Stakeholder Relationship Management for Luxury Brands: Gucci

This report analyzes stakeholder relationship management within the luxury brand sector, using Gucci as a specific case study. It begins by defining stakeholders (primary and secondary) and their significance, particularly within the context of luxury brands. The report then explores the challenges luxury brands face in managing stakeholder relationships, such as safeguarding positions and communication issues. The aim of the report is to analyze the relevance of stakeholder relationship management for luxury brands, using a case study on Gucci. The report's objectives include examining relationship management concepts, identifying challenges faced by managers in building and maintaining stakeholder relationships at Gucci, and recommending strategies for developing healthy relationships with stakeholders. The report references various academic sources to support its findings and recommendations, providing a comprehensive overview of the subject matter.

MANAGING THE
RELATIONSHIP WITH
STAKEHOLDERS

Table of Contents
1.1 Introduction:.............................................................................................................................................3
1.2 significance of problems in managing relationship with stakeholders..........................................5
1.3 aim and objective...........................................................................................................................5

1.1 Introduction:
Stakeholders are the party who have invested in the company and these parties can affect the
company or get affected by a company. The stakeholders of a company are mainly of two
types, they are primary and secondary stakeholders (Astudi and Utami 2018). The primary
stakeholders of the company are present within the company they are the internal
stakeholders including managers, employees, shareholders etc. The secondary stakeholders
are the external parties interested in the activities of company and include investors,
regulators, consumers, suppliers, etc. The stakeholders of the company is an extremely
important party affecting the success of the business as they help in building relationships
with the external parties and also help in building a strong internal environment.
The luxury field has a number of features that have allowed to experience a spectacular
evolution over time, to acquire remarkable stability and power of recovery after adverse
economic events, including world-wide. It can be said that luxury has come to be desired by
almost everyone, though only some can afford it. The progressive expansion of global
demand makes it possible to meet in different parts of the world various evolutionary stages
of the luxury market, which creates new opportunities, as well as challenges. for example the
stakeholders for luxury brands Gucci and their significance in the company are described
below the main stakeholders are employees, managers, government, etc.
Employees: Employees of the company as the stakeholders creates the economic well being
of the company (Barnett, Henriques and Husted 2018).
It is essential for the company to involve its employees as stakeholders which creates the
sense of belongingness to the employees so that the employees can get motivated by
compensatory packages and continues to increase the employee’s economic health.
According to an Independent article Luis Vuitton employee staff are very satisfied working
for the big enterprise everything is very productive with their product training and staff
development that helps you in your career progression (Sara Yung, Tuesday 4 October 2016)
Managers: the managers as stakeholders plays a key role in the success of the business. As
the managers forms and designs the project in such a way that it increases the company value
in the market (CARDONA and et.al., 2018). Managers always focuses on the management

of the company stakeholder by hearing the suggestion of the stakeholder and use to take
decision on basis of that. Burberry the British luxury fashion house signifies managers to
develop the management work in quality for increasing the company sales and improve the
company financial report by comparison with the previous financial report and take measures
to improve it.
Government: The managers of luxury brands always try to build the strong relationship
with the government to help the company to become more successful by following all the
rules and regulation of the company. Government can get the benefits for increasing the
economic wealth of the company (Hayes, 2018).
Investors: The role of an investors is that they provide the financial help to the company for
investing the money in different activity. Investor used to get the monetary return from the
company. Usually an investor invests in a firm which is able to earn enough profit by the
help of the unique idea to lead the market.
SHAREHOLDERS: the shareholders invest in the share capital of the company and
becomes the owner of the company by the proportionate share taken by the shares.
shareholders are able to participate in the decision making of the company have the voting
rights in the company and they can get the profit in the company as per the earning of the
company in the particular financial year(Hazlett, McAdam, and McKee, 2019). The
significance of the luxury brand Gucci shareholders is that the company distribute the
dividend to the shareholders when the company had earned the profit it is not compulsory to
give every financial year when the company had incurred losses. Hence the pressure of
giving dividend lies less on the company.

