Case Study: Stakeholder Analysis and Strategies for Chorus Limited

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Case Study
AI Summary
This case study analysis examines Chorus Limited, a telecommunications infrastructure provider in New Zealand, focusing on its stakeholder relationships and the challenges it faces due to underestimating fiber network demand. The report identifies key stakeholders, including customers, technicians, executives, contractors, government bodies, shareholders, and the commerce commission, and assesses their influence using a power-interest matrix. It evaluates stakeholder engagement levels and proposes strategies for improvement, such as motivation, communication, conflict resolution, and negotiation. The analysis highlights the importance of addressing customer dissatisfaction, managing media relations, and fostering positive relationships with contractors and suppliers to sustain a competitive advantage. The case study also includes stakeholder engagement assessment matrix, and strategies like motivation, communication and conflict resolution for effective stakeholder management.
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Case study analysis 0
Case Study Analysis
Fault lines: what's wrong with
Chorus?
Student’s Name
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Case study analysis 1
Executive Summary
The report describes the case study analysis of Chorus Company which includes the
faults and the challenges faced by the company due to underestimation of the demand of fiber
network. It covers the analysis of the stakeholders and the strategies adopted by the company
to build the long term relationship with its stakeholders. The report comprises of the various
matrix to make the assessment of the stakeholder.
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Case study analysis 2
Contents
Introduction................................................................................................................................4
Analysis......................................................................................................................................5
Power Interest Matrix.............................................................................................................6
Stakeholder’s Analysis Matrix:..............................................................................................8
Stakeholder Engagement Assessment Matrix......................................................................10
Strategies for stakeholder management...................................................................................11
Motivation............................................................................................................................11
Communication....................................................................................................................12
Conflict Resolution..............................................................................................................12
Negotiations.........................................................................................................................12
Conclusion................................................................................................................................13
Recommendations....................................................................................................................14
References................................................................................................................................15
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Case study analysis 3
Introduction
Chorus Limited is a source of telecommunication infrastructure all through New
Zealand. It is registered on NZX stock exchange and is the proprietor of the bulk of telephone
lines and exchange apparatus in New Zealand. The Company sustains a network prepared up
of local telephone connections, cabinets, copper and fiber cables. The Company's
merchandise portfolio contains a series of broadband, data, and voice extensive services. It
runs an ultra-fast broadband connection and direct fiber access amenities to its customers
(Chorus NZ., 2019).
The aim of the report is to analyze the major stakeholders through power interest
matrix. It will also describe the engagement of the stakeholder and the adoption of the
strategies to manage the relationship with its stakeholders. The report will provide an analysis
of the strategies adopted by the company to build a relationship with its stakeholders and
sustain the competitive advantage of the company (Chorus NZ, 2019).
NZ Herald newspaper describes the case that the Chorus Company faced the faults in
its copper network due to the unexpected weather conditions in Auckland. The main analysis
from the case study is that the company underestimated the demand of the fiber network and
the lines were not properly installed. Herald called the customers to review their experience
and analyzed that the consumers were highly dissatisfied. The company faced the shortage of
technicians due to underestimation of the demand and however create dissatisfaction among
the customers and existing technicians (Taylor, 2016).
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Case study analysis 4
Analysis
The main stakeholders of the company include customers, technicians, chief
executive, contractor companies and sub-contractor, suppliers, federal and state government,
industry bodies, shareholders and commerce commission (Taylor, 2016).
The stakeholders play a vital role in sustaining the organization. It takes an important
decision regarding the business and helps in resolving environmental problems. The higher
executive levels have the power to take the decisions regarding the operation of the company
and have the responsibility of making the investments. It is analyzed from the case that the
company contacts with the outsourcing contractors to recruit the skilled technicians and asked
the government to fulfill the shortage of skilled technicians. Customers are the main source of
income for the company and focus on providing maximum satisfaction to them. All the
stakeholders hold different role and power in accordance with the positions specified to them
(Eskerod & Jepsen, 2013).
Stakeholders Who they are Internal or External
Employees Skilled workforce and
expertise technicians
Internal
Manager Chief executive
Craig Young
Internal
Outsourcing contractors Downer
Universal Communications
Group(Gallagher)
Broadspectrum
Vision stream
Telecommunications Users'
Association of NZ (Paul
Brislen)
External
Customers
Vijay Nanu, Westmere
Yvonne Marsh, Pukekohe
Ian Douglas, Riverhead
Izzy Easton, Morningside
External
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Case study analysis 5
Phil Deacon, rural Auckland
Clive Brumby, Whenuapai
Bronwyn, Mellons Bay
Government Federal and state External
Media Herald External
Supplier Vodafone External
Shareholders L1 Capital Pty Ltd.
