Stakeholder Management for Establishing an Organic Grocery Store in Virginia

This article discusses stakeholder analysis for establishing an organic grocery store in Virginia. It covers the role of internal and external stakeholders, managing conflicts, project plan, and cost-benefit analysis.

Running head: STAKEHOLDER MANAGEMENT
Establishing an organic grocery store in Virginia
Name of the student
Name of the University
Author note

1STAKEHOLDER MANAGEMENT
Stakeholder analysis
Barnett, Henriques and Husted Corregan (2018) stated that Stakeholders have a great
impact on the action of an organization, objectives as well as policies. Stakeholders are affected
by the operations of an organization. The stakeholders are commonly recognized with
stakeholder group. Establishing an organic grocery store in Virginia is a project where primary
objective for manager is maximizing wealth of the stakeholders. Employees are the stakeholders
who have an important role in the organization. The stakeholders of the project can be divided
into two types such as internal stakeholders and external stakeholders. Auditing, adjudicators, c-
level, community champions, employees, facilities or real estate teams, finance, IT departments,
human resources, IT departments, legal, loss prevention, marketing as well as outsources are the
internal stakeholders of the project (Jones, Wicks & Freeman, 2017). Apart from this, social
media team, general staffs, store operations and supply chain are the internal stakeholders. On
the other hand, store level internal stakeholders are contract holders, managers, security officers,
store cleaners, store staffs and store maintenance.
On the other hand, external stakeholders are auditors, celebrity endorsements, charities
partnered with supporting, competitors, group of consumers, customers, enforcements bodies,
ethical groups, European Union bodies and the government agencies are the stakeholder analysis
are the external stakeholders involved in the project (Mok, Shen & Yang, 2015). In addition,
NGOs, pressure groups, retail groups, shareholders, soil association, supply chain agencies,
standards agencies, suppliers, supply chain workers, sponsorships, third party intermediaries,
wholesalers as well as retail industry leaders association are the internal stakeholders of the
project. Internal and external stakeholders both have an important role in the project.

2STAKEHOLDER MANAGEMENT
In order to be a successful retailer, it is important to develop proper plan to manage the
stakeholders within the organization. On the other hand, it encourages the business to the
international markets. The issues including internal stakeholders are important to analyze where
conflict is generated. Doh and Quigley (2014) mentioned that the conflicts generated within the
internal stakeholders are conflicts among management and employees of the project. On the
other hand, conflicts between shareholders and environment conflicts. In order to fulfill the
strategy, it is required to minimize conflicts with the suppliers. Another way to resolve the
conflict is using the coordination system to maximize the profits. The suppliers can enlarge
overall function compared to the total all parts of the sub-system. It can develop a mutual
relationship in order to distribute profits properly. In addition, minimizing inventory level,
sharing risks as well as enhancement in sharing information can be achieved with the process.
Moreover, it is required to manage organic raw material suppliers in the system. In order to avoid
the issues, it is required to compete with the other organic store present in the place. Hence, it is
required to spread the business to the new markets (Haefner & Palmié, 2017). On the other hand,
in order to avoid the issues, the organization needs to find the solutions for resolving the
conflicts. Hence, the organization needs to maintain effective relationship with the stakeholders.

3STAKEHOLDER MANAGEMENT
Project plan
Task
Mode Task Name Duration Start Finish Predecessors
Manually
Scheduled Initial Phase 22 days Thu 06-12-
18 Fri 04-01-19
Auto
Scheduled Development of strategy 3 days Thu 06-12-
18
Mon 10-12-
18
Auto
Scheduled Selecting place for the store 6 days Tue 11-12-
18
Tue 18-12-
18 2
Auto
Scheduled Development of contract 5 days Wed 19-12-
18
Tue 25-12-
18 3
Auto
Scheduled Setting term and conditions 5 days Wed 26-12-
18
Tue 01-01-
19 4
Auto
Scheduled
Assessing the customers and
competitors 5 days Wed 02-01-
19
Tue 08-01-
19 5
Auto
Scheduled
Assembling the formal
business plan 6 days Thu 06-12-
18
Thu 13-12-
18
Auto
Scheduled Systematic selection of staffs 25 days Fri 14-12-
18
Thu 17-01-
19
Auto Financial transaction 5 days Fri 14-12-18 Thu 20-12- 7

