Detailed Analysis of Woolworth's Internal and External Stakeholders

This report provides a comprehensive analysis of Woolworth's internal and external stakeholders. It identifies key functional areas within the company, including supermarkets, consumer electronics, and petrol, and outlines the roles of various stakeholders such as employees, customers, suppliers, and government. The report delves into the degrees of interest and potential conflicts among stakeholders, examining the economic, health-related, and business community concerns. It also assesses the level of influence each stakeholder group exerts on the business, utilizing a stakeholder matrix to map these relationships effectively. The analysis considers the impact of media, shareholders, employees, and consumers, along with government regulations, on Woolworth's operations and financial aspects. The report concludes by summarizing the key findings and implications of stakeholder dynamics within the retail giant.

1
Internal and External Stakeholder Analysis

2
Executive summary
 In this report, there is the analysis which is performed for the internal as well as the external
shareholders of the company. The Woolworth has been chosen for the undertaking of
analysis.
 All the internal, as well as external stakeholders which are involved in the business, have
been identified and all the description is provided in the report. With that, there was the
determination of the core functional areas of business also that is made.
 The roles which are played by all the stakeholders in the company have also been identified
and by that proper understanding is gained. The interest which is involved in the business is
also identified.
 There are certain conflicting interests and in that, all the implications which will be made by
them have been identified. There will be a negative influence which is made due to them.
 The level at which influence will be made by them on the business has been taken into
account and proper information is provided for the same.
 The stakeholders’ matrix has been prepared which has helped in carrying out the analysis in a
more effective manner.

3
Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Functional areas...............................................................................................................................4
Stakeholders and their roles.............................................................................................................5
Degree of interest in stakeholder's interest and implication of conflicting interest.........................6
Level of influence of stakeholders...................................................................................................7
Stakeholder’s matrix........................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

4
Introduction
In the retail industry, there are several companies which are operating and most successful
among them is Woolworth. The company is operating through many stores which are opened all
over the countries in Australia and New Zealand. There is the involvement of various parties in
the undertaking of the different processes in the company. The company provides maximum
employment and there are around 180000 people who are employed by it. There are several
parties whether they are internal or external with whom the relations are maintained by the
company and they all have some interest in the business. They all are stakeholders and it is
required that their analysis shall be done. The same will be represented in the report in which all
the stakeholders will be determined together with their roles. All the necessary information will
be taken into account and the analysis will be performed effectively for Woolworth.
Functional areas
Every business which is established operates in various areas and in that there are various areas
in which functions are carried out. Woolworth is the big retain brand and is carrying out the
operations in various departments by which it can satisfy the majority of the consumers and
provide them with the required services (Woolworth, 2018). It is operating in the retail industry
and in that various functions are performed in several areas which cover hotels, supermarkets,
consumer electronics, liquor, discount departmental stores, and petrol.
They all are the main areas in which performance is made and by the undertaking of the
functions the company can provide many people with the required employment. The rate of
employment has increased with this and is adding to the value of the business as well as
economy. The company performs are the required functions effectively with the availability of
appropriate staff and they all are covered in the internal process of the business (Calvo &
D’Amato, 2015).
Among all the areas which are covered by the company the most important is the supermarket
business as it brings a huge amount of sales from all across the countries. There are various
policies and rules which are followed by the company and with the help of them, it can perform
the actions in the best possible manner.

5
Stakeholders and their roles
In the company, there are various members and other parties who have an interest in the business
and all of them are categorized as the stakeholders. With all the decisions that are taken by the
company, they will be affected greatly. In the company, there are several stakeholders and it is
required that they shall be identified so that actions can be taken in a manner which will be
fulfilling their interests and fewer conflicts are raised (Woolworth, 2018). The main stakeholders
who are involved in the Woolworth are its employees, suppliers, customers, government and
shareholders. There are many others also in addition to the internal ones and they are identified
as the external stakeholders. In that union, community, NGO and media are included.
All of them play a certain role in the business and it shall be analyzed appropriately.
 The customers are the main stakeholders and they affect the business as they are the ones
who purchase the products of the company and make it successful.
 Employees perform all the operations in the manner which is preferable by all and deliver
the best services. They are skilled and with the use of that, there is the production which
is made as per the requirements of the consumers.
 There is the requirement of various material and other things to carry out the production
and to perform the operations and all of that is done with the help of suppliers
(Woolworth, 2017). They supply all the requirements which ensure that no issues are
faced.
 The community also plays an important role in the business as they are the ones who are
hired by the company and also gets affected by all the decisions which are taken in the
business. In return of the services, there is great support which is obtained from the
community.
 The government collects the taxes from the business bit also makes certain rules which
are beneficial for the business and the whole community. There are eco-friendly steps
which are taken and by that complete environment are saved from some hazardous
activities.

