Assignment on Stakeholder Strategy Development and Implementation.
Added on 2022-08-24
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Stakeholder Strategy Development and Implementation
Woolworths
[Student Name] – [Student Number]
Woolworths
[Student Name] – [Student Number]
Introduction
Woolworths Supermarket is a supermarket chain based in Australia and
dominates the supermarket sector in the country.
It is owned by Woolworths Group, also based in Australia.
The product umbrella of the Australian supermarket consists of fruit&
veg, meat, seafood & deli, bakery, dairy, fridge & eggs, pantry, freezer,
drinks, liquor, front of store, pet, baby, health & beauty, household and
lunch box (Woolworths.com.au. 2020). Thus, it is evident that
supermarket chain serves several groups of stakeholders including
customer segments consuming its products, suppliers which supply it
with these finished goods and banks which provide online platforms to
process financial transactions like sale of goods and purchase of goods.
An analysis of the stakeholders of Woolworths would be conducted in
order to identify their needs and interests (Riboldazzi 2016).
Woolworths Supermarket is a supermarket chain based in Australia and
dominates the supermarket sector in the country.
It is owned by Woolworths Group, also based in Australia.
The product umbrella of the Australian supermarket consists of fruit&
veg, meat, seafood & deli, bakery, dairy, fridge & eggs, pantry, freezer,
drinks, liquor, front of store, pet, baby, health & beauty, household and
lunch box (Woolworths.com.au. 2020). Thus, it is evident that
supermarket chain serves several groups of stakeholders including
customer segments consuming its products, suppliers which supply it
with these finished goods and banks which provide online platforms to
process financial transactions like sale of goods and purchase of goods.
An analysis of the stakeholders of Woolworths would be conducted in
order to identify their needs and interests (Riboldazzi 2016).
Stakeholder Analysis (summary)
The stakeholders of Woolworths consist of
internal and external stakeholders.
Apanasevic, Markendahl and Arvidsson (2016)
mentions that stakeholders have interests in
the operations of the retail company and are
capable of impacting its operations by their
actions. For example, customers lead to
generation of revenue when they purchase
goods from the retail chain. If they are
dissatisfied with the goods and facilities
provided by Woolworths, they may shift to
other retail chains which would lead to fall in
the revenue generation at the former.
This means that the retail chain namely, should
protect the interests of the stakeholders in
order to enjoy their continuous support.
The stakeholders of Woolworths consist of
internal and external stakeholders.
Apanasevic, Markendahl and Arvidsson (2016)
mentions that stakeholders have interests in
the operations of the retail company and are
capable of impacting its operations by their
actions. For example, customers lead to
generation of revenue when they purchase
goods from the retail chain. If they are
dissatisfied with the goods and facilities
provided by Woolworths, they may shift to
other retail chains which would lead to fall in
the revenue generation at the former.
This means that the retail chain namely, should
protect the interests of the stakeholders in
order to enjoy their continuous support.
Swing Stakeholder: strategic options
The supermarket chain should protect interests of stakeholders.
Mabuma (2018) mention that stakeholders if dissatisfied due to their
interests not being protected, would change their preferences and support
to other firms or in other words swing. For example, if Woolworths fails to
satisfy the members of its board of management who are internal
stakeholders, it would lead to board members resigning and joining other
companies. This would lead to forming of faulty decisions which would
ultimately lead to deterioration of the levels of activities of the retail chains
(Silvius et al. 2017).
Similarly, suppliers of Woolworths, important external stakeholders, if
dissatisfied owing to issues like default or delay of payments, they would
cancel supply orders of goods meant for the retail chain. The outcome of
this loss of supplier support would be that the retail chain would not be able
to sell goods to customers, thus losing customers and consequent revenue
generation (Yazdani et al. 2017).
Thus, it is evident that protection of interests of stakeholders would prevent
them from switching to other retail chains.
The supermarket chain should protect interests of stakeholders.
Mabuma (2018) mention that stakeholders if dissatisfied due to their
interests not being protected, would change their preferences and support
to other firms or in other words swing. For example, if Woolworths fails to
satisfy the members of its board of management who are internal
stakeholders, it would lead to board members resigning and joining other
companies. This would lead to forming of faulty decisions which would
ultimately lead to deterioration of the levels of activities of the retail chains
(Silvius et al. 2017).
Similarly, suppliers of Woolworths, important external stakeholders, if
dissatisfied owing to issues like default or delay of payments, they would
cancel supply orders of goods meant for the retail chain. The outcome of
this loss of supplier support would be that the retail chain would not be able
to sell goods to customers, thus losing customers and consequent revenue
generation (Yazdani et al. 2017).
Thus, it is evident that protection of interests of stakeholders would prevent
them from switching to other retail chains.
Swing Stakeholder:
recommendations
Woolworths should take strategies to ensure that it is able to retain
its stakeholders to the possible extent.
Gaining in the operations of the retail chains would encourage them
to support it for extended terms.
The retail chain can also prevent stakeholders from swinging by
keeping them informed about its strategies (Nederhand and Klijn
2019). For example, if the retail chain keeps the customers about its
future product strategies, it would create a transparent image about
it among the customers. This would encourage the customers retain
their relationship with the retail and prevent them from swing.
recommendations
Woolworths should take strategies to ensure that it is able to retain
its stakeholders to the possible extent.
Gaining in the operations of the retail chains would encourage them
to support it for extended terms.
The retail chain can also prevent stakeholders from swinging by
keeping them informed about its strategies (Nederhand and Klijn
2019). For example, if the retail chain keeps the customers about its
future product strategies, it would create a transparent image about
it among the customers. This would encourage the customers retain
their relationship with the retail and prevent them from swing.
Defensive Stakeholder: strategic
options
The supermarket chain should take the following strategies to
manage defensive stakeholders like suppliers:
1. Involving them in the core products strategies.
2. Restructuring its supply chains in order to ensure that all the
suppliers abide by its suppliers’ codes of conduct and provide it with
superior quality products in right amounts and at appropriate time.
3. Entering into procurement contracts with suppliers which expressly
mention the product to be supplied along with the specifications like
brands, the amount in which the products have to supplied, rates,
package sizes and required time within which the same have to
delivered.
options
The supermarket chain should take the following strategies to
manage defensive stakeholders like suppliers:
1. Involving them in the core products strategies.
2. Restructuring its supply chains in order to ensure that all the
suppliers abide by its suppliers’ codes of conduct and provide it with
superior quality products in right amounts and at appropriate time.
3. Entering into procurement contracts with suppliers which expressly
mention the product to be supplied along with the specifications like
brands, the amount in which the products have to supplied, rates,
package sizes and required time within which the same have to
delivered.
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