Stakeholder Relationship Management Strategies: Tesco and Coles

This report analyzes and compares stakeholder relationship management strategies at Tesco and Coles. It highlights Tesco's poor relationship management, particularly regarding customer communication and responsiveness, and contrasts it with Coles' more favorable approach, which involves customers in the decision-making process. The report outlines a four-step approach to stakeholder management: identification, determining needs, prioritizing, and creating contact. It also distinguishes between the general and specific external environments impacting stakeholder management, emphasizing the importance of multi-advocacy in aligning decision-making with stakeholder needs for effective outcomes. The report references academic sources to support its analysis.

Stakeholder relationship
management

Poor relationship management
Tesco initiated poor relationship
management.
Customers were given least preferences as a
key stakeholders.
Customers were not given enough options to
communicate (Verbeke and Tung 2013).
Thus, determination of customer requirement
is ineffective for Tesco.

Four step approach
Identification of stakeholders.
Determining the need of them.
Prioritizing the stakeholders.
Creating contact with them.

Importance
Identification is important for selecting the
relevant stakeholders.
Further study is important to determine their
approach.
Prioritizing is important to rank them against
their relevancy (Mazur et al. 2014).
Contacting with them is important to create
rapport.

Good relationship management
Coles is having favorable relationship
management.
Customers are involved in the decision
making process.
Effective determination process is initiated
for the customers.
It helps in properly meeting the customer
requirements.

General external environment
General external environment will have
implications on the stakeholder management
holistically.
All the related industries are being impacted.
Majority of these factors is uncontrollable.

Identification of stakeholders
Customers
Government
Global market trend
Suppliers

Specific external environment
These factors are specifically applicable for
Coles.
Do not get determined by the industrial
forces.
Majority of the factors can be controlled.

Identification of stakeholders
Customers
Employees
Managers
Business partners

Importance of multi-advocacy
It helps in managing all the involved
stakeholders.
Properly determining the needs of them
(Pelletier et al. 2013).
Aligning the decision making process
accordingly.
Thus decision making process will be more
effective.

Reference
 Verbeke, A. and Tung, V., 2013. The future of stakeholder
management theory: A temporal perspective. Journal of Business
Ethics, 112(3), pp.529-543.
 Mazur, A., Pisarski, A., Chang, A. and Ashkanasy, N.M., 2014.
Rating defence major project success: The role of personal
attributes and stakeholder relationships. International Journal of
Project Management, 32(6), pp.944-957.
 Pelletier, D., Haider, R., Hajeebhoy, N., Mangasaryan, N.,
Mwadime, R. and Sarkar, S., 2013. The principles and practices of
nutrition advocacy: evidence, experience and the way forward for
stunting reduction. Maternal & child nutrition, 9(S2), pp.83-100.

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