The Vanguard Group, Inc.
Accident Compensation
Corp
External
Power Interest Matrix
High
Low
Low High
From the case analysis, the government was placed at the condition where power is
high and the interest is low because the company asked the government to provide a visa to
recruit the labour from India and Philippines and fulfill the shortage of technicians. The
government was placed in that category because it declared to provide ultra-fast broadband to
Power
Interest
Keep Satisfied
-Government
Manage Closely
-Outsourcing Contractors
-Customer
-Media
Monitor
-Employees
-Suppliers
Keep Informed
-Managers
-Shareholders
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Case study analysis 6
80% of the New Zealanders. To complete its vision the government has pay for the fiber
rollout (Jones, Harrison & Felps, 2018).
The customers, outsourcing contractors, and the media are placed under the category
that has high power as well as high interest in the operations of the company. It is scrutinized
that the customers were highly dissatisfied from the performance of the company has
demanded an ultra-fast broadband connection. The media highly influences the brand image
of the company and has the power to control the sales of the organization (Sharma, 2019).
Unhappy customers have developed the need to closely manage them by providing
the best services and repositioning the brand image of the company. Media plays a major role
in communicating the present position of the company. It becomes important to closely
manage media as the NZ Herald collected the review of the customers and described the
current state of Chorus (Guyen, Mohamed & Panuwatwanich, 2018).
Chorus was highly dependent upon the outsourcing contractors because the company
adopted the owner-operator model and hired the technicians at the cheaper cost. This created
haste and the expertise in the company gets dissatisfied. The employers and the suppliers are
categorizing with low power and low interest because the company was employing the staff
from the outsourcing contractors and reducing the power of the employees. The supplier was
having less control because of the policies laid down by the government and the decisions
taken by the higher level manager to shift towards the fiber network (Andriof & Waddock,
2017).
The managers and the superiors are categorized with low power and high interest
because they have to follow the decisions laid down by the higher authorities and the
government bodies. It is important to inform the essential information because shareholders
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Case study analysis 7
make the investments in accordance with the current situation while holding an important
position in the organization (Lehtinen, Aaltonen & Rajala, 2018).
Stakeholder’s Analysis Matrix:
Stakeholder
s
Interna
l
Externa
l
Powe
r
Interes
t
Satisfactio
n Level
Closely
Manage
d
Strategy for
engaging the
stakeholders
Employees Low Low Low Motivation
Manager Low High Medium Conflict
Solution
Outsourcin
g
contractors
High High High Negotiation
Customers High High Low Communicatio
n
Governmen
t
High Low Medium Communicatio
n and
negotiation
Media High High High Communicatio
n
Supplier Low Low Medium Negotiation
Shareholder
s
Low High Medium Communicatio
n and
negotiation
It was analyzed in the case that the employees were provided fixed free per job which
does not provide an incentive for the extra work done by the employees and thus created
dissatisfaction. The company must motivate the staff by providing incentives and giving the
opportunity to enhance their career development. The manager must be engaged by providing
the opportunity to resolve the conflict and arriving at the solution that provides peace in the
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Case study analysis 8
company. The company would have provided the opportunity to the managers to resolve the
conflicts between the employees and the management and must strive for a creative solution
to resolve the problem of the technicians and fulfilling the demands of the customer. To
engage the outsourcing contractors the company must have adopted the policy of negotiating
with the contractors and attracting them by providing the best prices (APM, 2019).
The customers play the main role in sustaining the business however the company
must communicate to the customers so as to satisfy their needs and must make them
understand the current situation of the company. From the case, it is analyzed that the
customers were not satisfied from the services provided by the company and Chorus was not
able to provide ultra-fast broadband connection to its customers due to lack of technicians
and underestimation of the demand of fiber network. Therefore the company must interact
with the customers to better understand them and fulfill the changing requirements of the
company (Cooper, 2017).
The company can control the actions of the government by effectively negotiating
with them and helping them in achieving the goals decided by the government. The company
must cooperate with the policies laid down by the government and can maximize the benefits.
The media plays a major role in developing the brand image of the company and realizing the
actual state of the company (Freeman, 2010).
Media helps the company in analyzing the actual reaction of the public however the
company must focus on effectively communicating with the media and ensuring transparency
in information. It is analyzed that Herald collected the reactions of the unhappy customers
and communicates the expectations of the customers from the company. It provides the actual
state of the company and develops its brand image in the minds of the customers (Eskerod,
Huemann & Savage, 2015).
