Practical Stakeholder Negotiation for Improving Business Performance: A Case Study of Kojo Furoa

This article discusses the importance of practical stakeholder negotiation for improving business performance through a case study of Kojo Furoa, a Japanese multinational manufacturing company. It highlights the significance of stakeholder theory and interest-based negotiation in achieving successful project outcomes. The article also explores the challenges faced by the company and the measures taken to reduce supply cost and increase profitability.

Practical Stakeholder
Negotiation

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
REFERENCES................................................................................................................................5

MAIN BODY
 The present case involves the discussion relating to improving the performance of Kojo
Furoa which is a Japanese multination manufacturing company and is having a large base
of operation. The company is located in the city of Cardown within the Northeast
England and belongs to British manufacturing sector (Heathcote, Butlin and Kazemi,
2020). The company has been operating in Cardown since its opening that that 1980 and
now currently the company is also hosting the corporation’s European headquarters as
well. Along with this, the company is also having good and strong relation with the local
community which is good for development and growth of company. also, the company is
employing large people within the UK operation. Along with this, the company has also
received the formal recognition relating to the standard of working condition which is
good.
 In addition to this, the company also work for the local corporate social responsibility as
well that is working for the development of the local community as well. with all these
benefits the company is having a good position within the current competitive market and
this involves the improving workplace and working pattern in more effective and
efficient manner (Nguyen and Mohamed, 2018). Also, the company focuses on
increasing the good relation with the supplier and as a result of this, the working
efficiency of the company increases.
 But in against of this, the relation with domestic supplier has started beginning worst due
to previous factory manager as she decided to shift the purchase of various parts relating
to foreign companies. But in the present working there is decline in the profitability and
due to this, the company is planning to cut the cost. Hence, for this purpose the company
is planning to close the major plant in UK and to offshore the manufacturing from some
other country. With respect to this, the regional division manager of the company is
arranging for the meeting in order to analyse the opinion of different stakeholders relating
to the decision.
 Hence, on the basis of the stakeholder theory of interest and matrix, the regional division
manager of company in highly interested in the working of the company. also, in addition
to the interest the person is also having power to take the decision (Young and Ampntel

Chafiz, 2019). The reason pertaining to the fact is that the person is the company
executive and has the power to take the decisions in better and effective manner.
 On the basis of the stakeholder theory it is clear that for engaging within the business, it
is very important for the reason that the power and interest of the company must be good
and effective within the success of the company. Hence, in the present case of the
company, the regional division manager is the person who has the power to take decision
relating to the business and its development (Seeteram and et.al., 2019). Along with this,
the interest of the regional division manager is also high as they work in the betterment of
the company and its working. As per the analysis of regional division manager, the sales
are healthy for the company but the profits are being declining. The reason for the decline
in the profit is the increase in enhanced competition within the international market.
 There have also been take some of the measures by the previous regional division
manager who is currently the COO that is Chief Operating Officer has made strategies for
reducing supply cost (Ilinova, Cherepovitsyn and Evseeva, 2018). This was undertaken
by them in order to reduce cost and increase the profitability. Hence, as a result of this,
the cost of the company was affected but the profits were not attained.
 Thus, on the basis of the stakeholder theory it is necessary that the interest and power of
the stakeholder must be high so that they can work in better and effective manner. Hence,
as a result of this, the regional division manager will be working in better and effective
manner for the attainment of the objective of increasing the operation of business. along
with this, the regional division officer also worked in direction of launching the
employability programme in order to increase the operation of the business.
 the reason pertaining to the fact is that in case the employee of company will be good and
capable then this will result in effective attainment of the business and its objectives
(Seyff and et.al., 2018). Hence, as a result of this, the working efficiency of company will
improve and there might not be need of shutting down the business of UK segment.

REFERENCES
Books and Journals
Heathcote, J., Butlin, C. and Kazemi, H., 2020. Stakeholder Management: Proposal for Research
—Do Successful Project Managers Employ ‘Interest-Based Negotiation’to Create
Successful Project Outcomes?. In Sustainable Ecological Engineering Design (pp. 251-
256). Springer, Cham.
Ilinova, A., Cherepovitsyn, A. and Evseeva, O., 2018. Stakeholder management: An approach in
CCS projects. Resources. 7(4). p.83.
Nguyen, T.S. and Mohamed, S., 2018. Stakeholder management in complex projects. In The 7th
World Construction Symposium (pp. 497-506).
Seeteram, N., and et.al., 2019. Reconciling economic impacts and stakeholder perception: A
management challenge in Florida Gulf Coast fisheries. Marine Policy. 108. p.103628.
Seyff, N., and et.al., 2018, August. Tailoring requirements negotiation to sustainability. In 2018
IEEE 26th international requirements engineering conference (RE) (pp. 304-314). IEEE.
Young, L.M. and Ampntel Chafiz, R., 2019. The Promise of Transparency: Stakeholder Views
on Changes to the EU Trade Negotiation Process. Estey Journal of International Law and
Trade Policy. 19(1753-2020-088). pp.115-132.