Economic Models and Concepts: Stakeholder Analysis of BT

This report provides an analysis of economic models and concepts, focusing on a case study of BT. The report examines BT's approach to stakeholder management, highlighting the importance of maintaining good relationships with various stakeholder groups, including employees, customers, suppliers, shareholders, and government regulators. It discusses potential conflicts of interest among stakeholders and how BT attempts to balance these interests through open and transparent decision-making processes. The report also explores BT's ethical considerations, its commitment to providing enhanced services, and its impact on society. It emphasizes the significance of stakeholder satisfaction and the company's efforts to maximize profits for the benefit of all parties involved, while also addressing issues related to social responsibility and environmental impact. References from various academic sources are included to support the analysis.

Running head: ECONOMIC MODELS AND CONCEPTS
Economic Models and concepts
Name of the Student
Name of the University
Author Note

1ECONOMIC MODELS AND CONCEPTS
According to BT case study, stakeholder can be an individual or group of people, who
have interests in business decisions taken by any company. Some internal stakeholders of BT are
its employees while external stakeholders of this company are customers. According to this
company, association with stakeholders is considered as an ethical approach within business
process (Fassin, De Colle and Freeman 2017). As a result, BT also implements some legal
obligations towards some important stakeholder groups like industry and the government
regulators. In addition to this, the company suggests to maintain a good relation with those
stakeholders, as it could be beneficial for them during long-term. Some stakeholders like
suppliers help BT to sustain within competitive business environment while shareholder provides
fund in the form of investment (Xia et al. 2018). Moreover, customers also help the company to
earn profits and consequently BT considers their stakeholders as partners.
In this context, it needs to mention that different stakeholder groups may conflict with
each other, based on their interests. For instance, depending on Next Generation Access
Programme, BT requires to install new cables of optical fibre. This further helps the company to
provide super-brand broadband services all over the country. Though customers receive better
services, it may cause traffic delays as well as disruption due to road work for laying cables.
Moreover, BT can raise controversies through investing in different communities due its lack of
impact on profit generating process. Furthermore, the company experiences conflicts based on its
pricing policy and absence of compulsory redundancies. Hence, it is essential for both directors
and managers to monitor and control these conflicts for protecting self interest of shareholders.
Consequently, they intend to find a solution for balancing between conflict interests of
stakeholders (Pigé 2017). For this, the company always tries to adopt best decision making
procedure. Therefore, managers and directors consider requirements of their associated

2ECONOMIC MODELS AND CONCEPTS
stakeholders. Through operating in an open and transparent way, BT has successfully earned
trust and support of its associated partners. This could help the specified company to sustain
within a competitive environment.
To satisfy customers, BT develops new as well as enhanced services for meeting their
requirements. These customers’ demands consider BT Vision, global teleconferencing services
and connections of high-speed broadband internet. For enabling work at each level, BT needs to
develop a good relation with its stakeholders for sustain within market. These stakeholders are
customers, suppliers, employees and shareholders along with regulators, government and a vast
range of community (Wells et al.2018). BT informs all shareholders about its financial outcome.
It also discussed with them for further plans. The company also rewards shareholders by giving a
share of profits to them. The company helps its employees to improve skills and for this
organises various programmes. Moreover, BT provides attractive rewards as well as good career
prospects to those employees. To maintain good relationship with government along with
industry regulators, the company always tries to follow rules and regulations based on respective
countries, where they operate (Abildgaard and Christensen 2018). On the other side, to maintain
and develop customer base, BT intends to offer products and services to their customers for
meeting their demand. In the context of suppliers, BT also tries to maintain an environment
friendly relationship with suppliers. For this, the company works closely with all suppliers for
using resources and other resources in an efficient way.
In addition to this, partners and communities also play vital role to develop condition of
this company. BT was an official partner of the London 2012 Olympic as well as Paralympic
games. Sustainable impacts in partnership imply long-term impact on business and other related
activities of society. This provides huge opportunity to this company for developing its business.

3ECONOMIC MODELS AND CONCEPTS
Moreover, the impact on society for a company is also important. This represents that a wider
community is an important stakeholder of BT. Through providing jobs, the company can provide
positive impact on this large section of stakeholders. However, the company can also provide
negative impacts. This can be in the form of pollution or other disturbances related to
community. Thus, it generates negative publicity that further could reduce reputation of the
company (Stewart et al. 2018). For protecting interest of this stakeholder, the concerned
company takes social responsibilities by reducing environmental degradation. Moreover, through
providing broadband internet service, BT also helps a large scale of community. Hence, various
activities of BT help it to develop a good relationship with its stakeholders with minimal
conflicts.
All stakeholders want to maximise profits of a company. This is because, increase in
profit can further develop business activities of BT and consequently improve condition of each
stakeholder.

4ECONOMIC MODELS AND CONCEPTS
References:
Abildgaard, S.J.J. and Christensen, B.T., 2018. Cross-Cultural and User-Centered Design
Thinking in a Global Organization: A Collaborative Case Analysis. She Ji: The Journal of
Design, Economics, and Innovation, 3(4), pp.277-289.
Fassin, Y., De Colle, S. and Freeman, R.E., 2017. Intra‐stakeholder alliances in plant‐closing
decisions: A stakeholder theory approach. Business Ethics: A European Review, 26(2), pp.97-
111.
Pigé, B., 2017. Stakeholder theory and corporate governance: the nature of the board
information. Management: journal of contemporary management issues, 7(1), pp.1-17.
Stewart, B., Nicholson, M., Smith, A.C. and Hoye, R., 2018. Sport management: principles and
applications. Routledge.
Wells, G.J., Stuart, N., Furley, P.A. and Ryan, C.M., 2018. Ecosystem service analysis in
marginal agricultural lands: A case study in Belize. Ecosystem Services, 32, pp.70-77.
Xia, B., Qiang, M., Chen, W., Fan, Q., Jiang, H. and An, N., 2018. A benefit-sharing model for
hydropower projects based on stakeholder input-output analysis: A case study of the Xiluodu
Project in China. Land Use Policy, 73, pp.341-352.