Westpac Bank External Stakeholders: MGT501 Discussion Forum

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MGT501 Discussion forums
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External stakeholders of Westpac
Westpac is one the largest bank in Australia and it has maximised its market growth in the global
market. It is one of the best financial institutions in the Australian market and it has already
covered more than 40% financial market of Australia (Westpac, 2015). Stakeholder engagement
is playing an essential role in the growth and success of the business as there are two types of
stakeholders (internal and external). The main motive of every company is to influence
stakeholders and their interest in business policies through which better interaction between
stakeholders and managers lead to productive result for the company. The 5 main external
stakeholders of Westpac and their interest within the organisation:
 Customers: Customers are playing a high-interest role as stakeholders. They help in
analysing the feedback and ongoing tracking system which is used by the company. Their
complaints received through online surveys and other telecommunication system help in
focusing on overcoming the challenges and in increasing efficiency of the company
(Krstic, 2014).
 Suppliers: Suppliers have high interest as stakeholders in the company as they help in
analysing the risk assessment and help in building a relationship with individual suppliers
in the market. The supplies contact is based on at least the commencement of three years
(Westpac, 2015).
 Employees: Engagement of employees playing a vital role and they are the essential
aspects of Westpac as external stakeholders. Monthly surveys and group communication
help in analysing the problems and issues occur in the company. Their engagement help
in enhancing the performance of the employee in an effective manner (Krstic, 2014).
 Government and regulators: Regular analysis of policies and the following trend will
help in enhancing the system of the company. By analysing regular policies a company
can manage and maintain balance in rates of financial services (Westpac, 2015).
 NGO’s: Regular meetings and monitoring process will help in analysing the
correspondence related to key issues (Westpac, 2015).
These external stakeholders are playing an essential role in the growth and success of the
Westpac Company.
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Difference between stakeholder and shareholders and their role
Stakeholders and shareholders are playing a different role in the context of the organisation and
both are significant as they help in enhancing the growth and profitability of the company in the
market. Shareholders are investors who have purchased shares of the company in order to
assemble and regular fluctuation of financial interest (Investorguide, 2018). Shareholders are
playing a vital role as they are the mega investors of the company and they have enough power
to take further steps or actions in the context of the company. On the other hand, stakeholders are
also playing a role as investors but they invest in the company as a traditional sense as a purpose
of only investing, But the main purpose of the shareholders is to earn maximum profit by
regulating the financial interest of the company in the market.
(Figure: Stakeholder Map)
(Source: By Author)
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Keep
Satisfied
Manage
Closely
Monitor Keep
Informed
High
Influence
HighLow Interest

(Figure: Stakeholder Matrix)
(Source: By Author)
Shareholders are playing a greater role in the organisation as compare to stakeholders because
shareholders are the mega investors which also help in enhancing the growth and help in
increasing the financial sustainability of the company in the market. As stakeholders in the
company cause conflicts because of longtime interest due to which company has to face various
issues (Investorguide, 2018). On the other hand, shareholders can also play the role of
stakeholders by selling the stock of the company in the market at a maximum profit but
stakeholders cannot play a role of shareholders as they have not enough power to take any action
or step in the company.
For example: As customers and employees are the essential stakeholders, their feedback and
monitoring process through regular meeting help in analysing the issues within the company
which can be overcome by their engagement (Investorguide, 2018). On the other hand, users and
governance are the most common stakeholders of the company, their engagement will not help
the company to identify problems and to take further steps to overcome them.
4
High
Power,
Low
Interest
High
Power,
High
Interest
Low
Interest,
low Power
High
Interest,
Low Power
Interest
Power

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References
 Westpac., (2015). Stakeholder Engagement. Retrieve from:
https://www.westpac.com.au/docs/pdf/aw/sustainability/Stakeholder_Engagement_Frame
work.pdf
 Krstic, N. (2014). Stakeholder Management from the Business Perspective. Megatrend
Review, 11(2), 165-182.
 Investorguide. (2018). Stakeholders vs Shareholders – Whats the difference. Retrieved
from http://www.investorguide.com/article/15947/stakeholder-vs-shareholder-wfu/
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