MGT501 Business Environment: Reliance Stakeholder Analysis

This report provides a comprehensive stakeholder analysis of Reliance Industries, examining both internal and external stakeholders. It identifies key stakeholders such as investors, customers, employees, and the community, detailing their roles, interests, and influence on the company's operations. The report explores the nature and degree of stakeholders' interests and potential conflicts, evaluating their competitiveness and cooperative potential. A stakeholder matrix is used to classify stakeholders based on their influence and interest, identifying offensive, swing, hold, and defensive groups. Furthermore, the report compares Reliance's stakeholder dynamics with those of Marriott International, highlighting similarities and differences in their stakeholder management approaches. The analysis covers functional areas within Reliance, including operations, marketing, and human resources, and emphasizes the importance of stakeholder engagement for organizational growth and transparency. The report concludes with a summary of key findings and insights into effective stakeholder management strategies for Reliance Industries.

Running Head: RELIANCE 0
Business Environment

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Executive summary
 This report brings out an analysis on the stakeholders whose engagement influence
the business operations either directly or indirectly.
 Firstly, it has identified the stakeholders of reliance and its associated roles. Further, it
is important to know the degree and extent to which the interest of stakeholders and
its related to conflicting interests with certain level of crucial stakeholder`s influence
and impact.
 In order to analyse the impact and empowerment of each stakeholder, it is necessary
to evaluate their competitiveness and potential cooperative related sot their
engagement in Reliance operations.
 Each stakeholder has certain level of power and position to influence the effectiveness
of the organisation (Koehler, & Raithel, 2018).
 In reliance company, the major stakeholder is investor whereas Marriott has customer
as the main stakeholder.

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Contents
Introduction of Reliance Company........................................................................................................3
Functional areas of Reliance Company.................................................................................................3
Identification of stakeholders and their role...........................................................................................4
Nature and degree of stakeholder`s interests and their related implication of the conflicting interests. .5
Comparison of Reliance stakeholders with the Hospitality industry (Marriott International)................8
Conclusion.............................................................................................................................................8
References...........................................................................................................................................10

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Introduction of Reliance Company
Reliance Company is an Indian multinational company founded by the late Dhirubhai
Ambani. It has leading presence across the power, telecommunication, financial services,
media, infrastructure, health care, as well as entertainment. In the recent time, it is playing
most significant role in shaping the destiny of the nation. As of the year 2018, it was ranked
on number 148 in the Fortune Global 500 list. In
India, it proved to be the biggest taxpayer in the private sector. It has different subsidiaries
that include reliance retail, Reliance Logistics, Reliance Life sciences, Reliance Solar,
Reliance Clinical Research services, LYF, Reliance Jio, and Network 18. In the year 1018, it
has around 29,533 permanent employees. Among these employees, 1521 are women and 70
are employees with disability.
It has also given emphasis on the building such platforms that helps the people to
generate opportunities and avenues. The products and services of the Reliance Industries
touch the different citizens across social and economic spectrums. It is also working
effectively on the different innovative technologies that tend to provide the seamless access
as well as provide the better quality of life (Chinthala, Madhuri & Kumar, 2017). Its efforts
also give real value to each of its stakeholder. It is working effectively in order to provide the
best financial returns to its shareholders. It has also joined the biofuel developer of Australia
in order to leverage the demand of Indian for alternative fuel (Henisz, 2017). The partnership
with the “Western Australia based Algae.” It has built the pilot biofuel. This plant is designed
by it in order to tailor the technology for its local setting. It is regularly driving the innovation
programs in order to improve its level of competitiveness in the domestic as well as
international market.
Functional areas of Reliance Company
Organisation function is the group of activities that is carried out in the different department
of business. The different functional areas include the operations, human resource, finance,
operations and marketing. It has different operation department for each of its business. This
department highly support the suppliers as well as customers for reducing the wastage. By

