Stakeholder Engagement and Competitive Advantage

This assignment delves into the concept of stakeholder engagement and its significance in achieving competitive advantage in business. It examines the various types of stakeholders, their roles, and the benefits of effective stakeholder engagement. The analysis also discusses the importance of considering stakeholder perspectives in decision-making and how this can lead to improved business outcomes.

How do stakeholders
perceive added value?

Table of Contents
TOPIC: ............................................................................................................................................1
CHAPTER 1- INTRODUCTION....................................................................................................1
CHAPTER 2 – LITERATURE REVIEW.......................................................................................3
CHAPTER 3 – RESEARCH METHODOLOGY...........................................................................6
TIME SCALE .................................................................................................................................9
CHAPTER 4- ETHICS AND STAKEHOLDERS .......................................................................10
CHAPTER 5– REFLECTION & RESOURCES...........................................................................11
CHAPTER 6 – REFERENCES.....................................................................................................12
.......................................................................................................................................................13

TOPIC:
“Evaluating stakeholder engagement and assessing the relationship between added value
and competitive advantage”. A case study of McKinsey & Company.
CHAPTER 1- INTRODUCTION
Overview of the Research:
A person, organisation or group that has concern or interest in an enterprise are known as
stakeholders. They can affect or be impacted by the business's objectives, policies and actions.
Owners, government, employees, creditors, directors, unions, community and unions are main
stakeholders for the all firm from which they draws its resources. Stakeholder engagement is
more essential and significant for the organisation in order to maximise better relation and gain
competitive advantages within predetermined period of time (Benn, Edwards and Williams,
2014). Without involvement of stakeholders company can not gain competitive edge as well as
not accomplish their long term goals and objectives. So, contribution of the stakeholders in
business policies, strategies, process and services are more significant for the development and
success of company. This proposal must emphasise on an important business and management
issues in the organisation. In this research chosen organisation is McKinsey & Company that
helps the public sector bodies, leading companies and social sector enterprise in the United
Kingdom.
Background of the Project:
McKinsey & Company is an American management consulting organisation in across the
world. They conducts quantitative and qualitative analysis in order to measure management
decisions across the private and public sector. It was founded by Kevin Sneader in 1926 and
having number of employees approx 27,000. McKinsey's consulting has assist to launch many of
the norms or conditions in business and bring to many of the main successes and failures in
organ8isati in the modern era. Sometime they face management related issue which highly
hinder on their performance and profitability (Burt, 2017). In order to overcome suck problem
business entity involve their all stakeholders in the decision making process which benefited to
them to maximise their sales and revenues. Thus, better relationship with the stakeholders are
essential for the company to gain competitive benefits and expand their business operations at
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different place. Beside this, consultancy firm wants to enlarge their business functions and
activities in many other location in this they need to engage their all employees in the decision
making process and many other activities.
Research Aim: “Evaluating stakeholder engagement and assessing the relationship between
added value and competitive advantage”.
Research Objectives:
 To examine the importance of stakeholders engagement in business operations.
 To identify the various ways through which entity can encourage its stakeholders to be
participative in order to add value in operations of enterprise.
 To determine relationship between stakeholders engagement and competitive benefit.
 To ascertain the main theories that can be utilise to gain Stakeholders engagement.
 To recommend various ways through which stakeholders engagement can be enhanced.
Research Questions:
 What are the importance of stakeholder engagement in business operations?
 What are the ways through which entity can encourage its stakeholders to be participative
in order to add value in operations of enterprise?
 What are the main theories that can be utilise to gain Stakeholders engagement?
 What are the effects of better relationship between stakeholders engagement and
competitive benefit?
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CHAPTER 2 – LITERATURE REVIEW
This is identify as an essential aspect of research proposal. In nature it is effective in gathering
accurate data through the use of secondary source. This source help the business in analysing of
writers and authors point of view (Cascetta and et. al., 2015). Literature review supports in
organising in-depth investigation as to implementing entire activities of research program in an
effective and efficient manner. This part of investigation give a strong theoretical framework
which supports in accumulating information via secondary sources like journals, books, online
sites and many other helping elements. Further, in this past project of research is also supports in
analysing the point of view of various writers as to collecting appropriate outcome for the
windup of research.
The importance of stakeholders engagement in business operations.
As per the point of view of Concannon and et. al., (2014) stakeholder engagement in the
business operations is more important and essential for the success and growth of organisation.