6
 Shareholders are also the stakeholders of the company and they also play an important
role in the business (Bal et al., 2013). They invest the amount in the company which is
used by the business for various purposes.
 The main capital source is the debt funders and they are also identified as the
stakeholders. Their role is to assure financial security by providing the required funds.
Company will be able to meet all the objectives effectively together with the management
of the risk involved.
Degree of interest in stakeholder's interest and implication of conflicting interest
All the stakeholders have some of the other interest in the business and it is necessary that there
shall be a proper analysis of the same. The level of the interest will have to be ascertained so that
the services can be provided to them in the required manner. The main among all are identified
and described below in detail.
 Some of the stakeholders have an economic concern and they required that work shall be
carried in such a manner that it is favorable for them. Government has a high interest in the
company as it will be collecting the taxes accordingly and will also be making the rules and
regulations effectively.
 The health-related concerns are also involved as retail industry supplies various products. All
the associations which are involved in the business have an interest in all these issues
(Woolworth, 2018). They focus on the fact that all the health-related policies are followed
effectively so that society can be benefitted.
 The business communities which are involved have high interest and they take all the steps in
such a way that business will receive advantage as the same will finally be received by them
only. They provide more workers as that will raise the productivity of the business and
profitability will be enhanced with the same. It makes all the efforts to attain the benefit of
the success of the business. Only those efforts will be made in which no cost or regulations
are covered as they create a burden on the communities.
 Funders of the company are also interested in the earnings of the business as that is the return
which is earned on the amount contributed by them. The company attains funds from them
and uses them to carry the functions of the business. It is required to pay the interest to the

7
funders and that makes the funders interested in the income of the company as they will
receive the amount only when the company makes profits.
 Employees receive a salary from the company and are interested in the benefits of the
company. They work with full potential to increase productivity as higher profits will
increase their chances to earn the bonus from the business.
All the stakeholders have a certain amount of interest in the business and in a certain situation,
there is a conflict which arises among the interest of the company or stakeholder's interest. There
are issues among various stakeholders also and it is required that they all shall be dealt with
effectively as they affect the outcomes of the business adversely. With the conflicting interest, it
becomes difficult to determine the actions and interests which shall be kept on priority. The
dissatisfaction will be raised if the interest will not be attained by them and that will affect the
overall performance of the company in the current and forthcoming period (Laczniak & Murphy,
2012). The policies are involved by which the only one is benefitted and so they will have to be
revised in such a manner that all of them are satisfied. The overall results and success which is to
be acquired will be affected negatively and so proper steps will have to be taken to deal with
such situations.
Level of influence of stakeholders
Stakeholders are an essential part of any organization and they have a substantial influence on
the business. There are different manners in which influence is made and the proper control shall
be established for the same so that no negative influence is made. Some of them affect the
business in a higher manner than others and the same can be understood with the diagram
provided.

8
Figure 1 Influence of stakeholders
(Source: Ctb, 2018)
The diagram shows the relation between the influence and the level of interest of stakeholders.
There are certain who have high influence but have low interest and they are identified as latent.
The ones with high influence and high interest are promoters and if they have low interest and
also influence is at a lower level then they are known to be apathetic. High interest but the low
influence will be for the defenders (Driessen & Hillebrand, 2013). It is required that they shall be
identified so that steps and measures can be taken accordingly. In Woolworth, there are various
stakeholders and this mapping is essential for them.
Media has low interest in the business but it influences greatly and so is known as the latent.
They require all the information and present the same in different manner which affects the
business in many ways. Shareholders and funders have high interest and they also influence in a
high manner as they provide the funds to the company. To carry the operations in an effective
manner their support is highly required. Employees also affect the business as they are the ones
performing all the operations and if they are not working appropriately then negative results will

9
be achieved. They also have an interest as if the business will earn then only will be able to pay
them the required amount (Manetti & Toccafondi, 2012). Consumers have a great influence on
the business as the profitability depends on them. If the demand is high then this will be
increasing the sales of the company thereby increasing the profits which is a positive impact. The
government makes a large influence on the company with the rules and regulations that are
imposed by it. Company is required to follow them and that affect the activities as well as the
financial aspects of the business.
Stakeholder’s matrix
A stakeholder's matrix is the representation of all the information about the stakeholders in a
tabular manner. This helps in having all the data at one place and in a summarized manner. It
will be used for the making of proper analysis and then decisions can be made effectively with
the help of it (Obeng, 2019). It is required that the same shall be developed properly as in that all
the aspects important for business as well as stakeholders are identified. By the use of this, there
will be making of the proper policies and procedures which will help in the attainment of
requirements that are identified in the matrix.
Stakeholders Interest Influence Needs and Expectations
Employees Rewards and
recognition
High  Training and
development
 Employee wellness
 Good business journey
Customers Product and
services choice
High  Best quality products
 Innovative service and
products
Suppliers Payment High  Timely payment