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effectively working on this, it helps the company in driving its sustainability (Dominic &
Shenoy, 2018).
Marketing function also plays a significant role. It assist the company in effectively
aware the customers through newspaper, advertisement as well as magazine. It also plays a
significant role in satisfying the customers through its services. In India, it is providing the
better internet services in lower cost. The main role of the service department is to ensure the
healthy promotional among people (Nyangwe & Buhalis, 2018). Besides this, human
resource function also remains the main functional area of Reliance. Using this, it regularly
engages, attract as well as retain the best and talented employees. as per the changing needs,
it provides the training to people accordingly. due to this, organisation is effectively able to
carry out its responsibilities.
In the starting phase, Reliance Industries adopted the effective service model for the
support services. The shared services are seen in the areas of financial management, human
resource management, financial management and some others. In its functional areas, Mr
Ambani is giving emphasis on the shared services (Heggde & Shainesh, 2018). IT department
is seen as the backbone of the Reliance Company. By making the move in the Indian
corporate, several other global players have also started operating across geographies in retail
and insurance. It has grown its wings across the globe. Due to this, it has to deal with the
different countries. It can be possible only by ensuring the effective working in the IT
department. The department of IT helps it in ensuring the effective technological innovation
and changes.
Identification of stakeholders and their role
Stakeholder plays an important role in determining the organisational growth where
stakeholder engagement provides transparency with continuous improvement. The
stakeholder lists include government, employees, local community, suppliers, trade union,
NGOs, investor, shareholders, and customers. Each of them has been identified on the basis
of their engagement such as government interrupts industrial bodies and forums, employees
engage through meetings, employee satisfaction, newsletter, and training (Brunton, Eweje, &
Taskin, 2017). Customers has its engagement through customer meetings, customer
satisfaction, other web-based portals and local community includes visits and camps.

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Investors and shareholders are engaged in the company with the help of investors meet,
general meetings, annual reporting and the suppliers have engaged through site visiting and
personal interactions. Trade unions engages through work committee, grievance committee
and the union meetings (Koehler, & Raithel, 2018).
Nature and degree of stakeholder`s interests and their related implication of the
conflicting interests
Level of crucial stakeholder`s influence
Investors- this group is interested in deriving maximum profits. Investors wants lowest
operational costs so that Reliance can delegate maximum dividend and Earning per share.
Reliance often tries to address the concern of the stakeholders with the help of stable
business, innovation, and growth rate. In order to create more interest in its shareholding in
the market, the company has been planning to invest in Saudi Arabia with an aim to purchase
an mine so that they can increase the market segment and diversification of their offering to
the customers leading to greater holding of the shares to the investors (Ujene, & Edike,
2015).
Customers- This group pressurizes the company to offer such goods that are priced low with
great quality. In relation to reliance limited, customers have wish to get the products at low
price and affordable price with quality products. The social responsibility department ensures
that the company offers quality with the help of R&D and other up to date products (Ujene, &
Edike, 2015).
Employees- The employees are important constituent of internal stakeholder group as a part
of reliance groups (Jung, & Valero, 2016). The organisation has several programs and
policies in order to satisfy the employee’s needs such as fair wages, job security, and their
health concerns. Employees enforces the company to comply as per the compliance
requirement and law so that the company can form several policies and programs to fulfil
needs (Jung, & Valero, 2016).
Community- The crucial interest of this stakeholder is sustainable development and reporting.
The organisation focus on the efforts in order to gain group with the help of energy
management, health and safety programs, policies, product stewardship (Decker, 2018). The

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community pressurises to reflect the return that has been derived from the resources from the
community and society (Decker, 2018).
Create a stakeholder matrix
(Source: Zientara, 2017)
Offensive- This stakeholder group consists of characteristics of people who have high
competitive threat and potential cooperative. This group has the priority of focusing on
quality assurance. Organisation has been forming greater significance as big “menace”
customers amongst the organisational strategy. This group enforces the company to launch
and diversify its portfolio in terms of market segmentation and finally it started offering
clothing, oil services, accessories, supermarkets, mobile and network services (Lenz, &
Hahn, 2015). This can help the organisation to focus on strategies that can be useful to the
dealers. One major belief can the changing preferences and nature of customers, which shows
the company, has to change its objectivity. The final belief is where the organisation will
implement the position of the stakeholders. Reliance targets all types of people including
lower middle class, higher middle class, and high-income class people. People are likely to
buy high quality in terms of clothing (Lenz, & Hahn, 2015). For instance- with the help of
reliance Trends, the company has been offering platform to some brands such as RIO, DMX,
denim and many more (kim, Song, & Lee, 2016). Other instance can be Reliance Fresh is a
supermarket that offers all fresh, diary, and regular household goods, which signify that
Reliance offering, are extended to various segments so the company has several types of
stakeholders. The company ensures that it deals in its oil and petroleum products and services
safety without harming environment as government necessities the correct regulation of
regulation Acts. A customer spend a lot of money just because they trusts brand name of

