Impact of Internal and External Stakeholders on Business Practices

This report analyzes the impact of internal and external stakeholders on business practices, using Rosewoods as a case study. It explores the different types of stakeholders and their engagement levels, and discusses strategies for maintaining stakeholder satisfaction and engagement.

Business Environment
(BMS412)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO3: Impact of internal and external stakeholders on business practices.......................................3
CONCLUSION................................................................................................................................5
REFERENCE...................................................................................................................................6

INTRODUCTION
Business environment is the external organizational condition in which company tend to provide
its services to the customers. Rosewoods is the chosen organization for the analysis in this report.
Evaluation of organizational stakeholder and the impact which is caused by the stakeholders is
done in this report.
MAIN BODY
LO3: Impact of internal and external stakeholders on business practices
Stakeholders may be an individual or an group of individuals which are having high interest in
organizational activities because they are able to affect the organizational activities or are being
affected by it (Chebbi and et.al, 2020). Due to which it is important for organizations like
Rosewoods that it is able to maintain its stake-holder's engagement with the organizational
activities through which it can achieve an efficient organizational working within the
organization. On the basis of their engagement stakeholders are categorised into two different
categories which are as following.
1. Internal stakeholder- Internal stakeholders are the type of stakeholders which tend to be
operating within the organization this include stakeholders like employee work force and
many more.
2. External stakeholders- External stakeholders are the once who tend to be operating in
the external organizational environment but are able to affect the goal achieving
capability of the company. This include stakeholders like, customers, investors, etc.
Following is the stakeholder matrix on which organizations like Rosewoods tend to develop its
working strategy. So that it is able to satisfy all the stakeholders and maintain its efficient
working progress the stakeholders are being segregated in two different factors which are power
and interest which is as following.

Keep satisfied- This is the type of stakeholder which is having high organizational power and is
able to affect the organizational working process and because of which company has to make
sure that it is able to satisfy this type of stakeholder. However despite of their high power their
interest in the organizational activities is low and due to which company has to keep them satisfy
for effort less smooth working (Freudenreich, Lüdeke-Freund and Schaltegger, 2020). The
higher authorities of the Rosewoods are considered in this segment because they are responsible
for maintaining efficient organizational working so that company is able to achieve its desired
target. Due to this organizational employees on the higher level are considered in this segment.
Manage closely- This is the type of stakeholders which is having high organizational power and
also as having high interest in the organizational activities and because of which Rosewoods has
to ensure that it is able to satisfy this type of stakeholder. Through this it can make sure that
organizational working is happening efficiently and with that it is able to achieve high level of
working productivity (de Abreu and et.al, 2021). Rosewoods investors can be considered in this
type of stake-holders because they are having high level of power to affect the company's
working process but are significantly less interested in the organizational working and because of
which they are considered in this segment.
Monitor (Minimum efforts)- This is the type of stakeholder which is having low power to
affect the organizational working process and also having low interest in the organizational
activities. Company has to make less efforts for satisfying this type of organizational
stakeholders, however it has to analyse their changing requirements so that it make sure that it is
able to make increase their level of interest in the organizational activities. This type of stake-
holder include organizational employees which are having low level of engagement with the

organizational activities and also are having low organizational power within Rosewoods so that
it can affect the organizational activities.
Keep informed- This is the type of stakeholder which is having high level of interest in the
organizational working of the Rosewoods but also at the same time is having low power. Due to
this company has to keep them informed about the organizational activities so that it is able to
maintain their level of engagement with them through which it can achieve high level of
organizational loyalty of the stake-holders through which chances of goal achievement can be
increased (Von Wallpach, Hemetsberger and Espersen, 2017). Organizational customers are
considered in this section because of their high level of interest in the organizational activities
and also due to their considerable low power to affect the organizational working.
Company's efforts to engage stakeholders
Internal stakeholder- To maintain and to achieve high level of engagement of organizational
stake-holder within the organization company tend to organize several activities through which it
can make sure that is able ensure that all the organizational stakeholders are being satisfied. With
that internal stakeholders include organizational employees and due to which it can also
implement internal recruitments through which it can make sure that employee's level of
engagement with the organizational activities is being increased. With that company must tend to
make sure that it is able to implement several creative ways through which it is able to make sure
that all the responsible stakeholders are being satisfied and company is able to achieve its desired
target.
External stake-holders- In order to maintain the level of engagement of external stake-holder
company may tend to implement several loyalty programs through which it can make sure that
stake-holders are being satisfied. With that it can also tend to make sure that it is able to provide
several cost reducing attractive offers to the stake-holders through which it can make sure that it
is able to develop a positive image for the customers (Lim and Greenwood, 2017). Through
which efficient stake-holder engagement can be achieved, through this step Rosewoods can
make sure that it is able to achieve high level of stake-holder engagement.
CONCLUSION
From the evaluation in the report it can be concluded that organizations like Rosewoods have to
implement several ways through which it can make sure that it is able to maintain the high level

of engagement of organizational stakeholders. Through which it can make sure that it is able to
avoid the negative impact of stakeholders.

REFERENCE
Books & Journals
Chebbi, H. and et.al, 2020. Focusing on internal stakeholders to enable the implementation of
organizational change towards corporate entrepreneurship: A case study from
France. Journal of Business Research. 119. pp.209-217.
Lim, J.S. and Greenwood, C.A., 2017. Communicating corporate social responsibility (CSR):
Stakeholder responsiveness and engagement strategy to achieve CSR goals. Public
Relations Review. 43(4). pp.768-776.
Von Wallpach, S., Hemetsberger, A. and Espersen, P., 2017. Performing identities: Processes of
brand and stakeholder identity co-construction. Journal of Business Research, 70,
pp.443-452.
de Abreu, M.C.S. and et.al, 2021. From “business as usual” to tackling climate change:
Exploring factors affecting low-carbon decision-making in the canadian oil and gas
sector. Energy Policy. 148. p.111932.
Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2020. A stakeholder theory perspective
on business models: Value creation for sustainability. Journal of Business
Ethics. 166(1). pp.3-18.