Stakeholder Impact and Influence: A Coles Supermarket Case Study

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MGT501 BUSINESS ENVIRONMENT ASSESSMENT 2 -
INTERNAL AND EXTERNAL STAKEHOLDER ANALYSIS
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Executive Summary
The report has provided with an efficient and evidence-based understanding of the internal and
external stakeholder a business possesses in the dynamic business organization. The report has
considered an example of Coles Supermarket an Australian supermarket firm. The report has
identified Managers, Owners and Employees as the internal stakeholders for the business of
Coles. The report has identified Customers, Creditors, Shareholders, Government, Society and
Suppliers as the external stakeholders for the business. The report has also developed a
stakeholder matrix for the organization in order to develop an understanding of the influence
and level of the impact made by these stakeholders on the business decisions and business
policies. Lastly, the report has conducted a comparison of another example provided on the
discussion forum in order to compare the industry and the stakeholder identification for different
business organizations.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction and Background Information......................................................................................4
Identification of functional areas.................................................................................................4
Identification of Internal and External Stakeholders and their Roles..........................................5
Nature and Degree of main Stakeholders’ interests, and implications of conflicting interests...9
Implications of Conflicting Interests.........................................................................................13
Stakeholder Matrix and level of influence.................................................................................14
Comparison................................................................................................................................18
Conclusion.....................................................................................................................................20
References......................................................................................................................................21
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Introduction and Background Information
Coles is an Australian supermarket chain working in the supermarket industry. The company is
one of the market leaders in the industry and functions in different consumer goods. Coles
operates as a retail supermarket and consumer services. The business was established in 1914 by
George Coles and today Coles operates 807 stores throughout Australia. Coles acquires for more
than 80% of the Australian supermarket sector and consumer share together with Woolworths a
competitor of the company (Coles, 2019). Coles Online also operates through the company’s
online shopping portals Coles Online. The business of Coles enjoys a fair share in the market
and is strategically aligned with the industrial operations as well as consumer needs. Coles
observes its rivalry in the competitors such as ASDA, Woolworths, LIDI, and Amazon Fresh,
etc.
Identification of functional areas
The business of Coles operates in the supermarket industry and functions in the sale and
purchase consumer goods. The functional areas of Coles include sales, purchase, marketing,
consumer management, and stakeholder management. The business also operates an online
business and this includes for information and communication management for the online
services of the business. Coles is also highly indulged in the practice and function of corporate
social responsibility. The function of corporate social responsibility is undertaken by the
business to ensure effective internal and external business management and stakeholder
management. The function includes developing strategy and processing for business operations
in a dynamic manner to successfully undertake the business aims and objectives (Coles, 2019).
The business is required for effective strategies and approaches to support business development
and management. Coles operates in a competitive and dynamic industry where strategic business
and marketing functions are required. The business processes both traditional and digital forms
of marketing to support business aims and objectives. The functions areas of Coles are discussed
as below:
 Strategy and Business Management
 Marketing
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 Human Resources
 Finance
 Technology
 Operations
Identification of Internal and External Stakeholders and their Roles
Internal
Stakeholders
Role External
Stakeholder
Role
Managers These play a key role
in managing and
administrating the
business functions and
activities. These are
responsible for the
business strategy
development and
implementation of the
business approaches.
Customers The customers are key
stakeholders in the
business. These are
the individuals for
whom the business
produces the products
and services. These
play an eminent role
in the development
and advancement of
the business.
Owners These are the
individuals or groups
of individuals who
invest their capital
and funds in the
business activities to
ensure for goal
attainment (Grimmer,
2018). These play a
Creditors The creditors are
business individuals
providing with
required financial
resources to support
the business
operations and
functions (Kamal, et.
al., 2015). Creditors
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major role in
resourcing and
developing business
functions and
activities.
play the role as of a
fuel agent for the
business to ensure for
effective supply of
financial resources as
per the business aims
and activities.
Employees These are the human
resources working in
the organization.