Further it support the company to gain competitive advantages and growth their business
operation in different places. McKinsey & Company face some issues related to the management
which can effects on its performance and profitability ratio (The Importance of Stakeholders,
2018). Thus, in order to overcome such issues effectively business manager need to engage their
all stakeholders such as suppliers, customers, employees and many other in the decision making
process. It benefited to the organisation to gain competitive benefits and maintain their strong
image in global marketplace. Therefore, better and effective involvement of their all stakeholders
in the business operations highly beneficial for them to accomplish their long term targets and
objectives within predetermined period of time.
The various ways through which entity can encourage its stakeholders to be participative in
order to add value in operations of enterprise.
Stakeholder are main part in the business organisation to add some value for the growth
and success of company. In this McKinsey & Company follows some ways which help them to
easily maintain their relationship with employees. Some ways that are shown as below:
Communicate: According to the Esmail, Moore and Rein, (2015) accurate
communication is significant for the company to encourage stakeholder in the added value in the
business operations. Before purpose to engage and influence all stakeholders, it’s important to
look to realise the group they will be functioning with and depending on throughout the process
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of the project lifecycle. Exchanging information or data with stakeholders is more essential, but
it is evenly crucial to first gather data about stakeholders.
Plant it: As per the point of view of Forsythe and et. al., (2016) A more essential and
measured ways to stakeholder engagement is important and therefore boost. Finance in
conscientious planning before attracting stakeholders can take significant benefits.
Compromise: It is another important way to encourage and promote all stakeholder in the
added value process about business enlargement. According to the Inam and et. al., (2015) In
order to set up the most acceptable baseline crosswise a fit of stakeholders' diverging priorities
and expectations. Measure the relative essential of entire stakeholders to launch a adjusted
hierarchy against the project needs and united by the project Helper.
Relationship between stakeholders engagement and competitive benefit.
Better and strong relationship between the competitive benefits and stakeholder
engagement are more effects for the growth and success of organisation in limited time duration.
As per the point of view Kaur and K. Lodhia, S., (2014) both are interrelated with each other
because engagement of the stakeholder are beneficial for them firm to maximise their sales. For
example: participation of the stakeholder in the decision making process and many other
activities, company can easily take an appropriate decision about the progress and development
of them at different level.
The main theories that can be utilise to gain Stakeholders engagement. Effective and
string relationship with them is benefited to the company to accomplish their preset objectives
and goals within predetermined time duration. It is also important and significant for the
McKinsey & Company to solve their management related issue as well as gain competitive
advantages. This both are interconnected and give more benefits to the consultancy firm to
expand their business operations and functions at different places.
The main theories that can be utilise to gain Stakeholders engagement
Theories are main and essential way to engage their all stakeholders in the business
process and operations. Thee are different theory which are determined as below:
Consideration of Stakeholder Theory: According to the Li and Liu, (2014) These argue that the
business has obligations not just to investor but to the another groups that are impacted by its
doings, and that institution should accordingly be handled in a way that increase outcomes for all
stakeholder. It is beneficial for the company because with the help of this model consultancy
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firm easily divide their work and activities as per the employees capability. It is a part of
management principle that effects on stakeholder performance and productivities. Main issue of
this theory is conflict among entire workforce.
Shareholder theory: According to the Meihami and Meihami, (2014) These theory was
proposed by Milton Friedman and it being that the key responsibility and duty of business entity
is to maximise profitability. It is mainly based on the assumption that administration are hired as
the broker of the shareholders to establish the organisation for their welfare, and therefore they
are lawfully and morally supposed to do their interests. Such theory gives a long term financial
prospect on which to base strategic decision which is beneficial for the consultancy firm to
maximise involvement of stakeholder in the its operations. Implementation and development of
this theory can be complex and long which effects on business operations in negative manner.
Stewardship theory: As per the point of view of Mok, Shen and Yang, (2015) in this
theory managers are assumed in order to act in their self interest or curiosity at the shareholder
expenses. It specifies few mechanisms which decrease agency loss considering tie executive
compensation, managers incentive schemes and also levels of benefits by rewarding them
financially or serving shares that line up financial curiosity of executives in order to prompt them
for accurate performance. Such model help the company to reduce the issue and achieve
competitive advantages in given time period. This theory reinforces the egos of the senior
executives which is main disadvantages for the consultancy firm.
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CHAPTER 3 – RESEARCH METHODOLOGY
It is another important and useful element of research project which is effective in nature
to implementing business operations systematically. This part of the research project support the
researcher in reaching at better outcomes easily. Research methodology assist the investigator to
analysis better ways and methods to conducting an effective research program. Thus it is
essential and significant for the each and every organisation to easily fulfil basis needs and wants
of the customers towards employees engagement and relationship between competitive edge and
added value (Saeidi and et. al., 2015). There are different aspects of research methodology which
are determined as below:
Research Design: The entire part of the research is relay on the research design which is
used by investigator for determining the impact. There are mainly 3 kind of research design
including exploratory, experimental and descriptive. According to the current topic of research,
investigator only follow descriptive because it is more suitable and useful for the topic. Exploratory Research: Just as the word implies, it look into, that is to analysis regarding
something by responding the question in How or What manner. Descriptive Research: It is a more in-depth and detailed investigation, that answered the
some question what and how. Explanatory Research: This seeks to inform the subject topic state researched and effort
to answer the some question what, how and why.