10
 Product offers
Media Product
information
Medium  Determining retail
issues
 Good business journey
Government Policy
development
High  Employment equity
 Social development
and education
 Food standards and
safety
Unions Wages Medium  Appropriate
employment
conditions
 Better response to
issues
The matrix shows all the stakeholders and their interests, needs, and influence. They are
determined and this is concerning the Woolworth which is operating in the retail sector.
Employees expect that they will be provided with the training and development so that the best
products will be made by them. This will also be beneficial for the business as there will be an
enhancement of productivity (Klindzic et al., 2016). They will also be requiring that the
company thinks about the wellness of the employees of the company so that they are motivated.
Suppliers provide the company with the required material that is used to carry the required
operations and they charge an amount for the same. They require that all their payments shall be
made on time and also there shall be certain offers which are accepted to increase the sales.
Media is interested in the information about the company and the products which are offered by

11
it. There will be a presentation of the information and for that, they require that all the data shall
be provided to them. They expect that their journey with the business remains good so that it can
continue for the long. The customer wants that they shall be provided with the best quality of the
products and services. There shall be innovations which shall be involved in the products which
differentiate them from the ones which are already present (Hillebrand et al., 2015). This will
help the company in attracting more customers. Government is required to make the policies and
regulations for the company and they shall be made in such a manner that all should benefit from
them. Unions are involved in such activities by which the overall wage conditions of the labors
will be improved. All the issues which are being faced will be identified and resolved effectively.
In addition to this, there are some social supermarkets also and the main purpose of them is to
provide the products to a particular segment of society. In those stakeholders that are involved
are different such as non-government organizations, donors and various others. The main
purpose of them is to provide the society with the benefits and undertake the social developments
(Bondy et al., 2012). They will be dealing with poor people who are not able to have their
requirements fulfilled. Both the industries have different aims as the retail industry work for
profit maximization whereas social organizations work for the welfare of people.
Conclusion
The report has elucidated about all the aspects which are involved in the internal and external
stakeholder’s analysis. The same has been conducted and in that all the important stakeholders
which are involved in the Woolworth have been identified. It is determined that all of them have
some interest in the business and that has been taken into consideration. Due to this only they are
involved with the company and influence the operations and other areas. The main areas in
which functions are carried in the company have been identified and described appropriately.
The degree of interest is determined and with that, the influence which is made by them on the
company is also taken into account. There are several conflicting interests which are involved
and they have been identified with the implication that will be made. There site stakeholders'
matrix which is prepared and with that, all the information is provided at a single location. The
comparison with other industry is also made and in that, all the differences have been identified.

12
References
Bal, M., Bryde, D., Fearon, D., & Ochieng, E. (2013). Stakeholder engagement: Achieving
sustainability in the construction sector. Sustainability, 5(2), 695-710.
Bondy, K., Moon, J., & Matten, D. (2012). An institution of corporate social responsibility
(CSR) in multi-national corporations (MNCs): Form and implications. Journal of business
ethics, 111(2), 281-299.
Calvo, R., & D’Amato, R. (2015). A collaborative method of enhancing internships evaluation
through stakeholders’ alignment. Procedia Engineering, 132, 167-174.
Ctb. (2018). Identifying and Analyzing Stakeholders and Their Interests. Retrieved from:
https://ctb.ku.edu/en/table-of-contents/participation/encouraging-involvement/identify-
stakeholders/main [Accessed 26 July 2019]
Driessen, P. H., & Hillebrand, B. (2013). Integrating multiple stakeholder issues in new product
development: an exploration. Journal of Product Innovation Management, 30(2), 364-379.
Hillebrand, B., Driessen, P. H., & Koll, O. (2015). Stakeholder marketing: theoretical
foundations and required capabilities. Journal of the Academy of Marketing Science, 43(4), 411-
428.
Klindzic, M., Knezevic, B., & Maric, I. (2016). Stakeholder analysis of social
supermarkets. Business Excellence, 10(1), 151-166.
Laczniak, G. R., & Murphy, P. E. (2012). Stakeholder theory and marketing: Moving from a
firm-centric to a societal perspective. Journal of Public Policy & Marketing, 31(2), 284-292.
Manetti, G., & Toccafondi, S. (2012). The role of stakeholders in sustainability reporting
assurance. Journal of Business Ethics, 107(3), 363-377.
Obeng, E. (2019). Bullseye: An argument for effectively managing retail stakeholder
relationships. Journal of Retailing and Consumer Services, 49, 327-335.