The company faces problem in managing the relationship to take care of all the shareholders
and fulfil their need with the satisfaction in terms of dividend received by the shareholders
and the overall profit earned by the company (Jachi and Yona, 2019).
1.2 significance of problems in managing
relationship with stakeholders
An investigation into the problems that luxury brands are facing in managing the relationship
with stakeholders are that the stakeholders focuses on safeguarding their position in the
organization and they always try to influence the functioning of the business according to
their need which influence the work of the company and some time it become big problem
for the organization. Through the critical analysis the stakeholders of the company has been
find that there are many confusion in regarding the function of the organization is created by
the stakeholder due lack of the effective communication in between the company and
stakeholders (Kannan, 2018). The result of the investigation has establish that relationship
with stakeholders not able to fulfil the social and governance responsibility of the luxuries
brand like Gucci. As per a report a critical investigation was done on the supply chain of the
company in relation to management of stakeholders of the luxury brand Gucci supply chain
uses the direct and indirect channel of distribution for increasing the brand awareness of the
company in public establishes to attract more stakeholder for the company (IMPACT OF
STAKEHOLDERS, 2019).
1.3 aim and objective
The research aims 'To analyse the relevance of stakeholder relationship management for
luxury brands, A case study on Gucci.'
Objectives:-
To examine the concept of relationship management with stakeholders.
To identify the challenges faced by managers in building and maintaining stakeholder
relationship in Gucci.
To recommend the strategies relevant in development of healthy relationships with
stakeholders of Gucci.

REFERENCES
Books and Journals
Astuti, S.P. and Utami, D.E., 2018. Pengembangan Kualitas Perguruan Tinggi Islam
Berdasarkan Keinginan dan Kebutuhan Stakeholder. JAS-PT Jurnal Analisis Sistem
Pendidikan Tinggi.2(2). pp.71-82.
Barnett, M., Henriques, I. and Husted, B., 2018. The Stakeholders Who Knew Too Much?
How the Digital Age Decreased Stakeholder Influence over Corporate Conduct. Academy of
Management Global Proceedings. (2018). p.23.
Barnett, M.L., Henriques, I. and Husted, B.W., 2018. Governing the void between
stakeholder management and sustainability. In Sustainability, Stakeholder Governance, and
Corporate Social Responsibility (pp. 121-143). Emerald Publishing Limited.
CARDONA, J. and et.al., 2018, October. The Transformative Power of Singular Stories:
Making the Case for Qualitative Evidence in Healthcare Contexts in Colombia.
In Ethnographic Praxis in Industry Conference Proceedings (Vol. 2018, No. 1, pp. 600-613).
Desai, V.M., 2018. Collaborative stakeholder engagement: An integration between theories
of organizational legitimacy and learning. Academy of Management Journal.61(1). pp.220-
244.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Hazlett, S.A., McAdam, R. and McKee, L., 2019, July. Stakeholder Management and
Aligning Business and Societal Goals: A Case Study Analysis. In Academy of Management
Proceedings (Vol. 2019, No. 1, p. 15755). Briarcliff Manor, NY 10510: Academy of
Management.
Höglund, L., Mårtensson, M. and Safari, A., 2018. Expectations and the performance of
governance functions between a board, management and other stakeholders: the case of
Robotdalen. Journal of Management and Governance.22(4). pp.805-827.
Jachi, M. and Yona, L., 2019. The Impact of Professional Competence & Staffing of Internal
Audit Function on Transparency and Accountability Case of Zimbabwe Local Authorities.
Kannan, D., 2018. Role of multiple stakeholders and the critical success factor theory for the
sustainable supplier selection process. International Journal of Production Economics.195.
pp.391-418.
McKinley, E. and et.al., 2019. Ecosystem services: A bridge or barrier for UK marine
stakeholders?. Ecosystem Services.37. p.100922.
Minnens, F. and et.al., 2018. Food industry stakeholders’ perspectives on sharing information
to prevent and detect food integrity issues. In Belfast summit on Global Food Integrity:
Ensuring the integrity of the world's food supply.
Patil, S. and et.al., 2018. Cancer oriented biobanks: A comprehensive review. Oncology
reviews.12(1).
Stubbs, W. and Higgins, C., 2018. Stakeholders’ perspectives on the role of regulatory reform
in integrated reporting. Journal of Business Ethics. 147(3). pp.489-508.

Tan, C.D. And et.al., 2018, December. Key Influencing Factors for Cross-organizational R &
D Project Stakeholder Management. In 2018 IEEE International Conference on Industrial
Engineering and Engineering Management (IEEM) (pp. 651-655). IEEE.
Yang, L.E., Chan, F.K.S. and Scheffran, J., 2018. Climate change, water management and
stakeholder analysis in the Dongjiang River basin in South China. International Journal of
Water Resources Development.34(2). pp.166-191.
Online
IMPACT OF STAKEHOLDERS. 2019. [ONLINE]. Available
through<https://yourbusiness.azcentral.com/impact-stakeholders-4315.html>