Research philosophy: These are divided into two parts such as positivism and another
one is Interpretivism. Interpretivism research is more suitable and useful in the report because
with the help of this they evaluate accurate information which will further outputs in arriving at
the relevant conclusion (Schilke, 2014). Positivism philosophy is not appropriate for the
investigator for carrying out investigation. It will alter to support the investigator with various
kind of methodologies and as such ignoring unrelated and inappropriate works. In conclusion, by
knowing the basic significant of research philosophy and knowing its benefits, it assist the
investigator to be more originative and exploratory in their research methods.
Data Collection: For gathering accurate amount of information, there are mainly two
approach which will be followed in the current topic of research. These are primary and
secondary sources. Under primary information, questionnaire will be designed which will
support in gaining the appropriate as well as useful information from the respondents. In case of
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secondary resources, journals, books will be bring up that support the investigator in order to
collect the data about the employee engagement and relationship between competitive
advantages and add value in the business operations. Secondary sources describe, interpret,
comment upon, discuss, analyze, summarize, process and evaluate primary sources. Secondary
source parts can be articles in popular magazines, book newspapers or movie reviews, or articles
analysis in scholarly journals that talk about or measure someone else's freehanded research.
Beside this, it will also assist in getting the data about how competitive advantages can be
created via employees engagement (Sherman and Ford, 2014). Both are useful but in the current
research, investigator requires to determine the relevant and authentic data.
Data Analysis: It will be completed with the assist of thematic evaluation. Under this,
different themes will be made which is mainly based on research questions and assist in
conducting investigation effectively and efficiently. Thus such method of data analysis is more
useful and relevant for the company to identify response of the respondents about the importance
of employees engagement and relationship between the added value and competitive advantage.
Data Sampling: It is another important and useful part of the research methodology. This
approach is used by the investigator in order to select population on behalf of entire respondents
via which better outcomes could be interpret in an effective manner. It will support and enhance
in increasing the efficiency and effectiveness in research project through which determined
results could be accomplished. For this project the chosen approach of sampling is simple
random sampling which acquire arrange on associates of McKinsey & Company so that their
perspective or opinion could be determine which outcome in deriving good outputs in frame.
This will support in increasing effectiveness in responsive profit via which better study outcomes
could be find out (West, Ford and Ibrahim 2015). It will effect in cut down bias from
investigation where entire individual opinion acquire vary from each other to evaluating effective
and appropriate gain. therefore, sampling enable in create study appropriate and easy in frame for
increasing and deriving suitable outcome. In this selected sample size is 30 which is appropriate
for the consultancy firm to analysis customers response towards employee engagement.
Limitation: There are different limitation and rules which are witnessed during the
research program. In the research study main issue is time and cost which is faced by
consultancy firm. The research topic is large and for acquiring the response, specific time period
is needed. As per the conclusion it can be said that period of time is minimum for the entire
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investigation (Benn, Edwards and Williams, 2014). Three limitations of this research project
have been recognized and careful intellection will be acknowledged to mitigate the actual effects
when undertaking the investigation and analysing the information.
 According to the interview entire aspects get conform and have a various nature in frame.
This require to know better and proper by single person of an organisation as they do not
give accurate opinion in respect to project.
 The study is mainly based on a small size of sample.
Ethical Standard: It is another main part of research in this different ethical considerations that
can be properly observed by the organisation. This includes:
 Business organisation has to gather accurate data from entire people and thus
organisation cannot use this information in false way (West, Ford and Ibrahim, 2015).
 It has to add accurate and useful questions which are mainly linked with the investigation
It cannot incorporate extra questions and irrelevant which is not understandable to all
users.
 It has to collect information and data in careful manner so that relevant information can
be gathered. Through this it can easily find the conclusion and can also find the
suggestions.
TIME SCALE
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CHAPTER 4- ETHICS AND STAKEHOLDERS
Stakeholder: The groups and people that supply an organisation with its productive
resources and have a claim on its resources. Customers, shareholders, Employees, managers,
environment and local community are main stakeholders in the business organisation that highly
effects on the its performance and operation in a direct manner (Burt, 2017).