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Reliance. People and customers control offering, promotion, and modification of the strategy
(Beltrán, Melón, & Valera, 2017).
Swing- This stakeholder group has the feature of high cooperative potential with a particular
threat of great competitiveness. Government agencies have the power and position to affect
the situations and consequences of circumstances that has been happening on the behalf of
inner organisation (Shan, You, & Xie, 2016). There are three major thoughts while dealing
with the stakeholders and the main associated thing is the changing the rules and regulations
with the usage of laws and legislations and other changing decision is forum. The
organisation have started following certain decisions, which can offer and differ from the
existing ones (Beltrán, Melón, & Valera, 2017).
Under Securities and Exchange Commission considers government agencies and their related
ethical laws in order to protect the interest of customers. Any misleading and ethical issue can
force the board of negotiation to reach to an agreement in between two parties. On important
basis, Ambani has to strict steps to eradicate unethical issues (Shan, You, & Xie, 2016).
Hold- With this category, a stakeholder has the feature of remained in low potential with
lower threat of competiveness. It is important to control stakeholder named “Suppliers” that
can keep in the minds when encroaching towards damaging the company`s name. Three
crucial strategies is to sustain and prevent them in the consideration of changes in the
company (Sukmana, Ahlan, & Kartiwi, 2015).
With this category, it is seen that suppliers are main and hold stakeholders. Some of
the important suppliers of the company are Hose reels, Hydraulic application with products,
pipefittings, speciality products, steel tube fittings, oilfield supplies, regulators, the
lubricators, and many more (Sukmana, Ahlan, & Kartiwi, 2015). The company suppliers is
extended to its extensive part such as reliance suppliers, reliance trends, reliance toluene,
reliance jio, reliance mart, reliance electric suppliers as company has such as diversified
portfolio (Chomchaiya, & Esichaikul, 2016).
Defensive- With these types of stakeholders, it is seen that it possess the feature of huge
competitiveness threat and potential cooperative is quite low. Defensive stakeholders do not
add any value to the company. The organisation will have to prevent competitive menace in
organisation (Fusch, Hall, & Fusch, 2018). There are three main strategies while managing
the stakeholders where it is a reinforcement main belief for company. Investors are identified

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as defensive stakeholders because it is necessary to modify and offer luxurious meetings and
plans to the investors. A shareholder is always just interested in profitability, EBIT, and
dividends for which they always seek for reports while seeing the strategies of the company
when it is necessary or not (Fusch, Hall, & Fusch, 2018).
Comparison of Reliance stakeholders with the Hospitality industry (Marriott
International)
It is true that investors play a significant role in the stakeholder category of Reliance
Company. It is because several partners are associated with the Reliance in order to ensure
the smooth functioning of the business. Due to this, several business entities, manufacturer
are also included in the stakeholder category. They provide the raw material to the company,
which it further proceeds in to the final good. as compare to this, the major stakeholders of
Marriott are the customers, associates, communities, supply chain as well as government. The
interest of the Marriott International is to get involved in the volunteering, fundraising, or
community engagement programs. Reliance stakeholder comprises of the conference calls,
annual report, as well as annual shareholder meetings. As compare to this, the interest of the
franchise of the Marriott is the sustainable hotel development. In addition to this, Marriott is
the hospitality industry major includes the customers. It is true that it is essential for the
hospitality industry to satisfy its customers. Employees also play an essential role in the
Marriott because they are the people who directly deal with the customers. If customers will
not get satisfied with their services, they might not visit the hotel. As compare to this, if
reliance is providing any internet service, employees are not required to connect with them
directly. In this way, it is clear that the Reliance and Marriott has different stakeholders. Due
to their different market segments, it is true that both the industries have different shared
value of the stakeholders.
Conclusion
In the limelight of above discussion, it can be concluded that stakeholders are the
major source of business entities. It helps the company in bringing the positive results from
several stakeholders. Reliance Industries has proven itself well in several fields. It do not only
operate in the India but also operates outside India. The major areas where company give
emphasis are good relation with several parties, environmental protection, suppliers as well as
effectively caters with the government policies and rules. From the different stakeholders of

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Reliance, it is seen that the major stakeholders of the company affect the decision making
process of the company. It also pits the pressure on the company to bring necessary changes.
For example- if needs and wants of the customer changes, it has to bring the changes in its
different market segment.
Reliance has also properly understood the requirement of its each of the stakeholders.
By understanding their requirement, it has always tried its best to fulfilling the same. It has
also made several efforts in the CSR and sustainability approach (Lynch‐Wood, Williamson
& Jenkins, 2009). It is true that the fulfilment of the different stakeholder needs has helped it
in earning more growth and profit. Stakeholders also engage with the industry in proper
manner due to its string brand image. It has effectively understood that the business can only
be run by the effective cooperation with the stakeholders. Due to this, it has also made several
significant strategies for them. Due to the growing concern over the stakeholders, it has
become essential for the company to ensure that it must follow the ethical consideration in
the business for smooth functioning.

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