Stakeholder Analysis of Bunnings Warehouse: A Business Report

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MGT501 Business Environment Assessment 2
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Executive summary
 This report is prepared in order to create an efficient understanding regarding the internal
as well as the external shareholders of the business in the dynamic business
organizations.
 There is taken the organization Bunnings Warehouse operating in the Australian market.
 There will be identified the internal stakeholders of the organization in the form of the
employees, owners as well as the managers of the company and on the other side, the
external stakeholders have included the shareholders, customers, creditors, suppliers,
government as well as the society.
 There will be provided a stakeholder’s matrix in order to understand the level of the
influence of such stakeholders on the business practices as well as the business decisions.
 There is also being provided a comparison with the other industry organization and
different stakeholders of both the industries has also been compared.
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Table of Contents
Executive summary.........................................................................................................................2
Introduction and Background Information......................................................................................4
Functional Areas of the Business....................................................................................................5
Identification of internal and external stakeholders and their roles.................................................6
Nature and degree of main stakeholder’s interest............................................................................8
Implications of conflicting interests..............................................................................................11
Stakeholder’s matrix and the level of influence............................................................................12
Comparison...............................................................................................................................of 15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction and Background Information
Bunnings Group which is operating as the Bunnings Warehouse is household hardware chain
operating in Australia. This organization is the subsidiary of the company Wesfarmers since the
year 1994, and it also has the stores in New Zealand and Australia. The company was found in
Perth, Western Australia by two brothers emigrated from England. In the initial years, such
limited company concentrated on sawmilling and it became the public organization in the year
1952. This company has expanded its business into the retail sector and it has purchased several
numbers of the hardware stores. It also started to expand its business into several other stores and
opened the first warehouse kind of store in Melbourne in the year 1994. There are approximately
295 stores owned by7 this chain and it has more than 30,000 employees working under this
company. Such organization is capturing a market share of around 20% in the retail hardware
sector of Australia with the other competing chains such as Home Timber & Hardware, Mitre 10
as well as other different retailers in the Australian market. There are several House brands of
Bunnings such as Saxon, Click as well as Eiger Electrical.
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Functional Areas of the Business
The Bunnings Warehouse is operating in the retail market of Australia and it has also captured
approximately 20% of such hardware market. There are several numbers of the functional areas
of the company such as the sales, marketing, stakeholders’ management, production, the
customers handling and care as well as the purchase. The company is also indulged into the
corporate social responsibility functions in order to endure the internal as well as the external
business management and the management of the stakeholders. In order to achieve the business
objectives and aims, there are several functions that have been made by the business such as
making the strategies and implementing them. Following are the core functional areas of the
business of Bunnings Warehouse:
Sales department: This department of the business handles all the sales related activities of the
business and helps in increasing the sales as well as the profitability of the business. This is
considered as the direct link between the products as well as services and the customers of an
organization (Klindzic, et. al., 2016).
Marketing Functions: These are one of the most important functional areas of the business as
though the marketing, the managers of the business increase brand awareness among the
customers regarding the product.
Human resource management: This is the functional area of the business where all the
employees are recruited as well as managed. Here the main focus remains on the development of
an individual as the professional.
Finance activities: Finance is such a department of the business which plays a very important
role for the business. It collects the funds for the daily routine activities of the business and also
handles the remuneration and salaries related work of the employees (Grimmer, 2018).
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Identification of internal and external stakeholders and their roles
There are several numbers of people who have a direct or indirect interest within any business.
There are several numbers of the internal as well as the external stakeholders of the business
Bunnings Warehouse. Following is provided the list of the internal and the external stakeholders
and their roles within the businesses:
List of Internal stakeholders
Managers: These are key people of the organization as they manage all the work as well as the
people within the organization. The managers of the organization Bunnings Warehouse are the
important people and key internal stakeholders of the organization. They get their remuneration
from the business and they have their interest associated with the business.
Employees: Employees are the human resources within an organization which is considered as
an integral part of any business. They take the responsibility of the tasks to be accomplished
within the organizations like Bunnings Warehouse (García-Sánchez, et. al., 2018).
Shareholders: These are considered as the owners of the organization. They have the main
interest within the Bunning Warehouse as the benefits will be distributed as the dividend among
those shareholders. They have made the investment in the capital of the business hence they have
a great degree of interest in such business.
List of External Stakeholders
Customers: Customers are the key people of any business. They have a great degree of the stake
in the business hence they have a great influence over the activities of the business. They are the
people who provide the business to the company and pay money for the products as well as the
services purchased. Ultimately they are the reason behind the profitability of the organization.
Suppliers: These are the organizations or the individuals supplying the raw material and all the
required material to the Bunnings Warehouse in order to facilitate the manufacturing of hardware
within the organization.
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Society: The society involves different numbers of individuals as well as the organizations
which consume the products and services of business and where the business is operating their
operations. There are also include the people who are not consuming the products as well as the
services offered by the company but getting impacted by the business through corporate social
responsibility practices.
