Stakeholder Strategy Development

This report discusses the importance of stakeholder strategy development for business growth. It covers topics such as generic strategy program, recommended strategy, implementation, and strategic leadership. The case study is based on BHP Billiton, a global company in Australia.

Stakeholder Strategy
Development

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Generic strategy program............................................................................................................1
Recommended strategy................................................................................................................4
Strategy implementation..............................................................................................................5
Strategic leadership......................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Stakeholder strategy development can be defined as the process of formulating effective
strategies for stakeholders according to their specification and choices so that their interest
within the business could be maintained. With the help of it, they can take part in the decision
making and their requirements could be focused by the management. In order to make sure that
all the stakeholders are satisfied with the performance of business it is very important for
companies to develop stakeholder strategy (Boiral and Heras-Saizarbitoria, 2017). Main aim of
this report is to understand the importance of stakeholder’s strategy development for the growth
of business. This assignment is based upon BHP Billiton which is one of the largest companies
of Australia and carrying out business at global level. This project covers various topics such as
generic strategy program, recommended strategy, implementation of the same etc. Along with
this, strategic leadership is also covered in this project.
MAIN BODY
Generic strategy program
Stakeholders are the individuals or parties which are interested in the performance of
business so that they can formulate specific decisions for future. In order to be their first choice it
is very important for all the companies to formulate such strategies that are highly focused with
them. With the help of it, their interest in business could be increased. BHP Billiton is a
successful entity and to make sure that its stakeholders are satisfied with its performance it is
required to form specific strategies for them. There are four major types of stakeholders which
are as follows:
Swing stakeholders: These stakeholders are the highly focused with competitive
advantage of the company and they have higher competitive potential. Co-founders, Chairman
etc. are some of the examples of them. It is very important to meet tehri expectations to carry out
operations smoothly (Bourne, 2016).
Defensive stakeholders: These stakeholders have higher level of competitive threat and
lower potential of cooperative. Shareholders are the example of these stakeholders and to meet
their expectations the entities are required to formulate effective strategies or growth of business
so that good dividend could eb provide to them.
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Offensive stakeholders: All the stakeholders who are having higher potential for
cooperation and lower competitive threat are such stakeholders. Employees are the offensive
stakeholders for companies as they are highly engaged in the performance of business they are
not focused with formulation of strategies for attainment of goals and competitive advantage.
Hold stakeholders: The external parties with low competitive threat and cooperative
potential are considered as the part of these types of stakeholders. All the consumers, buyers,
customers, clients are the hold stakeholders. For all the companies it is very important to meet
their expectations so that the targeted goals such as higher profits and revenues could be
accomplished successfully (Cadez, Czerny and Letmathe, 2019).
In order to meet the expectations of all the stakeholders such as co-founders,
shareholders, customers and employees which are categorised according to above bases the
organisation is using Generic strategy. For this purpose, a specific generic strategy program is
conducted by the organisation which helps to make sure that all the long as well as short-term
goals of the organisation are met by following the program. It is mainly focused with Michael
Porter’s four strategies which are developed to guide companies to select best suitable option to
attain growth for business. In order to meet the expectations of all the stakeholders it is very
important for BHP Billiton to make sure that it uses specific strategies. For this purpose, all the
strategies of Porter’s Generic model could be used (Dyer and Dyer, 2017). Discussion of all the
strategies which are focused for the program are as follows:
Cost leadership: In this strategy the managers try to attain competitive advantage in the
industry by reducing the cost and increasing the profit. In order to meet the expectations of
customers BHP Billiton can use this strategy and it will help to meet their expectations as they
can buy products on lower price when cost will be reduced by the management. On the other
hand, when this strategy will be implemented the company can make efforts to increase the
market share by reducing its prices and making reasonable profits. With the help of it,
requirements of co-founders of the entity could be meet as higher profits will improve the
performance of the company (Graham, Ross-Gillespie and Taylor, 2016). If this program of the
generic model will be selected by the organisation then it can help to improve performance and
attain competitive advantage. The main benefit of it will be received by customers and co-
founders of the company. The main reason for the same is that by selecting it the managers can
reduce cost and increase profits. When it will happen sales will be enhanced as clients will have
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to pay less amount for the items or services that will be bought by them and higher profits will
result in good competitiveness.
Differentiation: This strategy is mainly focused with improving the products and
services which are very different from the competitors and attract large number of customers.