These are integral for
the business as they
work in order to
accomplish the
business aims and
objectives. These
ensure for effective
services and
operations of the
business for goal
attainment business
practices (Klindzic, et.
al., 2016).
Shareholders These are the
individuals who invest
their capital in the
business in forms of
shares. They play the
role of selecting and
identifying business
directors and
managers. They also
play a role in
managing and
directing the flow of
the stock market and
the business position
in the stock market.
Government Government plays the
role of guidance body
for the business. As it
develops various
regulations and rules
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for the business to
direct ethical and
moral business
practices.
Society The society includes
for different members
and organizations that
consume the business
products and services
(Lagisetty, et. al.,
2017). These also
include individuals
who do not consume
business services but
are impacted by
business practices and
business functions.
Suppliers These are the
individuals or
organizations that
provide with the
products from the
manufacturers to the
business and from the
business to the end
consumers. These
individuals serve as a
link between the
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business and the
consumers. These
play the role of
mediators and the
communicators of the
consumer
requirements to the
business and the
developing managers.
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Nature and Degree of main Stakeholders’ interests, and implications of conflicting
interests
There are different interests of different stakeholders based on their share and perspective of the
business. It is necessary for the business as wide and complex as Coles to effectively identify the
nature and degree of interests of these stakeholders. It creates opportunities to develop for an
effective relationship between the business and their customers, suppliers, employees and other
essential shareholders. The nature and degree of main stakeholders for Coles are discussed as
below:
Stakeholder Nature Degree
Managers/ Owners The nature of interest for the
managers and owners of the
business of Coles is to earn
profit and sustain in the
competitive business
environment. The nature of
interest is economic and
demands profitability and
increased business returns
from the business.
The degree of interest of the
managers and the owners of
the business is identified to be
high and priority.
Customers The nature of interest for the
customers is physical health
and safety or security. The
customers require effective
and positive health impacts of
the products and services
(Andriof & Waddock, 2017).
The degree of interest for the
customers is high and on
priority.
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The consumers desire for
safety and security of
themselves and society.
Employees The employees have an
interest in the nature of work
integration and employment
security for the business of
Coles. The employees require
for involving them in the
decision-making process and
ensure for effective
employment policies such as
flexible working hours, fair
pay and equality in the work
processes and business
hierarchy.
The degree of interest for the
employees is medium.
Although it is necessary for
the business of Coles to ensure
for a greater level of employee
engagement and motivation
(Manetti & Bellucci, 2016).
Government The nature of the interest of
government is political and
social change. The
government and regulatory
organization such as the
Australian Competition and
Consumer Commission directs
the business practices and
functions of Coles and its
competitors (Ayuso, et. al.,
2014). The government has
also made policies to ensure
The degree of interest for the
government and the regulatory
bodies is high and can be
presumed as a priority for the
business of Coles.
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effective corporate social
responsibility for the
Australian supermarket
organizations to ensure social
developments.
Shareholders The interest of shareholders
can be identified as economic.
The shareholders of Coles
require the business to
function in an effective
manner. The shareholders
require Coles to develop
effective business trade to
ensure for higher returns on
investments made in the forms
of shares and bonds.
The degree of interest for the
shareholders can be
considered as primary and on
a priority.
Creditors The creditors of the Coles can
be identified with the interest
in the nature of economics.
The creditors require the
business to undertake effective
financial management and
administration of the financial
resources in order to support
for effective and timely
business returns for the
creditors (Ayuso, et. al.,
Creditors have a higher degree
of interest in the financial
management of the business.
The interest of creditors can
be considered as a medium.
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2014).
Society The society shares interest in
the business in the nature of
the environment, social
change, the physical and
mental health of the society
and the members. The society
requires Coles to operate and
execute business operations in
a manner that supports
executing diversified social
changes and provide for the
physical and mental
development of the society.
The society shares an interest
in the nature of social change
and development. It is
necessary for the business
managers and operators of
Coles to identify the interest
of society as a priority of the
business.
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