BMS412: Stakeholder Influence on Morrison's Business Practices

This report analyzes the relationship and influence of stakeholders on Morrison's business practices, fulfilling the requirements of the BMS412 module. It identifies and examines both internal stakeholders, such as employees, investors, and the board of directors, and external stakeholders, including customers, suppliers, and the government. The analysis assesses how Morrison engages with these stakeholders and the benefits of such engagement. The report highlights the significant impact of each stakeholder group on Morrison's operations, financial stability, and overall growth. It emphasizes the importance of maintaining strong stakeholder relationships for enhancing business performance and achieving organizational goals. The findings are supported by academic literature and specific examples from Morrison's business environment, providing a comprehensive understanding of stakeholder management within the organization.

ANALYSIS OF RELATIONSHIP
AND INFLUENCE OF
STAKEHOLDERS ON
COMPANY

INTRODUCTION
 Stakeholder can be defied as a kind of party that
has interest within company and can directly
impact business in both positive and negative
manner.
 There are two main types of stakeholders both
internal and external stakeholders and all the
stakeholders have interest in business in different
manner.
 Stakeholders refers party of people who have
interest in a company and support organization
for meeting goals by performing several roles.

Relationship and influence Impacts of internal and external
stakeholders on business organization
 Stakeholders play a vital role in business organization as it helps company in
accomplishing their goals. Companies of all sectors have both internal and external
stakeholders.
 In regard to Morrison it can be said that it has improved relation with its both internal
and external stakeholders. It values its stakeholders because it knows that stakeholders
are the one who perform several roles and help company in meeting goals. Some
internal stakeholders that have critical impacts on business growth are:

Continue..
 Employees: Employees are the one who want Morrison to grow and develop. They know if
company grows and develop then it will affect their performance so, they strive hard for improving
quality of products. As per the stakeholder analysis of Morrison it is known that employees have
high interest. Morrison is also playing a vital role in satisfying needs of its employees for increasing
retention rate. It knows that high employees' satisfaction rate is associated with improved image and
growth of its business. So, for improving relation it provides motivation and perks to them.
 Investors: Investors are important for Morrison because they help company in improving
its financial stability, Morrison allows people to buy as well as sell its shares through stock and
shares ISA. It is found that manager of Morrison helps investors of shareholders of this company
about ways of managing them. It becomes beneficial for shareholders as they can make money as
per the guidance and support of them. Morrison focuses on improving relation with people and also
focus on improving image. Improved image can lead to better investors and growth of company as
well.

Continue…
 Board of directors:
 Board of directors are main internal stakeholder for Morrison. They play
several roles, and they are mainly responsible for supervising, retaining
and providing direction for company.
 They take interest and want company to grow and develop. But it is found
that manager of Morrison does not pay much attention towards their needs.
 There is a lack of motivation among board of directors. For developing
and having positive impacts, it is important for manager to satisfy their
needs and take their demands into consideration for making them feel
valued.
 It can also be said that by satisfying needs of board of directors, company
can take advantage of competitive advantage because this stakeholder
governs organization and maintain relation with CEO.

External Stakeholders
Some of the external stakeholders are:
Customers: They are one of the main external stakeholders of Morrison. They are
the one who can impact Morrison in both positive and negative manner. they have high
influence on company because if customers change their buying habits or switch to
another company for products or services required by them then it will directly impact
sakes of company which will influence overall revenue of Morrison. Customers have
indirect relationship with suppliers because if there is a change in buying pattern or
chose of customers then suppliers need to change their manufacturing and distribution
practises.

Continue…
 Suppliers: They are another important external stakeholder of Morrison as they are main
providers of merchandise to be sold. Suppliers provide raw materials for manufacturing or
sometimes they are the one who supply finished goods to the company. Suppliers also have high
influence on the company because if they supply degraded quality of raw material then it will
directly impact overall quality of final products sold by Morrison. It is important for Morrison to
maintain good relationship with their suppliers so that they can get required material of high
quality on time. Morrison can do this by providing payment to suppliers on time.
 Government: Another important stakeholder of Morrison is Government. Legislation
made by government is important for Morrison to be followed. Not doing so can impact business
of Morrison. Government has direct influence on the company because they can make running
business for company easier or difficult.

Conclusion
 From the above study it has been summarised that stakeholders plays a vital and
important role within organizations.
 Stakeholders can directly impact growth of an organization. It is important for
organizations to focus upon maintaining strong relationship between stakeholders.
 There are two main types of stakeholders and both of them impact organization in both
positive and negative manner and this relationship can help firm in enhancing their
overall growth.

References
 Derakhshan, R., Turner, R. and Mancini, M., 2019. Project governance and
stakeholders: a literature review. International Journal of Project Management. 37(1).
pp.98-116.
 Li, Y. and et.al., 2017. Identifying stakeholders and key performance indicators for
district and building energy performance analysis. Energy and Buildings. 155. pp.1-15.
 Oppong, G.D., Chan, A.P. and Dansoh, A., 2017. A review of stakeholder management
performance attributes in construction projects. International journal of project
management. 35(6). pp.1037-1051.