MGT501 Business Environment: Stakeholder Analysis of Intrepid Group

This report provides a comprehensive analysis of internal and external stakeholders within the business environment, using the Intrepid Group, a travel and tourism company, as a case study. The report explores the roles and influences of various stakeholders, including employees, supply chain managers, travel agent partners, customers, shareholders, and regulators. It delves into the functional areas of Intrepid Group, such as financial, environmental, social responsibility, and customer-centric operations, highlighting the importance of customer satisfaction as a key metric. The analysis compares the impact of customers and employees, examines stakeholder conflicts, and assesses the level of influence each stakeholder holds. The report emphasizes the customer as the main stakeholder and discusses the use of the Net Promoter Scale to measure customer satisfaction. It also provides insights into how customer actions affect other stakeholders and addresses potential conflicts that arise when prioritizing customer needs. The document concludes with a detailed comparison of stakeholder influences and their impact on the business.

RUNNING HEAD: Internal and External Stakeholder’s Analysis
Internal and External Stakeholder’s Analysis
Business Environment

Internal and External Stakeholder’s Analysis
Executive Summary
 This report is based on the analysis of the internal and external stakeholders in
business environment. Internal and external stakeholders are main influencer
influencing success or failure of any organisation.
 This report will discuss about the Intrepid Group that is a travel and tourism industry.
This is a famous industry that operates in small and adventures trips focusing the
customer as the main stakeholder.
 This report will discuss about the role of the customer as main stakeholder and the
effects of the customer actions on the other stakeholders.
 Intrepid Group use the Net Promoter Scale to measure and gauge the level of
customer satisfaction for further improvement in the planning and organising the
other relevant stakeholders.
 This report does comparison between the influences of the customer and the employs
in different industry.
 At last this report will give the detailed information and knowledge about the
performance and its effect on the industry of a customer behaving as stakeholder.
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Internal and External Stakeholder’s Analysis
Table of Contents
Introduction...........................................................................................................................................3
Important functional areas of Intrepid Group........................................................................................3
Area of operations of tourism functions............................................................................................3
Internal and external stakeholders and their roles..................................................................................5
Internal stakeholders and their roles..................................................................................................6
Employees.....................................................................................................................................6
Supply chain managers..................................................................................................................7
Travel agent partners.....................................................................................................................7
External stakeholders and their roles.................................................................................................7
Customers......................................................................................................................................7
Shareholders (Investors)................................................................................................................8
Regulators and government bodies................................................................................................8
Nature and degree of main stakeholder’s interest and impact of conflicting interests...........................8
Main stakeholder...............................................................................................................................9
Level of main stakeholder’s influence.................................................................................................10
Matrix of customer stakeholders..........................................................................................................10
Comparison between the stakeholder and their influence....................................................................12
References...........................................................................................................................................13
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Internal and External Stakeholder’s Analysis
Introduction
An individual or group of individuals forming an organisation that have any kind of stake and
interest in a business and get affected by the activities of the business organization are known
as stakeholders. They are a group of individuals gets affected by or affect the actions of an
organisation and they are directly or indirectly involved in it. The concept of stakeholders
was introduced in the year 1963 at the Stanford research institute. It became famous in the
20th century in form of the individual that have legitimate stake in any project or program
introduced in the business process (Andriof, 2017).
An Intrepid Group is a tourism company dealing in the development of the relevant society as
well. Stakeholders of Intrepid Group divided in internal and external stakeholders. They are
relevant to the Intrepid Group. The given figure is detailed division if the stakeholders in an
industry or business. Normally stakeholders are employees, managers and owners in internal
stakeholders and suppliers, society, relevant government and shareholders with the major role
of customers (Freeman, 2010).
Important functional areas of Intrepid Group
A tourism and travel industry is the busiest industry and the Intrepid Group is one of the
world’s largest tourism industries well-known for the small tour arrangements focusing the
corporate social responsibility very seriously. It operates the functions including information
of the tour, journey planning, ticketing and reservation, tour pack and quotation, travel
insurance, money exchange service and arrangements of conventions (Moutinho, 2018).
Area of operations of tourism functions
It is necessary for every travel and tourism industry to provide detailed information regarding
the tourism sector and the packages it is dealing with effectively. Intrepid Group as part of
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Internal and External Stakeholder’s Analysis
tourism industries in Australia deals in variety of functions in traveling. It is divided in three
different groups performing in different functions. Like
 Small group adventures
 Day tours
 Destination management companies
Intrepid Group deals in small group adventures program by giving this responsibility to
Intrepid travel and Urban adventures organisation (Boluk, Christina, & Hggins-Freya, 2017).