4STAKEHOLDER MANAGEMENT
Scheduled 18
Auto
Scheduled Legal transaction 7 days Wed 09-01-
19
Thu 17-01-
19 6
Manually
Scheduled
Execution and Management
Phase 13 days Tue 10-07-
18
Thu 26-07-
18
Auto
Scheduled Developing the project 4 days Fri 18-01-19 Wed 23-01-
19 10,9
Auto
Scheduled Testing and evaluation 7 days Thu 24-01-
19 Fri 01-02-19 12
Wbs
Organic Grocery Store in
Virginia
Initial Phase
Development of
strategy
Selecting place for
the store
Development of
contract
Setting term and
conditions
Assessing the
customers and
competitors
Assembling the formal
businees plan
Systematic selection of
staffs
Financial transaction
Legal transaction
Execution and
Management Phase
Developing the
project
Testing and
evaluation
Cost benefits analysis
Cost-Benefit - INPUT
VALUES

5STAKEHOLDER MANAGEMENT
Hardware
$
25,000.00
Software
$
850.00
Development team salaries
$
7,550.00
Training
$
1,300.00
Total Development Cost
$
34,700.00
Hardware
$
15,000.00
Software
$
149.00
Operational Labor
$
14,000.00
Total Operational Cost
$
29,149.00
Approximate salary savings
$
1,50,000.00
Reduced operating cost
$
45,200.00
Total Benefit
$
1,95,200.00
Discount Rate Used 3.00%
Discount Rate
Used
3.00%
Annual Benefits $
1,95,2
00.00
Annual
Operational
Costs
$
29,149
.00
One-Time
Development
Cost
$
34,700
.00
Year of Project
0 1 2 3 4 5 TOTA
LS

6STAKEHOLDER MANAGEMENT
Economic
Benefit
$0.00
$1,95,2
00.00
$1,95,2
00.00
$
1,95,20
0.00
$
1,95,20
0.00
$
1,95,20
0.00
Discount Rate 1.0000 0.9709 0.9426 0.9151 0.8885 0.8626
PV of Benefits $0.00 $1,89,5
14.56
$1,83,9
94.72
$1,78,6
35.65
$1,73,4
32.67
$1,68,3
81.23
NPV of all
BENEFITS
$0.00
$1,89,5
14.56
$3,73,5
09.28
$
5,52,14
4.94
$
7,25,57
7.61
$
8,93,95
8.84
$
8,93,95
8.84
One-Time
COSTS $(34,7
00.00)
Recurring
Costs
$0.00 $
(29,14
9.00)
$
(29,14
9.00)
$
(29,149
.00)
$
(29,149.
00)
$
(29,149
.00)
Discount Rate 1.0000 0.9709 0.9426 0.9151 0.8885 0.8626
PV of
Recurring
Costs
$0.00 $
(28,30
0.00)
$
(27,47
5.73)
$
(26,675
.46)
$
(25,898.
51)
$
(25,144
.18)
NPV of all
COSTS $(34,7
00.00)
$
(63,00
0.00)
$
(90,47
5.73)
$
(1,17,1
51.19)
$(1,43,0
49.70)
$
(1,68,1
93.88)
$
(1,68,1
93.88)
Overall NPV $
7,25,76
4.96
Overall ROI
4.3150
Break-even
Analysis
Yearly NPV
Cash FLOW $(34,7
00.00)
$1,61,2
14.56
$1,56,5
18.99
$
1,51,96
0.19
$
1,47,53
4.16
$
1,43,23
7.05
Overall NPV
Cash FLOW $(34,7 $1,26,5 $2,83,0
$
4,34,99
$
5,82,52
$
7,25,76

7STAKEHOLDER MANAGEMENT
00.00) 14.56 33.56 3.74 7.91 4.96
0 1 2 3 4 5 0
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
$1,000,000.00
Break-Even Analysis: The Western Planner
Search EngineNPV of all BENEFITS NPV of all COSTS
Year
D
o
l
l
a
r
s

8STAKEHOLDER MANAGEMENT
References
Barnett, M. L., Henriques, I., & Husted Corregan, B. (2018). Governing the Void between
Stakeholder Management and Sustainability.
Doh, J. P., & Quigley, N. R. (2014). Responsible leadership and stakeholder management:
Influence pathways and organizational outcomes. Academy of Management
Perspectives, 28(3), 255-274.
Haefner, N., & Palmié, M. (2017). With (out) a Little Help From My Friends? Stakeholder
Management, Innovation Strategy, and Long-Term Firm Performance.
Jones, T. M., Wicks, A. C., & Freeman, R. E. (2017). Stakeholder theory: The state of the
art. The Blackwell guide to business ethics, 17-37.
Mok, K. Y., Shen, G. Q., & Yang, J. (2015). Stakeholder management studies in mega
construction projects: A review and future directions. International Journal of Project
Management, 33(2), 446-457.