Internal and External Stakeholder Analysis – Coles Supermarket Case Study 2022

Running head: INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
Internal and external stakeholder analysis – Coles Supermarket
Name of the Student
Name of the University
Author Note

1INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
Executive summary
In this study, it has been identified that in order to drive the organizational performance the
contribution of both the internal and external stakeholders cannot be denied. In case of Coles
Supermarket it has been identified that in order to influence the financial status of the company
the contribution of internal stakeholders is very important. With the effective economic
contribution in retail sector the government authorities interrupt in business practices by
introducing various rules and regulations in the market. In order to maintain the smooth
distribution channel contribution of suppliers in not be ignored. By including employees,
customers as well as investors, the key performance management in the company can be driven.
It is true that investors of the company have significant impact in terms of ensuring the high
business revenue. On the other hand employees of the organization are the primary internal
stakeholders who directly perform for ringing the high profitability rate in the company.

2INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
Table of contents
Introduction and background of the company.................................................................................3
Discussion........................................................................................................................................3
Functional area.............................................................................................................................3
Identify the internal and external stakeholders and their roles....................................................4
Internal stakeholders and job roles..............................................................................................5
External stakeholders and job role...............................................................................................5
Nature and degree of interest of the key stakeholders.................................................................6
Interest level for key stakeholders...............................................................................................6
Stakeholder Matrix......................................................................................................................8
Comparison of stakeholders’ interest in the industries................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

3INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
Introduction and background of the company
Stakeholders have the significant impact in case of controlling the functional activities in
an organization. Not only the internal activities, but also stakeholders have important
contribution for managing the external business activities (Vidaver-Cohen & Brønn, 2015). The
purpose of this study is to shed light on the functional activities of Coles and analyze the
contributions off internal and external stakeholders in case of influencing the business functions
of the company. The study has shed light on the Coles supermarkets Australia Pty Ltd. which has
the largest consumer and retail service chain. From more than 90 years the company is
maintaining its outstanding services in the market (Coles.com.au, 2019). Analyzing the vision of
Coles, it has been identified that by providing trustable buying sources, it aims to introduce
standard quality of services in the market. By continuing this it can be said that Coles aims to
support each other for getting things done properly. Analyzing the business operations of the
company, it has been identified that both thee online and offline services are being provided by
the company.
Discussion
Functional area
Analyzing the major functional area of Coles, it has been identified that in order to
develop the business performance in the retail sector that the company has included various
departments such as service, operations, marketing, finance, information technology and human
resource (Bourne, 2016). These departments plays the significant role in terms of demonstrating
the required key for bringing the better performance management practices in the workplace.
Analyzing the functional ability in the company, it has been identified that with the strong
organizational structure as well as effective marketing strategy the company has gained

4INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
competitive advantage with its uniqueness in the market. Understanding the functioning areas in
the company it can be said that it can help to control the emerging competitiveness in the market
which can indirectly bring improvement in the entire functioning process for developing
sustainable position in the international market.
Identify the internal and external stakeholders and their roles
In order to drive the organizational performance the contribution of both the internal and
external stakeholders cannot be denied. With the effective contribution of stakeholders towards
upgrading the performance management system in the company, sustainable position of the
company in in given market can be ensured (Cooper, 2017).
Figure: Stakeholder Map of Coles supermarket
Source: Created by author
Stakeholders of
Coles
supermarket
Internal
stakeholders
CEO board of
directors
Employees
Stakeholders
Investors
external
stakeholders
Customers Government
Regulators

5INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
Internal stakeholders and job roles
In case of Coles Supermarket it has been identified that in order to influence the financial
status of the company the contribution of internal stakeholders is very important. It has been
identified that the members who are holding important position in financial interest in the
company can be considered as the internal stakeholders. It cannot be denied that employees are
the backbone of every organization (Eskerod & Jepsen, 2016). Based on their skills and abilities
employees directly contribute in the revenue generating process in the company. On the other
hand CEO of the company has strong contribution in case of influencing the organizational
performance in Coles. The CEO of the company is highly concerned about the present and future
risks that can be faced by the company and introduces new managerial initiatives in terms of
ensuring the individuals engagement as well as high market turnover (Fombrun, Ponzi &
Newburry, 2015). Like every companies internal stakeholders of Coles supermarket have the
right for voting in terms of dealing with the organizational risk or introducing new idea in the
market. It is true that not only the employees but also board of directors of the company are
equally responsible for the proper functioning process in the workplace.
External stakeholders and job role
Being the important external stakeholders, government authorities also play an important
role for determining the strong performance management system in the organization. With the
effective economic contribution in retail sector the government authorities interrupt in business
practices by introducing various rules and regulations in the market. In order to maintain the
smooth distribution channel contribution of suppliers in not be ignored (Jain, Aguilera & Jamali,
2017). Especially in case of retail organizations the suppliers and clients are the important
stakeholders who have majority amount of contribution in the revenue generation process in the

6INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
company. On the other hand demonstrating the workplace regulation, several tax Regulation and
employment management regulations are being introduced by the government authority which
bring significant impact on the business operational process.
Nature and degree of interest of the key stakeholders
Both the internal and external stakeholders can be considered as the key stakeholders for
the retail company. By including employees, customers as well as investors, the key performance
management in the company can be driven. It is true that investors of the company have
significant impact in terms of ensuring the high business revenue. On the other hand employees
of the organization are the primary internal stakeholders who directly perform for ringing the
high profitability rate in the company (Jain, Aguilera & Jamali, 2017). On the other hand it is
also true that with the effective contribution of internal stakeholders, internal relationship
between employees and managers get developed which indirectly influence the internal culture
of the company. Based on the high skills as well as performance abilities of the employees high
business revenue can be generated. On the other hand it is true that government bodies can be
considered as the key external stakeholders who are responsible in terms of implementing the
investment process in the market. It cannot be denied that government bodies are primarily
interconnected with the high market share as well as regulatory activities of the company in the
market. In order to increase the organizational performance in the Australian market as well as
increasing the high revenue generation process contribution of government bodies cannot be
ignored (Jones, Harrison & Felps, 2018).
Interest level for key stakeholders
In order to improve the internal relationship between the stakeholders demonstrating the
effective implementation of agency theory of stakeholder management can bring significant

7INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
impact on the performance management system in Coles. It is true that in order to avoid the
various stakeholder conflicts in the workplace effective use of agency theory can bring
significant impact on the stakeholder management system. With the effective implication of
agency theory the conflict based on the principles as well as fundamental activities in the
organization between agents and managers have been identified. Conducting a research on
schools Supermarket it has been identified that the company has got involved in various conflicts
due to the improper strategic balance between the managers and employees (Martínez,
Fernández & Fernández, 2016). it has been identified that due to the involvement of various
conflicts dissatisfaction among the stakeholders has increased the function of managers in the
company. By continuing this it can also be said that the emerging conflict in the workplace is
creating negative impact on the employee loyalty process.
In order to avoid the internal conflict, communication can be considered as one of the
important strategic initiative. Analyzing the situation in course it has been identified that due to
lack of proper communication as a less lack of transparency regarding the wages policies of the
employee conflict has become the common concern for the company. Due to increasing conflict
as well as dissatisfaction among the employees high employee turnover rate is indirectly
impacting on the revenue generation process. In this emerging situation issue regarding the
interaction between external investors and Management the overall productivity in the company
is getting affected. By continuing this it has been identified that the satisfaction among the
investors is impacting on the financial investment ratio which is delaying the outflow of
production process in Coles supermarket.
In terms of ensuring the proper earning revenue in the company the involvement of
shareholders as well as suppliers is important (Jones, Harrison & Felps, 2018). Employees can be

8INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
considered as the important internal stakeholders in Coles supermarket. In that case it cannot be
denied that in terms of generating greater revenue in the company the effective contribution of
employees in the performance improvement system cannot be ignored. in terms of maintaining
regular in flow of capital for the functioning process of the company the investors and
shareholders make there important contribution in the Australian market in case of external
stakeholders it is true that major numbers of involvement of government authority for
determining the performance management system can bring significant impact on the Australian
retail market. It is true that by directly contributing in the profit earning process the stakeholders
brings significant impact in the operational process of the company.
Stakeholder Matrix
Stakeholders Impact Influence
Factors important to
stakeholder
Strategy for
stakeholder
engagement
Employees High Moderate
Work-life balance,
Training and
development.
Regular meetings
CEO High High High return in finance
Feedback at regular
intervals of 4 or 7
months.
Clients High High
Standard service
quality
Feedback at regular
intervals of 4 or 7
months.
Governmental Moderate High Greater financial Press meetings at

9INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
bodies contribution
regular intervals of 6
to 12 months.
Source: Created by author
Comparison of stakeholders’ interest in the industries
The major stakeholders of Wesfarmers include the board of directors along with so
governmental bodies, employees and other nations, where the business operations of the
company are being done (Sustainability.wesfarmers.com.au, 2019). Employees are the important
internal stakeholder of the company who have made their important contribution in terms of
helping the company for operating in the Global market. In case of both the companies, suppliers
play an important role for demonstrating the high market share. In order to generate the high
business revenue clients are also very important. Belonging from the retail market, the influences
of government bodies in Coles and Wesfermers are similar. It is true that based on the influences
of government bodies on the operational process decision making process of the companies get
changed (Martínez, Fernández & Fernández, 2016).
Analyzing the operational process in Wesfermers, it has been identified that the company
is committed towards the long-term outcome for providing the benefits to both the internal and
external stakeholders. The company regularly tries to understand the expectation of its
stakeholders and based on the stakeholders expectation the changes are being introduced in the
workplace. In its sustainability performance report feedback of the stakeholders are being
positively analyzed. In order to bring the potential impact on business based on the interests of
the customers’ variety of ways are being introduced for improving their communication to solve
the organizational issues.

10INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
In the competition of stakeholders of both the retail companies it has been identified that
Wesfermers faces huge influence of the suppliers due to its strong distribution channel. In both
the cases employees have played influential role in terms of driving the decision making
practices in the workplace (Sustainability.wesfarmers.com.au, 2019). However it is also true that
in case of Wesfermers the contribution of employees in the decision making process is
comparatively high then Coles supermarket. Analyzing the business operations of both the
companies it has been identified that following the customer centric operational initiative in the
market these companies have the developed strong image in the retail sector. Both the industries
depend on maturity of clients in terms of I need the better revenue and competitive advantage in
the industry.
Conclusion
In order to generate high profitability rate in the market stakeholder engagement is very
important. Influencing both the internal and external activities of the company stakeholders play
an important role for driving the performance management system. Ensuring the engagement of
individuals as well as management operation stakeholders try to deal with the emerging
challenges faced by the company. In order to hold the financial interest of the company
contribution of internal stakeholders cannot be ignored. On the other hand the external
stakeholder focus on maintaining all the regulatory framework of the company so that high
competitive advantage can be gained.n

11INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
References
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12INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
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