These two groups are busy in planning, organising, guiding, informing and setting all the
relevant functions to a tour to its tourists. PEAK DMC, Peregrine adventures and the intrepid
foundation are other parts of the Intrepid Group dealing in the management of day to day
operations of the functions in the tourism industry of Intrepid Group (Coccossis, 2016). The
main focus of the Intrepid Group starts with the
 Financial functions: Financial functions of Intrepid Group are focused on the long-
term development of the business and making the development profitable to the
internal stakeholders of the organisation.
 Environmental functions: Environmental functions are relevant to the functions
operating its tour and travel planning with the focus on the preservation of the natural
resources for the next generations with the interest of the stakeholders.
 Social responsibility and development: this function is very important for the Intrepid
Group because it is relevant with the corporate social responsibility of the
organisation towards the society and the community where it operates its functions of
earning the profits.
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Internal and External Stakeholder’s Analysis
 People and communities: Intrepid Group organise its tour focusing the development
of the stakeholder relevant to the people, culture and community and train its
employees in order to meet the stakeholder’s requirements.
 Customer: customers are direct stakeholders get affected by the policies of the
business and the organisational activities. This is the main function of an organisation
to deal in delivering the happiness to its customer by its product quality and services
 Branding and promotion: Intrepid Group assumes the customer’s happiness by their
services as their branding and promotion. This function involves the proper product or
service delivery to the proper customer with in the assign time (Scott, Hall, &
Gössling, 2019).
Internal and external stakeholders and their roles
In a business operating organisation a stakeholder can be anyone that have interest in the
activities of the organisation and the result of those actions in the organisation. Commonly
stakeholders are divided into two famous groups one is internal stakeholder and another is
external stakeholders. Intrepid Group is very focused in the actions performing the
development of the sustainable production and developing the interest and benefits (Jones,
2017).
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Internal and External Stakeholder’s Analysis
Figure1 Source: http://oer2go.org/mods/en-boundless/figures.boundless-cdn.com/13782/large/
stakeholder-en-.jpg
Internal stakeholders and their roles
List of those group that are involved in the operations of business and perform the activities
in the business with interest are known as internal stakeholders, they are direct person that get
affected and affect the business activities in an organisation (Punjaisri, 2017). Intrepid group
have involved its employees, the managers that supply the needed stuff to the managers and
its travel agent partners in the list of the internal stakeholders these stakeholders play very
significant roles in the development of the tourism business (Mok, 2015).
Employees
Interest or stake area of employees in an organisation or business is relevant with their
employment service, income and their security and safety. Employees are direct stake of the
business where they earn their source of livelihood in exchange of their services. They are
needed for the financial benefits with all other types of benefits like health and safety benefits
with their interest and stake (Srinivasan, 2019).
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Internal and External Stakeholder’s Analysis
Supply chain managers
Suppliers or managers have interest and stake relevant to sale of their material to the business
in exchange of the product or services they sell to the business enterprises. They seek for fast
and secure transactions with the business entity they are dealing. Suppliers supply the quality
service for the business and earn their worth and safety in their stake (Meixell, 2015).
Travel agent partners
Travel agent in a tourism industry are direct stakeholders, usually working to operate the
operations of the planned tourism activities, providing services and securities, traveling
facilities to the passengers in exchange of their development, promotion and increase in the
business area. They seek development in return from the business they are giving facilities to
the passengers.
External stakeholders and their roles
Those individuals or group prevailing outside of the business organisation but affect the
business outcomes and get affected by the activities if the business organisation. This is a
well-known term that external factors of a business entity are most influencing stakeholders
in the operations of a business (Cardwell, 2017).
Customers
Most significant and influencing stakeholder of an organisation is its customers for that it
operate its services and productions. Customers have their stake in the production, service
provided to the customer and the value to the produced and planned product. In tourism
industry passengers are main source to the tourism industry because a satisfied and happy
customer or passenger is equal to the brand and goodwill of the business (Kilroy, 2017).
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Internal and External Stakeholder’s Analysis
Shareholders (Investors)
A shareholder is direct stakeholder in an organisation or business; shareholders are the owner
of a part of the organisation by owning the shares of that particular organisation or business.
A shareholder is an individual or group of person and any company that owns share of that
company with the stake of earning profits and increase in their share value. The rise in the
production and service of the organisation result in the increase of the share values of the
shareholders and their income.
Investors sometimes known as shareholders, that are interest in investing their capital and
money in the business operations with the stake of increased rate of the return. Their main
interest is to earn maximum return from their investment (Meixell, 2015).
Regulators and government bodies
Government and the regulating bodies is also a significant stakeholder in an organisation with
the interest of earning taxes and development in the Gross Domestic Product of that country
where it operates its business. Tourism industry like Intrepid Group is dealing its operations
in form of adventure trips hence it is responsible to promote the activities related to the
development of the revenue and income of that country and giving stability to the economy
of that country (Dahan, 2015).