Government: It plays a very important role in as governance body for the businesses. There are
several numbers of rules and regulations developed by the government which can have a direct
impact on the business. On the other hand, the company also pays the taxes to the government
which is a source of income for government hence it is also impacted by the business activities
of Bunning Warehouse.
Creditors: The creditors provide financial support to the businesses in order to facilitate the
smooth operation and functions of the business. They are considered as the fuel agents for the
businesses in order to provide effective financial resources for the business.
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Nature and degree of main stakeholder’s interest
As there have been identified several numbers of internal as well as the external stakeholders for
the business. They have their different interests as per their perspectives and their share in the
businesses. It is required for the business of Bunnings Warehouse to analyze the nature and the
degree of the stakeholders associated with the business. Following is provided the list of degree
and nature of the stakeholders within the business of Bunnings Warehouse:
Stakeholder Nature Degree
Managers The nature of the interest of the
managers within the
organization is to earn the
monetary benefits in terms of
remuneration and keep the
business competitive in this
dynamic business environment.
The nature of the interest of the
managers is financial which
demands the profitability and
monetary benefits from the
increased returns of the business
(Vuorinen & Martinsuo, 2018).
The degree of the interest of
the managers is high within
the organization. They are the
priority for the business.
Society The interest of the society is
indulged into the business is in
the form of social change,
environmental sustainability as
well as the physical and mental
health and well being of the
The degree of the interest of
society in the business of
Bunnings Warehouse is
moderate. the priority level is
also moderate for the business
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people. The society is looking
forward to the Bunnings
Warehouse to operate their
business activities in such a
manner that there is no loss to
society (Kamal, et. al., 2015).
of Bunnings Warehouse.
Employees These are the people that are
responsible for the tasks to be
completed within the
organization in a timely
manner. They have an interest
in the organization in the
nature of work integration as
well as the employment
security within the Bunning
Warehouse. They are required
to be involved in the decision-
making process of the
business and they must also be
provided the adequate security
at their workplace (Brem &
Viardot, 2015).
The degree of the interest of
the employees within the
organization is high as they
can be either benefitted or
frustrated while working with
such an organization.
Creditors The creditors have an interest
in the form of the economic
and financial landscape. They
have the requirement of the
timely requirement of their
funds along with the interest
The priority level as well as
the degree of interest is
considered moderate. They
have an interest in the
financial management of the
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rate on the returns. organization.
Shareholders The interest of the
shareholders is also economic
in nature. The shareholders of
Bunnings Warehouse expect
from the business to use
effective business practices in
order to earn maximum
benefits and provide benefits
to such shareholders in the
form of a dividend.
The degree of the interest of
the shareholders can be
considered as high and the
priority level is also high.
Government The nature identified for the
government in the business is
economic, social change as
well as political as it earns the
taxes from businesses.
Degree of interest and priority
is low.
Customers The nature of the interest is
the physical health as well as
safety. The customers want to
buy such products which are
not hurting them and are not
harmful to them.
The level of interest and
priority is high.
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Implications of conflicting interests
It is very important for the businesses to manage such diversified interests of the stakeholders of
business in order to be stable and competitive in this dynamic business environment. There are
several stakeholders associated with the company Bunnings Warehouse where there has been
identified several numbers of the conflicts in their business interests. It can be considered as
inevitable for contemporary businesses to witness such conflicting interest among the
stakeholders of the business. Following are some implications of the conflicting interest of
stakeholders of Bunnings Warehouse discussed:
 There can be a conflict between the interest of managers as well as the employees. There
can be resulted in the high degree of the resistance of the employees towards such kind of
conflicting interest. These kinds of conflicts can be observed in the daily routine life
(Laczniak & Murphy, 2012).
 There can be conflicts interest among the business owners as well as the government. The
conflict can arise regarding the tax payments paid by the business owners to the
government.
 There is also been identified the conflicts between the business owners as well as society.
Such kind of conflicting interests may result in the diminishing reputation of the brand. It
can also have an impact on the corporate social responsibilities of the business.
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Stakeholder’s matrix and the level of influence
Stakeholder Level of
impact
priority Nature of
interest
Contribution
to the
company
Business
strategy
Shareholders High High In order to
increase the
profitability
as well as
productivity,
maintain the
effective
standards to
be followed
by the
businesses.
The
shareholders
are the owner
of the
company and
they make the
investment in
order to
provide the
capital base to
the
organization.
Conducting the
meetings as well
as the schedules
programs in
order to inform
as well as
discuss the
conflicts and
problems in the
organization.
Manager High High Ensuring and
managing the
performance
of the
business as
well as the
employees
through
enduring the
overall
growth and
They manage
the workplace
and the
employees
which is a very
big
contribution to
the
improvement
of business
The managers
within the
organization can
be kept engaged
in the business
by providing
them better
future
opportunities as
well as better
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