Business Ethics: It includes different rules and regulations that highly influence on the
business performance and functions in a direct way. The ethical perspective asserts the
wrongness or rightness of particular organisation action independently of any stakeholder or
social obligation.
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CHAPTER 5– REFLECTION & RESOURCES
Employees engagement is one of the main and essential part for the development and
success of each and every organisation. There are different resources which are used by the me
in order to analysis basic needs and wants of the respondents about the employees engagement
and relationship between added value and competitive advantages. In this I am play vital and
effective role in preparing a questionnaire and conducting interview, these are based on the
customers point of view. There are some resources which are followed by me are determined as
below:
I had used different kind of research methodology which benefited in the identification of
all accurate data and information about the writers pint of view. In this I had selected 30
respondents which are accurate in number and help them in determination of employees
engagement benefits to the company. In order to measure employees performance as a manager I
am prefer different tools such as Gantt chart, critical path and many other (Cascetta and et. al.,
2015). All these are beneficial for the company to gain competitive advantages and achieve
better outcomes in limited time period. Thus, it is essential and significant to gain competitive
benefits within preset time period.
During the research program I am play vital and effective role in selecting appropriate
research strategy, design, philosophies and many other techniques. All these are essential and
useful in analysation of customers response about employees engagement and many other
activities. Therefore, it support them to gain better outcomes and achieve competitive advantages
in an easy manner. Another sources which are used by me is to follow different communication
channels, it benefited to the manager to maintain strong and long term relation with the
workforce. Therefore, it assist them to maximise effectiveness and efficiency in limited time
duration. Research design is another important resources which support in identification of
appropriate information or data. In this research I had different roles and responsibility about
evaluation of customers needs and wants. Therefore, it is necessary because of is the main part
for the development and growth of the organisation in an effective and systematic manner.
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CHAPTER 6 – REFERENCES
References
Books and Journals
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate
sustainability. Routledge.
Burt, R. S., 2017. Structural holes versus network closure as social capital. In Social capital (pp.
31-56). Routledge.
Cascetta, E., Carteni, A., Pagliara, F. and Montanino, M., 2015. A new look at planning and
designing transportation systems: A decision-making model based on cognitive
rationality, stakeholder engagement and quantitative methods. Transport policy. 38.
pp.27-39.
Concannon, T. W. and et. al., 2014. A systematic review of stakeholder engagement in
comparative effectiveness and patient-centered outcomes research. Journal of general
internal medicine. 29(12). pp.1692-1701.
Esmail, L., Moore, E. and Rein, A., 2015. Evaluating patient and stakeholder engagement in
research: moving from theory to practice. Journal of comparative effectiveness
research. 4(2). pp.133-145.
Forsythe, L. P. And et. al., 2016. Patient and stakeholder engagement in the PCORI pilot
projects: description and lessons learned. Journal of general internal medicine. 31(1).
pp.13-21.
Inam, A., Adamowski, J., Halbe, J. and Prasher, S., 2015. Using causal loop diagrams for the
initialization of stakeholder engagement in soil salinity management in agricultural
watersheds in developing countries: A case study in the Rechna Doab watershed,
Pakistan. Journal of environmental management.152. pp.251-267.
Kaur, A. and K. Lodhia, S., 2014. The state of disclosures on stakeholder engagement in
sustainability reporting in Australian local councils. Pacific Accounting Review. 26(1/2).
pp.54-74.
Li, D. Y. and Liu, J., 2014. Dynamic capabilities, environmental dynamism, and competitive
advantage: Evidence from China. Journal of Business Research. 67(1). pp.2793-2799.
Meihami, B. and Meihami, H., 2014. Knowledge Management a way to gain a competitive
advantage in firms (evidence of manufacturing companies). International letters of
social and humanistic sciences. 3. pp.80-91.
Mok, K. Y., Shen, G. Q. and Yang, J., 2015. Stakeholder management studies in mega
construction projects: A review and future directions. International Journal of Project
Management. 33(2). pp.446-457.
Saeidi, S.P. and et. al., 2015. How does corporate social responsibility contribute to firm
financial performance? The mediating role of competitive advantage, reputation, and
customer satisfaction. Journal of business research. 68(2). pp.341-350.
Schilke, O., 2014. On the contingent value of dynamic capabilities for competitive advantage:
The nonlinear moderating effect of environmental dynamism. Strategic management
journal. 35(2). pp.179-203.
Sherman, M. H. and Ford, J., 2014. Stakeholder engagement in adaptation interventions: an
evaluation of projects in developing nations. Climate Policy. 14(3). pp.417-441.
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West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press, USA.
Online
The Importance of Stakeholders. 2018. [Online]. Available through :<https://bizfluent.com/info-
8704286-importance-stakeholders.html>.
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