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Case study analysis 9
Chorus can engage its shareholders and suppliers through effective communication
and negotiation strategies The Company must involve the shareholders and must provide
transparent information to its shareholders to retain their interest in the company. It must
effectively negotiate with the suppliers and the shareholders to maintain the profitability and
ensure an adequate supply of the raw material. It will help the company to develop a
favorable situation for all (Sanghera, 2019).
Stakeholder Engagement Assessment Matrix
Unaware Resistant Neutral Supportive Leading
Employees C D
Manager C D
Customers C D
Outsourcing
Contractors
C D
Government C D
Media C D
Supplier C D
Shareholders C D
C= Current
D= Desired
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Case study analysis 10
This matrix is used to analyze and portray the level and direction of stakeholder
management. It covers various stages which include unaware, resistance, neutral, supportive
and leading. It is analyzed that the employees are aware of the project but resist to change.
The company desires that the employees support the company (Wasieleski & Weber, 2017).
The manager of the company is supportive but the company desires that it leads the
company in a better way. The customers are highly resistant to the present situation and the
company desires that the customers must be supportive. The outsourcing contractors are
neutral and company desires that they must be supportive. The government and the media are
highly resistant and the company desires that they must be supportive of the company. The
suppliers and the shareholders are neutral and the company desires that they must be
supportive (Bourne, 2016)
Strategies for stakeholder management
The different strategies adopted by the company to improve stakeholder engagement include:
Motivation
The company has developed various health and safety programme to ensure the safety
of the employees and it recruits a diverse workforce to create a diverse business environment.
It provides the opportunity for the employees to advance their skills and has developed
training programs to upgrade the skills of its technicians. The company motivates the
shareholders and suppliers by providing transparent information and involves the
shareholders in all the management decisions (Anastasi, 2018).
The company provides flexible working structure to the employees and adopts diverse
leadership. It is analyzed that 78% of the employees believe that the company adopts the
practices that improve the lifestyle of the employees. The company has developed rainbow
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Case study analysis 11
tick accreditation to ensure that the workforce is dedicated to the rainbow community. It has
designed various long term and short term incentives to keep the employee motivated and has
also designed the chief executive remuneration programme to provide incentive and motive
the chief executive (Milosevic & Martinelli, 2016).
Communication
The company has adopted an open report culture to communicate with the suppliers
and has developed various communication programmes to effectively interact with its
shareholders. It has developed an investor relation programme to develop a two-way
communication and shares the transparent and information with its shareholders. It
effectively communicates with the customers to understand their needs and meet their
changing requirements. The company has developed a website to provide substantial
information and provide a regular update to the customers and shareholders of the company
(Caputo, Evangelista & Russo, 2016).
Conflict Resolution
Conflicts within the company hamper the productivity of the company and disturb the
operation. The company has developed a training programme to enhance the skills of the
manager and effectively resolve the conflicts among the members. It focuses on developing
the capability of the manager to resolve the conflict and provide the creative solution that is
favorable to all the members of the company. The manager effectively handles the queries
and provides a deep understanding to avoid confusions and conflicts at various levels
(Binder, 2016).
Negotiations
The company develops attractive offers to develop favorable negotiations with the
government, shareholder and suppliers. It ensures that there is proper availability of the raw
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Case study analysis 12
material at the affordable prices and negotiates with the government to attain the maximum
benefits from the policies drawn by the government. Negotiations help the company to satisfy
the main stakeholders of the company and attain higher profits for the company (Chorus,
2018).
The company must focus on stakeholder mapping to understand them and must
analyze the influence of its stakeholders on the others. It must identify the triggers and
measure mitigation to avoid the complaints of the stakeholders and achieve the objectives
efficiently (Chorus, 2018).
The table describes the impact on the organization due to the adoption of the various
strategies.
