Morrisons: Analysing Stakeholder Relationships and Business Practices

This report analyzes the relationship and influence of internal and external stakeholders on the business practices of Morrisons, a major UK supermarket chain. The report begins with an introduction to stakeholders and their importance, followed by an analysis of how Morrisons categorizes its stakeholders based on power and interest, using the Power-Interest Matrix. It examines the influence of high-power, high-interest stakeholders (partners, clients), high-power, low-interest stakeholders (local communities, trade unions), low-power, high-interest stakeholders (media, employees), and low-power, low-interest stakeholders (government bodies, NGOs). The report then details the relationships and influences of both internal stakeholders (employees, investors) and external stakeholders (suppliers, government regulators) on Morrisons' operations. The analysis includes how Morrisons engages with these stakeholders and the benefits of such engagement, supported by academic theories and examples. The report concludes by summarizing the impact of stakeholders on the business, highlighting their ability to both enhance and hinder business operations, emphasizing the significance of effective stakeholder management for organizational success.

Analyse the
relationship and
influence internal and
external stakeholder
have on business
practice

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyse the relationship and influence internal and external stakeholder have on business
practices.......................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Stakeholder are the one who associated the group having interest towards the company. It
covered all the theories and the method that any business is using in their operational areas. The
company must use the various external and internal sources that includes the supplier,
shareholders, creditors, board of directors, investors etc.(Waheed and Yang, 2019). These factors
have the great impact on functionality of the organisation and leading the company towards
growth. Morrisons is the chosen organisation for this report, which is the largest chain of
supermarket in the United Kingdom. This is founded in 1899 by William Morrisons. This report
will cover the analysis of relationship and influence of internal and external stakeholder on the
business.
MAIN BODY
Analyse the relationship and influence internal and external stakeholder have on business
practices.
Stakeholder are the individual, groups that are showing their interest in the particular
project and also concern with the outcomes. They help in handling the management issues in an
appropriate manner. As all the stakeholder are not same, they conduct the stakeholder analysis so
that they can easily categorizes the stakeholder on the basis of their difference and for this,
Power-Interest Matrix is use for classification of the stakeholders. This matrix help in knowing
the influence of stakeholder on axis and how the organisation have impacts by the shareholders.

Morrisons categorized Stakeholders in term of their influence, level of participation and interest,
which is explained as follows:
 High Power, High Interest: This attributes cover the stakeholders who have the most
influence and play a vital role for the success of the company(Sroufe, 2017). It includes
the partner and the clients that have great impact on growth of the company. They are
highly interested and maximum interest within the organisation. It is the main concern of
the company to have the potential candidate who can give their best in attaining the
business goal.
 High Power, Low Interest: They are the one who is having high power and low interest
nut it is necessary to keep them influenced in order retain or make their interest in the
business that will help in getting the things done in an right approach. Morrisons also
focuses on this local communities, trade unions so that they can retain in the business for
a longer period of time and also help in geeing the things done in an effective manner. It
is the main concern of an organisation to keep them satisfied as they are having high
power and low interest in their operational areas.
 Low Power, High Interest: These are the individual to whom correct information have
to be given in order to eliminates the various issues in the work place(Järlström, Saru,
and Vanhala, 2018). It includes media person and the employees, who is having great
interest in the business but having less power or authority to take decision. Morrisons
must carries their opinion, values and interest so that productivity of the employees can
be increases and they will work in more effective manner. As they caries the high interest
in the business, this will help in getting the work done in an effective manner and also
help in meeting the highest level of profitability and growth by having the interested
stakeholders.
 Low Power, Low Interest: These are the person who need regular update but do not give
them the excess information. It includes the government bodies, Public Administrations,
Non-Governmental Organisation(Fan and Zhao, 2017). These stakeholders have the
great impact on the business so it is necessary to generate their interest in business so that
they can work in an effective manner. Morrisons also have to mage their stakeholder so
that each operation of the business can be done in an right approach which will leads to
increase the profitability of the organisation.

Relationship and influence of internal and external stakeholders:
Stake holder are the one who impac6t the business and mainly complies with the people.
There are two type of stakeholder internal and external which help in growth of the company by
providing the various resources that is explained as follows:
Internal stakeholders: These are the people who are interested in the business at their
own risk and share(Andersson and Wikström, 2017). They directly cover the business and
majorly impact the business and also take part in decision-making on major aspects by which
company can increase their productions and profitability. Morrison mainly analysed the
following stakeholder:
 Employees:These are the people who is highly interested in the business and also have
the major impact on the functioning of the business. Company give the taking session so
that they improve their skills and efficiency in order to work effectively.

 Investors:They are the important stakeholders of the business who invest in the business
for the further growth and smooth running of the business. Morrisons is the leading brand
and having many investors who invest in the busienss.
External stakeholders: These are the important aspect for any business as they are
concern with getting the information about the firm so company have to build their brand image
in such a way that they can not harm the business(Agi and Nishant, 2017).
 Suppliers: They are the one who contribute in the business by availing the sufficient
amount of material to retain the demand of their products in the market. Morrisons
contact with the various suppliers to ensure the proper supply in each operations.
 Government Regulator: These are the one who is having no interest in the business so it
is important to give them a sufficient information so they can not interface in the
operations. Morrisons also focuses on making the things done by not passing the entire
information to them.
CONCLUSION
It is concluded from the above report that Stakeholder are the one who can uplift the
business and can also slowdown the business operation as they are having the highly intense
power and interest. There are internal and external stakeholders who impact the business and
also contribute in the growth of the business. Employees re the one who give their best in
achieving the business goal and political bodies are one who have no interest but high power in
the business and they can impact the business.

REFERENCES
Books and Journals
Agi, M.A. and Nishant, R., 2017. Understanding influential factors on implementing green
supply chain management practices: An interpretive structural modelling
analysis. Journal of environmental management.188.pp.351-363.
Andersson, S. and Wikström, N., 2017. Why and how are social media used in a B2B context,
and which stakeholders are involved?. Journal of Business & Industrial Marketing.
Fan, B. and Zhao, Y., 2017. The moderating effect of external pressure on the relationship
between internal organizational factors and the quality of open government
data. Government Information Quarterly. 34(3).pp.396-405.
Järlström, M., Saru, E. and Vanhala, S., 2018. Sustainable human resource management with
salience of stakeholders: A top management perspective. Journal of Business
Ethics. 152(3). pp.703-724.
Sroufe, R., 2017. Integration and organizational change towards sustainability. Journal of
Cleaner Production. 162. pp.315-329.
Waheed, A. and Yang, J., 2019. Effect of corporate social responsibility disclosure on firms'
sales performance: A perspective of stakeholder engagement and theory. Corporate
Social Responsibility and Environmental Management.26(3). pp.559-566.