. The
following is the table that shows the conflict of interests of stakeholders :
Decision supported by opposed by
Cut jobs in order to reduce
cost of the company
Shareholders Employees and local
community
Increase in selling prices for
profit enhancement
shareholders and management customers
From the above table provide understanding that the conflict of interest exist due to
opposed of the decision by the another stakeholders.
Level of main stakeholders’ influence
The stakeholders have a great influence on the business activities. The shareholders have
the influence on the business activities as they have the power to elect the directors. The
shareholders have their influence on the business activities because they have invested their
funds for the operation of the business. The customers are those which assist in increasing the
profitability of the firm by buying products and services from the firm. The Stakeholders of
Metro cash and carry have their influence on the business activity due to their interests in
business. Customers have their influence on the business profitability(Herremans, Nazari &
Mahmoudian, 2016). The managers have their influence on the decision making by the firm as
they have the information regarding the business. Moreover, the suppliers have their influence
on price, quality, product availability and to provide credit to the organisation for the outstanding
amount. Government can impose regulation, taxation due to weigh they have a great influence on
the business activities.
Stakeholder matrix
The stakeholder matrix is prepared in order to identify the importance and the influence
of stakeholder on the business operations. With the help of stakeholder matrix the business is
able to understand which stakeholders is having higher influence on the business in order to

maintain good relation with those stakeholders for the benefit of the organisation. Organisation
create stakeholder matrix in order to analyse the influence of the stakeholder on the business.
Stakeholder matrix
 Keep satisfied : The stakeholders which are required to be keep satisfied consist of
Investors, customer, government etc. as they have the high influence on the business.
 Manage closely : These are those stakeholders which are highly important for the
organisation and thus required to be managed closely(Sterling & et.al., 2017). It consists
of management, government, investors. They have high influence of business
 Monitor : It consists of the stakeholder which require monitoring it includes employees,
suppliers etc. They have low influence on the business
 Keep informed : The stakeholder which required to be keep informed consist of
government, creditors, investors, management etc.
I
llustration 2: Stakeholder matrix
(Source:S T A K E H O L D E R P O W E R / I N T E R E S T A N A L Y S I S ,
2 0 1 8 )

Comparison of Industries to identify the stakeholder dissimilarities
Porter five forces analysis
Threat of new entrants - medium
 it requires strong distribution channel
 capital investment
Threat of existing rivalry - high
 High rivalry as there are many firms
involved in this industry.
Bargaining power of customers - high
 it is high because there are many firms
providing the same products
Threat of substitute products - medium
 It is medium as there are less
substitutes available in the market
Bargaining power of suppliers - high
 It is high because manufacturer for the products are less.
Competitor analysis
The main competitors of this organisation are Aldi, Walmart, Kroger, fibre2fashion
etc.
Comparison of wholesale and retail industry
Particulars Metro cash and carry Marks and Spencer
Industry Wholesale Retail
Stakeholders
dissimilarities for
Investors
The profitability of this
company is higher than the
other company involved in
the retail industry because it
is operating at the bigger
level than the other
company. There are
dissimilarities in the
stakeholder as this company
provide higher dividend to
the shareholders due to
which more investors are
The profitability of Marks and Spencer is
lower than the other company due to
which fewer investors are attracted
towards the firm because it pays lower
dividend to the shareholders.

attracted.
Customers The more customers are
attracted towards this
industry as it provide bulk of
products and services such
as consumer goods which
assist in attracting customer
towards the product and
services provided by this
industry.
Marks and Spencer provide specific
product which consist of clothing and
home appliance are provided to customer
at higher prices and thus the stakeholder
is less attracted towards this industry.
Government The government is more
attracted towards this
company as it have higher
profitability than the other
due to which the
government will have more
tax income.
The government is less attracted or have
interest in this because of lower
profitability than the Metro cash and
carry.
Competitors fibre2fashion , Kroger,
Walmart
Sainsbury, Zara , Tesco etc.
On the basis of above comparison it is analysed about the stakeholder which have their
interest and influence on the business. It has provided information that the stakeholders are more
attracted towards Metro cash and carry because of its higher profitability than Marks and
Spencer. The stakeholder interests is more towards Metro cash and carry because of its large
product line and the higher dividend paid by the organisation(Zientara, 2017). Moreover, the
creditworthiness of the firm is good than the other company which means the financial health of
the organisation is good. Also, the employees are provided with higher wages than the other
company which provide motivation to the employees and retain them in business for the long

term. The stakeholder which have the higher influence on the business consist of customer,
investors and government which are required to me managed closely and keep satisfied.
CONCLUSION
From the above assignment it has concluded about different functional areas of the
organisation which consist of management, human resource accounting etc. The internal and
external stakeholder consisted of owner, managers, employees, customers, suppliers,
government, creditors etc. Moreover, It has provided information about the level of stakeholder
influence on the business operation. The stakeholder matrix is created which has provided
information about the influence and power of the stakeholders. The comparison of the wholesale
and retail industry is made which has provided information that stakeholder have higher interests
in the wholesale industry.

REFERENCES
Books and Journals
Andriof, J., & Waddock, S. (2017). Unfolding stakeholder engagement. In Unfolding stakeholder
thinking (pp. 19-42). Routledge.
Bouzon, M., Govindan, K., & Rodriguez, C. M. T. (2018). Evaluating barriers for reverse
logistics implementation under a multiple stakeholders’ perspective analysis using grey
decision making approach. Resources, conservation and recycling. 128. 315-335.
Crowther, D. (2018). A Social Critique of Corporate Reporting: A Semiotic Analysis of
Corporate Financial and Environmental Reporting: A Semiotic Analysis of Corporate
Financial and Environmental Reporting. Routledge.
Font, X., Guix, M., & Bonilla-Priego, M. J. (2016). Corporate social responsibility in cruising:
Using materiality analysis to create shared value. Tourism Management. 53. 175-186.
Hawn, O., & Ioannou, I. (2016). Mind the gap: The interplay between external and internal
actions in the case of corporate social responsibility. Strategic Management
Journal. 37(13).2569-2588.
Herremans, I. M., Nazari, J. A., & Mahmoudian, F. (2016). Stakeholder relationships,
engagement, and sustainability reporting. Journal of Business Ethics. 138(3). 417-435.
Kettunen, J. (2015). Stakeholder relationships in higher education. Tertiary Education and
Management. 21(1). 56-65.
Sterling, E. J. & et.al., (2017). Assessing the evidence for stakeholder engagement in biodiversity
conservation. Biological conservation. 209. 159-171.
Zientara, P. (2017). Socioemotional wealth and corporate social responsibility: A critical
analysis. Journal of Business Ethics. 144(1). 185-199.
Online
Business Stakeholders. 2018. [Online]. Available through :<https://courses.lumenlearning.com>
S T A K E H O L D E R P O W E R / I N T E R E S T A N A L Y S I S . 2 0 1 8 . [Online]. Available
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