Importance of Stakeholder Analysis in Company Operations

Running head: STAKEHOLDER-ANALYSIS
STAKEHOLDER ANALYSIS
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1STAKEHOLDER ANALYSIS
Executive Summary
This study aims at highlighting the importance of the role the stakeholders play in a company,
their interests in the operation of the company and the influence these stakeholders have in
the company. There are two main types of stakeholders and they have different interests in
the company. It is thus common to have conflicts between the different interest groups. The
company should try to balance the interests of all the groups only then it can be successful.
Coca- cola maintains a balance between the interests of different stakeholders. The following
study has discussed about the different stakeholders of the company, their roles, their
influence and the stakeholder matrix.

2STAKEHOLDER ANALYSIS
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Identify functional areas.........................................................................................................4
Identify internal and external stakeholders and their roles....................................................6
Internal stakeholders..........................................................................................................6
Employees of the company................................................................................................6
Owners...............................................................................................................................6
External stakeholders.........................................................................................................6
Customers...........................................................................................................................6
Suppliers.............................................................................................................................7
Creditors.............................................................................................................................7
Identify the nature and degree of main stakeholders’ interests, and implications of
conflicting interests................................................................................................................7
Identify the level of main stakeholders’ influence.................................................................8
Stakeholder matrix...............................................................................................................10
Comparison and identification of stakeholder dissimilarities..............................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

3STAKEHOLDER ANALYSIS
Introduction
Stakeholders are group of individuals that have a stake or interest in the organization
and without these people, the organization cannot work (Schenkel et al., 2015). There are two
types of stakeholders – the external stakeholders and the internal stakeholders. The internal
stakeholders are also called as primary stakeholders because this group has a direct influence
on the company and are engaged in some economic transactions with the company such as-
employees, creditors, suppliers, customers and others. The external stakeholders are called as
secondary stakeholders because they do not directly affect and are affected by the working of
the company but may indirectly do so (Boesso, Favotto & Michelon, 2015). Examples of a
few external stakeholders are- public, media, other business groups and social communities.
Stakeholder analysis is used for system assessment and to identify the changes that are
brought to the system due to the relationship with different stakeholders. It is the process of
balancing all the demands of the different interest groups for fulfilling any obligation of the
company. This technique is mostly used in the initial phase of a project to see the attitude of
the stakeholders towards the potential changes. This technique can also be used for assessing
the changes in the attitudes of the stakeholders over a period. The main aim of the study is to
carry out an analysis of the stakeholders of Coca-Cola Company. This will include analysis
of both internal and external stakeholders and the degree and nature to which they influence a
company and implication of conflicting interests between them. The comparison of two
industries will be done to identify the main points of stakeholder dissimilarities and to
analyse the differences in their interests and influences.