Nature and degree of main stakeholder’s interest and impact of conflicting interests
Stakeholders are factors influencing the business operations of a business entity by their
actions and their stakes in the business. Main stakeholders are decided by the nature of the
business and by the priorities of the business operations.
For example if the business is in its initial stage then the prior and main stakeholder will be
the employees and the team members because they provide services at initial stage to run a
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Internal and External Stakeholder’s Analysis
business organisation. If a business enters into its growth stage then the maintenance of the
customers’ stake is the priority for the business organisation and when an organisation enter
in the stage of the discussing its earning and the results then it prioritize the shareholders and
investors as main stakeholders (Kabra, 2015).
Main stakeholder
In Intrepid group customers are assumed as main stakeholders in a tourism industry and
Intrepid Group also focus the customers as the main stakeholder for its organisation actions
and activities. Included in business priorities they used customer feedback as the source to
implement the required change in the business operations. Customers are the purpose of the
company their main interest is in the product service and quality of the product and their
values of the company (Hüttel, 2019).
Company targeting customer as its main stakeholders, face many issues and conflicts in the
arrangement of the conflicts among the customers’ demand and the fulfilment of the
customers’ interest with the management of the interest of the different stakeholders.
Main conflicts arise in the business targeting the customers as its main stakeholder are as
follows;
 In relation to the employees hiring cheaper quality staff to maximize the profit leads
to the poorer customer satisfaction.
 Arrangements of the customer’s services in order to gain corporation tax and increase
in the profit.
 Customer always demands the best in the lower price maintaining the extra expenses
with the other stakeholder’s interest is the big deal for the customer oriented
organisation.
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Internal and External Stakeholder’s Analysis
Level of main stakeholder’s influence
A business mainly revolves around the customer satisfaction and happiness and the customer
is one that directly influences the other stakeholders by its actions. If a customer is unsatisfied
with the services and the product it affects the other factors indirectly. Level of the
customer’s satisfaction and happiness as a stakeholder is very high the customer can
influence business entirely. In case of a tourism industry passengers are the main stakeholders
and they seek proper safety and a trip worth to their investee money in case of any incident
leading the unhappiness to the customer is harmful for other relevant stakeholders
Highest risk: If a business operator fails to satisfy its customer it cannot make any profit and
sometimes fails completely in the market.
Risk at initial stage: The psychological consideration and mind set of customer/passenger is
very impotent in selling the product or service to the customer. A happy mind set of
passenger helps the manager to make flow of the communication without hazards a confused
passenger influence the sell and profit of the organisation deeply.
High level risk: Mouth publicity is the main and no cost method to promote the brand of the
organisation. A satisfied and happy customer/passenger will speak in the community with the
positive attitude in the market and will do mouth marketing without taking anything in return
and vice-versa. This is totally depending on the service quality provided to the passenger (So,
2016).
Matrix of customer stakeholders
Customer satisfaction is main target of the business entities. Customers are the group highly
influence the other stakeholder and the entire business operations. A customer can directly
give its feedback to the higher level of the managing company and can affect he business
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Internal and External Stakeholder’s Analysis
positively and also in negative manner. Intrepid Group gives value to the customer’s
feedback very seriously and use a Net Promoter Scale to get the details about the customer
happiness and satisfaction from their organised trips (Hill, 2017).
Source: https://www.reviewpro.com/wp-content/uploads/2017/09/2017-09-06-Glossary-Blogpost-Images-NPS-
600x280.jpg
Net Promoter scale is a tool used to identify and measure the relationship of the customer
with the organisation. This is the commonly used traditional technique to measure the level of
customer’s satisfaction and happiness.
How it mechanism: It usually calculates the performance measurement by asking the question
“How preferably would you like to recommend our services to your familiars?” giving ratio
of numbers from 0-10.
 0-6 is recorded as Detractors means less likely and unhappy.
 7 and 8 recorded as the Passive that are likely to confused and unclear.
 9-10 is very important and is very likely implicating the happiness and satisfied
customer.
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Internal and External Stakeholder’s Analysis
Comparison between the stakeholder and their influence
Developing and maintaining a business is very difficult and challenging for the business
operator focusing to satisfy the needs and interest of all stakeholders. Employee’s
management as stakeholder is very critical with the delivery of customer satisfaction. An
employee is worth to an organisation and making him feel secure and safe is the duty of the
industry. An employee gets affected by the customers’ action and also influences the
customer by its actions and services (Groening, 2016).
 Compensation issues influence the economic level of the industry and the employees
as well. The economic growth of the industry id influenced by the employee
stakeholder.
 Job security and safety is the main interest of an employee stakeholder. Decisions
taken by the management are important by the job safety purpose of the employee
interest.
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Internal and External Stakeholder’s Analysis
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