For this purpose, various elements such as durability, support, brand image, functionality,
features of the goods or services are focused so that appropriate changes in them could be carried
out. By selecting this strategy BHP Billiton will be able to meet the expectations of shareholders
because when it will be implemented then market share will be increased which will result in
higher dividend for them (Guix, Font and Bonilla-Priego, 2019). While using it the management
is required to conduct proper market research and analyse the innovation which could be focused
to enhance the market share. The main key element which should also be taken in to
consideration is delivering best quality services and products to all the clients so that they could
be satisfied. With the help of it, sales could be enhanced that may contribute in the development
of entity. This program of the strategy will be beneficial to meet the requirements of
shareholders.
Cost focus: Under this strategy the company is highly focused with the decrement of cost
so that large number of customers could be attracted. This program of the generic model guides
all the entities to make sure that they become the lower cost producer in the industry so that they
can enhance the revenues by attracting customers. If this will be selected by BHP Billiton then
the organisation can meet the expectations of customers who are one of the main stakeholders for
the company. When it will be selected then the managers will be required to make sure that they
analyse the costs of all the competitors and then formulate strategies to reduce their costs. If it
will be reduced then the prices of the items and services that are offered by the organisation will
also be decreased which will help to increase sales and meet expectations of customers. If this
program of the Porter’s generic strategy will be used then it will be very easy for the company to
attain growth and development for business (Jordan, Chrislip and Workman, 2016).
Differentiation focus: It is last strategy of the Porter’s Generic Program. When it is
selected by the organisations then they introduce an innovative or unique item on low price in the
market so that new customers could be attracted. In order to attain success in the implementation
of this strategy it is very important for the managers to make sure that all the staff members are
engaged in their jobs. By selecting it BHP Billiton will be able to meet the expectation of
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employees who are internal stakeholders of the company. When this program of the model will
be selected for implementation then the main focus of the enterprise will be on employees. If
they will contribute in the attainment of success then they will be rewarded for their
performance. In order to motivate them the organisation will also increase their compensation.
All these elements of the model will help to are suitable for meeting the requirements of
employees (Kaur and Lodhia, 2018).
Recommended strategy
There are various types of strategy options in the Porter’s Generic Model. All f them are
focused with different elements and while planning to attain growth an organisation must select
best suitable one from all of them. By analysing all the strategies of Porter, it has been
determined that for an organisation it is very important to make sure that it is able to meet the
expectations of all the stakeholders. There are various stakeholders of BHO Billiton and it is very
important for the entity to select such option or the programs form all the four strategies which
can help to fulfil requirements of all the stakeholders. These are co-founders, shareholders,
employees and customers.
While conducting research about all the strategies it has been determined that
differentiation focus strategy will be the best option for BHP Billiton as by using it the
organisation can attract large number of customers, enhance engagement of employees and
enhance profits to meet expectations of co-founders and shareholders. By using it the
organisation can launch a new and innovative product or services in the market at a lower price
as compared to the competitors. It will help to attract large number of customers as they will get
a unique item on a very low price. Apart from this, when they will but more then the revenues
will be increased which will help to meet the expectation of Co-founders who want that the
company should generate higher revenues with good performance. This strategy will also help to
enhance the interest of shareholders in business as the higher sales will help to enhance profits
which can help to provide them higher dividend. Along with this, when the company will
introduce innovative products or services in the market then it will be very important to enhance
employee engagement for which their compensation will be increased. It will help to fulfil
requirements of staff members also (Macias and Farfan-Lievano, 2017). If this strategy will be
selected by the organisation then it can help to meet the organisational goals as well as meet
expectations of all the stakeholders. While implementing it the management will be required to
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make sure that they conduct market research and analyse the best suitable way to introduce
innovation in the market. Apart form this, they will also be required to identify the lower cost
suppliers who can help to product goods on lower price
Strategy implementation
Strategy implementation is the process of making efforts to implement a strategy which is
being identified for the betterment of business. As the recommended strategy for BHP Billiton is
Differentiation Focus therefore it is very important for the managers of the company to make
sure that they pay attention towards different elements for the implementation. All of them are
discussed below:
Objective formulation: It is the first element which should be taken in to consideration
while implementing the differentiation focus strategy. The main objective of the company for
adopting this strategy is to increase revenues, engaging employees and enhancing profits. With
the help of it, the strategy could be implemented properly as it will facilitate to formulate
effective decisions for future.