Stakeholder Motivation Communication Negotiation Conflict
Resolution
Employees Higher
productivity
No delay and
confusion
Higher
productivity
Peaceful
environment
Manager Effective
leading of team
Clarity of roles Favorable
decisions for
employees
Effective team
building
Customers Increase in sales Understanding
of needs
Profitability Maintenance of
brand image
Outsourcing
Contractors
Easy availability
of technicians
On time
availability of
technicians
Skilled labour at
cheap prices
Expertise
Technicians
Government Financial and
other support
Higher support
from the
government
Higher
opportunities
Financial and
other support
Media Positive
reputation of the
company
The actual
position of the
company
Protection of
image
A positive
image of the
company
Supplier Availability of
raw material
Open reporting
culture
Better prices for
raw material
Higher
productivity
Shareholders Huge
investments
Retention of
interest
Better
availability of
investments
Long-term
relation
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Conclusion
From the above analysis, it is concluded that adoption of the stakeholder management
strategies is directly linked to the reputation of the company. It is analyzed that the company
was able to deliver excellent services to its customers and fulfill the demand for ultra-fast
broadband services. Creation of an inclusive environment keeps the employee motivated and
improves the productivity of the company. Better negotiations provide skilled labor at
affordable prices and improve the performance of the company. It helps the company to build
a positive image and retain the best employees in the organization. The shareholders retain
the trust and make a huge investment in the industry. It helps in creating the harmonious
environment by resolving the conflicts and effectively negotiating with them.
Communication at all the levels provides the clarity of role and avoids the delays in decision
making. Development of positive brand image helps in receiving higher government support
and upgrades the operations of the company. It helps the company in developing long term
relationship with the shareholders.
Recommendations
The company must effectively determine the changing demands of the customer to
meet their needs and sustain the brand image of the company. It must adopt the flat
structure so as to avoid confusions and greater communication at all the levels.
The company must have provided efficient training to its technicians so as to meet the
emerging demand and provide better services to the customer. It must provide
substantial information to the media and the shareholders so as to develop their trust
and protection of the reputation of the company.
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Case study analysis 14
It must collaborate with the competitors to develop higher brand image and attain
more profitability. The company must develop innovative methods to attract a wide
range of customers and reorganize the shape of the company.
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Case study analysis 15
References
Anastasi, C. (2018). Strategic stakeholder engagement. New York: Routledge
Andriof, J., & Waddock, S. (2017). Unfolding stakeholder engagement. In Unfolding
stakeholder thinking, 19-42
APM. (2019). 10 key principles of stakeholder engagement. Retrieved from:
https://www.apm.org.uk/resources/find-a-resource/stakeholder-engagement/key-
principles/
Binder, J. (2016). Global project management: communication, collaboration, and
management across borders. Oxon: Routledge
Bourne, L. (2016). Stakeholder relationship management: a maturity model for
organizational implementation. London: Routledge
Caputo, F., Evangelista, F., & Russo, G. (2016). Information sharing and communication
strategies: a stakeholder engagement view. In 9th Annual Conference of the EuroMed
Academy of Business. Retrieved from:
file:///C:/Users/System04092/Downloads/EUROMED2016.pdf
Chorus NZ. (2019). Media releases. Retrieved from: https://company.chorus.co.nz/media-
releases
Chorus. (2018). Chorus annual report. Retrieved from:
file:///C:/Users/System04092/Downloads/Chorus%20Annual%20Report
%202018%20 (1).pdf
Cooper, S. (2017). Corporate social performance: A stakeholder approach. Oxon: Routledge
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Eskerod, P &. Jepsen, L.A. (2013). Project stakeholder management. London: Routledge
Eskerod, P., Huemann, M., & Savage, G. (2015). Project stakeholder management—Past and
present. Project Management Journal, 46(6), 6-14
Freeman, E.R. (2010). Strategic management: A strategic approach. United Kingdom:
Cambridge university press
Guyen, T. S., Mohamed, S. & Panuwatwanich, K. (2018). Project &
Production Management, 8 (2), 75-89
Jones, T. M., Harrison, J. S., & Felps, W. (2018). How applying instrumental stakeholder
theory can provide a sustainable competitive advantage. Academy of Management
Review, 43(3), 371-391
Lehtinen, J., Aaltonen, K., & Rajala, R. (2018). Stakeholder management in complex product
systems: Practices and rationales for engagement and disengagement. Industrial
Marketing Management
Milosevic, D. Z., & Martinelli, R. J. (2016). Project management toolbox: tools and
techniques for the practicing project manager. Canada: John Wiley & Sons
Sanghera, P. (2019). Planning for Communication and Stakeholder Management, In PMP®
in Depth, 313-341
Sharma, R. (2019). Power/Interest Grid (Matrix) for Stakeholder Prioritization. Retrieved
from: https://www.brighthubpm.com/resource-management/80523-what-is-the-
powerinterest-grid/
Taylor, P. (2016). Fault lines: what’s wrong with Chorus? Retrieved from:
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11701746
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Case study analysis 17
Wasieleski, M.D. & Weber, J. (2017). Stakeholder Management. United Kingdom: Emerald
publishing limited
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