Reliance Industry Limited: Business Environment and Stakeholders

This report provides a comprehensive analysis of the business environment of Reliance Industry Limited, a major private sector company in India. It examines the functional areas within the company, including strategic decision-making, marketing, finance, human resources, and technology. The report identifies and explores both internal stakeholders, such as employees, the CEO, board of directors, and investors, and external stakeholders, including customers and governmental bodies. It details the roles and interests of each stakeholder group, highlighting the nature and degree of their interests in the company's operations. The report further investigates the implications of conflicting interests among stakeholders, utilizing the agency theory to understand potential issues in communication and financial matters. Finally, it assesses the level of influence each stakeholder group holds, providing a stakeholder matrix for a clear understanding of their impact on Reliance Industry Limited's performance and strategic decisions. References are provided to support the analysis.

Running head: BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
Name of the Student
Name of the University
Author Note

1BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
Table of Contents
Functional areas of Reliance Industry limited.....................................................................2
Internal stakeholders and their roles of Reliance Industry Limited.....................................3
External stakeholders and their roles of Reliance Industry Limited....................................4
Nature and degree of main stakeholders’ interests..............................................................5
Implications of conflicting interests of Reliance Industry Limited.....................................6
Level of main stakeholders’ influence of Reliance Industry Limited.................................7
Stakeholder matrix of Reliance Industry Limited...............................................................8
References............................................................................................................................9

2BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
Functional areas of Reliance Industry limited
The Reliance Industry Limited is one of the major private sector companies that have
been operating within the territorial boundaries of the Indian subcontinent. The major
departments that are present within the concerned company refer to the departments that are
related to the strategic decision making, the financial conditions, the department of the human
resources, the departments that are related to the operations that have been taking place within
the organization and the department responsible for the proper marketing of the products and the
services that are produced by the company (Ril.com, 2019). The departments that are related to
the strategic decision making within the company refer to the departments that are responsible
for deciding on the various strategies that are required for the development of the company in the
given market. The department of the strategic decision-making helps in the decision-making
within the company thereby enabling the company to deal with the conditions wherein the
strategic decisions undertaken in order to put forth an analysis of the concerned market wherein
the concerned business organization has been operating. The company in discussion, Reliance
Industry Limited, is known to have employed a team that for the analysis of the competitive
advantage of the company in the given market. The other major functional area of the Reliance
Industry Limited refers to the department of marketing within the company (Ril.com, 2019). The
marketing department within the company refers to the organizational department that deals with
the activities that are based on the attraction of the clientele of the company as well as the
various ways in which the company might reach out to the concerned clientele of the
organization. The department of marketing within the company might further assist in the
designing and the development of the products that are marketed by the company. The
department of finance also holds a great amount of importance in the smooth functioning of the

3BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
company. The financial department tends to deal with the matters that are related to the business
capital of the organization and the needs of the company to seek for the loans or the investments
within the organization. The human resources department of the department is one of the most
important functional areas that is present within the organization. The majority of the internal
stakeholders of the company comprise of the employees of the organization (Andriof &
Waddock, 2017). The employees are known to be the active force behind the achievement of the
overall success of the organization in the given market. The technological department within the
organization also poses to be an important department that is essential for the functioning of the
organization. This department helps in the proper and the smooth function of the company as
well as deals in the assisting the development of the operations of the country as well. This in
turn helps in the development of the company in the overall performance of Reliance Industry
Limited in the given markets.
Internal stakeholders and their roles of Reliance Industry Limited
The internal stakeholders of the organization are observed to maintain a financial interest
in the functionalities of the given organization. The internal stakeholders of the Reliance Industry
Limited refers to the employees of the organization as well as the investors of the company. The
employees of the organization form one of the most important stakeholders that are internally
connected to the overall performance of the company. The employees of a given organization are
directly linked to the overall activities related to the generation of the profit and revenue within
the company. The members of the workforce are further considered to be one of the major
contributors to the generation of the revenue within the given workforce (Absar, 2016). The
other major internal stakeholder within the organization refers to the administrative figures
within the company. These stakeholders might further include the CEO and the board of

4BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
directors of the company. The CEO of the organization is known to have been one of the major
internal stakeholders since the person along with the members of the board of directors aim at
undertaking the various decisions that enable a smooth performance of the company in the given
market (Garai, 2017). The investors of the organization further form one of the key internal
stakeholders since they tend to influence the revenues that are generated by the implementation
of the investments that they contribute towards the organization in discussion, Reliance Industry
Limited.
External stakeholders and their roles of Reliance Industry Limited
The major external stakeholders of Reliance Industry Limited refer to a plethora of
people and bodies. The most important external stakeholder of the organization refers to the
clientele of the organization. The clients of the organization are directly linked to the revenue
generation of the company in the given area of operations. The other major external stakeholders
of the organization refer to the governmental bodies within the given place wherein the company
has been featuring. The local community that is present in the area are further known to be
influencing the decisions that are undertaken by the organization (Mani, Agrawal & Sharma,
2015). The involvement of the governmental bodies along with the local community members
tend to help the concerned organization to maintain the required balance within the
organizational performance and the performance of the competing organizations in the given
market. The major influence of the governmental bodies on the overall performance of the
organization refer to the various points of contact wherein the concerned management of the
organization might need to follow certain measures that are set by the local community as well as
the governmental bodies active within the given market scenario (Munshi & Dutta, 2016). The
factors include the several regulations on the payment of the taxes, the regulations imposed on

5BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
the workforce, regulations that determine the worktime and other such factors that tend to have a
proper influence on the operations of the company as well.
Nature and degree of main stakeholders’ interests
The main stakeholders of the organization refer to those that deal with the functioning of
the company in the given market. The major stakeholders of the organization refer to both the
internal as well as the external stakeholders who have been influencing the development and the
organization within the given markets. The internal stakeholders of the Reliance Industry
Limited refers to the employees of the organization, the administrative figures within the
company inclusive of the CEO and the board of directors of the company. The CEO of the
organization is known to have been one of the major internal stakeholders since the person as
well as the investors of the company. The employees of the organization form one of the most
important stakeholders that are internally connected to the overall performance of the company
(Cooper, 2017). The employees as well as the CEO of the organization tend to contribute
majorly to the development of the organizational performance through their direct linkages to the
revenue and the profit that is earned by the organization in discussion. The major external
stakeholders of Reliance Industry Limited refer to the clientele of the organization, the investors,
the governmental bodies within the given place wherein the company has been featuring
(Economictimes.indiatimes.com., 2019). The local community that is present in the area are
further known to be influencing the decisions that are undertaken by the organization. The clients
of the organization are directly linked to the revenue generation of the company in the given area
of operations and are thus considered to be one of the major stakeholders of the company as well.
The major influence of the governmental bodies on the overall performance of the organization
refer to the various points of contact wherein the concerned management of the organization

6BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
might need to follow certain measures that are set by the local community as well as the
governmental bodies active within the given market scenario (Bourne, 2016). This in turn
assures the development of the company in terms of the revenue that is collected by the company
in the given market conditions. The company in discussion, Reliance Industry Limited, is
considered to be a successful company due to the high amount of revenues that the company has
generated through the performance of the company.
Implications of conflicting interests of Reliance Industry Limited
The conflicts that exist among the stakeholders of the organization might be identified
with the help of the implementation of the agency theory of stakeholder management. The
agency theory helps in the proper identification of the conflicts as well as helps in resolving the
issues that are faced by the organizational stakeholders (Bosse & Phillips, 2016). The company
in discussion, the Reliance Industry Limited is observed to have been facing certain issues that
are related to the conflicts that have been taking place among the principal and the agents. The
agency theory of stakeholder management helps in the explanation of these issues in a proper
manner such that the issues are explained and properly communicated to the concerned
management of the organization. The company in discussion, Reliance Industry Limited is
observed to have been facing issues in the communication that is extended to the employees of
the organization (Rajablu, Marthandan & Yusoff, 2015). This lack of communication has often
led to the development of the severe issues that affect the overall performance of the
organization as well. There is a blockage in the proper communication between the management
and the employees of the organization. This lack of communication often leads to the improper
conveyance of the messages to the employees of the organization. The concerned management of
the organization also faces issues regarding the communications that are to be presented with the

7BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
several external stakeholders of the organization. The stunting of the communication between the
organizational management and the external stakeholders might lead to the several issues within
the organizational performance within the given market (Bendickson et al., 2016). The major
issues that are being faced by the external stakeholders is the delay in the receipt of the interests
and dividends against the possession of the debentures and the shares of the organization. This
might lead to the withdrawal of the financial support that is extended to the organization leading
to the dearth of funds within the organization.
Level of main stakeholders’ influence of Reliance Industry Limited
The key internal stakeholders of the Reliance Industry Limited refers to the employees of
the organization as well as the investors of the company. The other major internal stakeholder
within the organization refers to the administrative figures within the company. These
stakeholders might further include the CEO and the board of directors of the company. The
investors of the organization further form one of the key internal stakeholders since they tend to
influence the revenues that are generated by the implementation of the investments that they
contribute towards the organization in discussion, Reliance Industry Limited (Cordeiro &
Tewari, 2015). The employees of the organization are considered to be the major internal
stakeholders of the organization due to the fact that the employees contribute the largest amount
of the effort in the establishment of the proper competitive advantage of the company as well as
assists the high amount of revenue earning on the part of the company (Kent & Zunker, 2017).
The major external stakeholders of Reliance Industry Limited refer to the clientele of the
organization, the governmental bodies within the given place wherein the company has been
featuring. The local community that is present in the area are further known to be influencing the
decisions that are undertaken by the organization. The clients of the organization are directly

8BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
linked to the revenue generation of the company in the given area of operations and are thus
considered to be one of the major stakeholders of the company as well (Al-Nasser Mohammed &
Muhammed, 2017). Reliance Industry Limited might need to follow certain measures that are set
by the local community as well as the governmental bodies active within the given market
scenario in order to gain higher revenues.
Stakeholder matrix of Reliance Industry Limited
Stakeholders Impact
Influenc
e
Factors important
to stakeholder
Strategy for stakeholder
engagement
Employees High Moderate
Work-life balance,
Training.
Regular meetings
CEO High High High financial return
Feedback at regular
intervals of 3 or 6 months.
Clients High High Better service quality
Feedback at regular
intervals of 3 or 6 months.
Governmental
bodies
Moderate Moderate
Greater financial
contribution
Press meetings at regular
intervals.
Partners High High High financial return
Feedback at regular
intervals of 3 or 6 months.
Local
community
Moderate Moderate
Greater social
contribution
Press meetings at regular
intervals.

9BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
References
Absar, M. M. N. (2016). Stakeholders’ views on voluntary human capital disclosures in
corporate annual reports of top Bangladeshi and Indian listed companies. Journal of
Human Values, 22(3), 209-220.
Al-Nasser Mohammed, S. A. S., & Muhammed, J. (2017). The relationship between agency
theory, stakeholder theory and Shariah supervisory board in Islamic banking: An attempt
towards discussion. Humanomics, 33(1), 75-83.
Andriof, J., & Waddock, S. (2017). Unfolding stakeholder engagement. In Unfolding
stakeholder thinking (pp. 19-42). Routledge.
Bendickson, J., Muldoon, J., Liguori, E., & Davis, P. E. (2016). Agency theory: the times, they
are a-changin’. Management Decision, 54(1), 174-193.
Bosse, D. A., & Phillips, R. A. (2016). Agency theory and bounded self-interest. Academy of
Management Review, 41(2), 276-297.
Bourne, L. (2016). Stakeholder relationship management: a maturity model for organisational
implementation. Routledge.
Cooper, S. (2017). Corporate social performance: A stakeholder approach. Routledge.
Cordeiro, J. J., & Tewari, M. (2015). Firm characteristics, industry context, and investor
reactions to environmental CSR: A stakeholder theory approach. Journal of Business
Ethics, 130(4), 833-849.
Economictimes.indiatimes.com. (2019). Reliance Industries share price up by 0.88% - Why is
Reliance Industries share price up today?. Retrieved from

10BUSINESS ENVIRONMENT – RELIANCE INDUSTRY LIMITED
https://economictimes.indiatimes.com/reliance-industries-ltd/stocks/companyid-
13215.cms
Garai, S. (2017). Impact of corporate social responsibility on firm’s financial performance with a
special reference of RIL. International Journal of Applied Research, 38-41.
Kent, P., & Zunker, T. (2017). A stakeholder analysis of employee disclosures in annual
reports. Accounting & Finance, 57(2), 533-563.
Mani, V., Agrawal, R., & Sharma, V. (2015). Supply chain social sustainability: A comparative
case analysis in Indian manufacturing industries. Procedia-Social and Behavioral
Sciences, 189, 234-251.
Munshi, D., & Dutta, S. (2016). Sustainability reporting quality of Indian and American
manufacturing firms: A comparative analysis. Serbian Journal of Management, 11(2),
245-260.
Rajablu, M., Marthandan, G., & Yusoff, W. F. W. (2015). Managing for stakeholders: The role
of stakeholder-based management in project success. Asian Social Science, 11(3), 111.
Ril.com. (2019). Reliance Industries Limited – Retail Markets | Telecom | Petroleum Refining &
Marketing | Petrochemicals | Hydrocarbon Exploration & Production | Jio 4G | Reliance
Shares. Retrieved from http://www.ril.com/
Ril.com. (2019). Reliance Industries Limited | Fortune 500 India | Largest Company in India |
Growth is Life. Retrieved from http://www.ril.com/OurCompany/About.aspx