Market research: It is one of the main elements which is required to be focused by BHP
Billiton while implementing differentiation focus strategy. The managers will be required to
conduct market research in order to be aware of latest trends that are being introduced in the
market. With the help of it, decision regarding making the innovation could be formulated. When
market research will be conducted then the managers can analyse the main innovations or unique
features which could be used by it to attract large number of customers. If it will not be focused
then it will be very difficult to meet the goal such as higher profits, employee engagement,
increased revenues etc.
Required resources: It is very important or all the companies to make sure that they are
having sufficient resources that will be used by them. It can help to perform all the activities that
are required to accomplish all the tasks properly and meet the goals. While implementing the
strategy of differentiation focus BHP Billiton will be required to make sure that it is having
sufficient funds, human capital etc. If the managers will not be able to arrange them then it will
be very difficult to meet the goals (Pedrini and Ferri, 2019).
Strategic leadership
Strategic leadership can be defined as the process of guiding all the staff members so that
they can perform all their jobs properly. While developing and implementing strategies it is very
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important for all the entities to make sure that they are able to promote strategic leadership so
that all the planned activities could be performed properly. The significance of it could be
understood with the help of following discussion:
 Strategic leadership is very important for strategy development because it can help the
staff members to perform all their jobs properly that can help to develop a strategy
properly.
 While implementing a strategy it is very important for leaders to focus upon strategic
leadership as with the help of it, they can make sure that employees are performing all
their jobs properly (Waddock and Bodwell, 2017).
 Strategic leadership helps the staff members to perform all the assigned tasks
systematically because the supervisors guide them properly to do the same.
 With the help of strategic leadership all the difficult tasks could be performed easily
because leaders will help the workforce to deal with all the difficulties that are faced by
them to meet obligations of their job role.
CONCLUSION
From the above project report, it has been concluded that stakeholder strategy
development is the process which is focused by companies when they want that interest of
stakeholders in business should be increased. For this purpose, all the entities are required to
make sure that they select best strategy for the development of business which are focused with
expectation of stakeholders such as co-founders, shareholders, customers, employees etc.
Porter’s Generic strategy model could eb used to find the best suitable program for business that
can help to meet the requirements of all of them. There are focus elements of it which are cost
leadership, differentiation, cost focus and differentiation focus. While implementing them it is
very important for the managers to make sure that they are able to pay attention towards keep
elements. These are required resources, market research, objective formulation etc. Apart from
this, the management is also required to understand the importance of effective leadership so that
objectives that were formulated previously could be accomplished.
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REFERENCES
Books and journals:
Boiral, O. and Heras-Saizarbitoria, I., 2017. Managing biodiversity through stakeholder
involvement: why, who, and for what initiatives?. Journal of Business Ethics. 140(3).
pp.403-421.
Bourne, L., 2016. Stakeholder relationship management: a maturity model for organisational
implementation. CRC Press.
Cadez, S., Czerny, A. and Letmathe, P., 2019. Stakeholder pressures and corporate climate
change mitigation strategies. Business Strategy and the Environment. 28(1). pp.1-14.
Dyer, G. and Dyer, M., 2017. Strategic leadership for sustainability by higher education: the
American College & University Presidents' Climate Commitment. Journal of Cleaner
Production. 140. pp.111-116.
Graham, M., Ross-Gillespie, V. and Taylor, J., 2016. A Revised Adopt-a-river Programme:
Stakeholder Input on the Institutional and Financial Frameworks with a Focus on an
Implementation Strategy: Report to the Water Research Commission. Water Research
Commission.
Guix, M., Font, X. and Bonilla-Priego, M. J., 2019. Materiality: stakeholder accountability
choices in hotels’ sustainability reports. International Journal of Contemporary
Hospitality Management.
Jordan, M., Chrislip, D. and Workman, E., 2016. Collaborative Stakeholder Engagement. Special
Report. Education Commission of the States.
Kaur, A. and Lodhia, S., 2018. Stakeholder engagement in sustainability accounting and
reporting. Accounting, Auditing & Accountability Journal.
Macias, H. A. and Farfan-Lievano, A., 2017. Integrated reporting as a strategy for firm growth:
multiple case study in Colombia. Meditari Accountancy Research.
Pedrini, M. and Ferri, L. M., 2019. Stakeholder management: a systematic literature
review. Corporate Governance: The International Journal of Business in Society.
Waddock, S. and Bodwell, C., 2017. Total responsibility management: The manual. Routledge.
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