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Stakeholder Analysis
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Stakeholder Analysis

In this, today’s highly competitive and ever-changing business world employee retention is the

major concern for many organizations. Employees are the assets of the organization and retaining

them will give the organization competitive advantages and sustainability in the modern business

environment. Rewards are given to the employees with the aim of increasing the productivity of

their as well motivate them to work more enthusiastically to achieve the goal of the organization.

The problem here is that in spite of having a strong reward program in place the employee

performance of Tesco is declining.

Stakeholders are those who are impacted by the activities of an organization directly or indirectly.

In Figure 1.1 below, the stakeholders of Tesco have been categorized into different categories who

are impacted by this particular problem being addressed.

The employees and the board members are the two groups of operational stakeholders concerned

with the current issue. The broad members are considered to be the leaders of the organization who

formulate goals, objectives, strategies, and tactics. Employees are the ones who are required to

finally execute those plans made by the leaders of the organization. So, poor employee

performance makes it very difficult for the organization to achieves its goals. The customers are

the ultimate service users of the organization and if they receive a bad service they need to find

better service somewhere else.

Competitors are also impacted by the actions of the organization, however, if the employee

performance of the organization is bad it is good for them.

Figure 1.1:
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Predisposition
Title or Group Role Support Influence

- 0 + ++
Board Members Formulating goals,
objectives, strategies
and tactics ✓ Positive Positive
Employees Executing the plan
provided by leadership ✓ Positive Positive
Customers Receiving service
✓ Neutral Neutral
Competitors Competing with the
organization ✓ Negative Negative

The board members and the employees are expected to be supportive of the solution of the problem

as it directly concerns them. The broad members are the main financial beneficiaries of the

organization so it is in their very best interest to solve the problem. Employees of the organization

are also expected to be supportive as improving their performance would be helpful for their career

and financial condition. However, every organization development faces some resistance from the

people involved so there might be some reluctance. Given the topic and kind of changes to be

made, the reluctance is expected to be very minimum. Competitors, on the other hand, do not have

any say on this and improved employee performance of the organization is in direct opposite of

their interest. The customer would be supportive though they will not have any influence over the

plan.

In the next figure, the anticipated reaction of the stakeholders regarding the project has

been listed. The board member is the ones who will be most befitted with an enhanced employee

performance so there is anticipated as widely positive. This helps to make their organization

superior in the market place, establish a competitive advantage and improve their market share.
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Both the financial and non-financial status of the organization is expected to be improved so there

is no reason for them to be unhappy.

Employees would also be happy as it helps to improve their performance which will definitely

lead to a better life. However, they might have to work extra hours or attend training and seminars

to make these changes happen. This might be something that they won’t welcome very

enthusiastically.

Customers will not have any influence or they won’t have to do anything here. They will only

receive an enhanced service if everything goes well. So they will be happy.

Competitors, on the other hand, will not be rejoiced about one of their competitors is doing well.

However, they also are powerless here.

Figure 1.2:

Title or Group Role Anticipated Reaction and Issues

Board Members Formulating goals, Every positive and supportive

objectives, strategies
and tactics
Employees Executing the plan Mostly positive but slightly resistant
provided by leadership
Customers Receiving service Positive as they will able to receive better service
Competitors Competing with the Negative as they will have to face tougher
organization competition

The employee is the ones who need to be most involved in the situation as it is their

performance that is the main concern here. They will need to undergo training sessions,

performance appraisals and other programs to improve their performance. This likely that they

would resist some changes but it is the job of the board members to implement the changes in a
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way that it makes the employees realize that the programs will be very helpful for them. These are

the two stakeholders who will be actively involved with the program. Both of these groups can

profit from the program, however, as the performance of employees will be under the microscope

they would be slightly less motivated.

Customers would hold a neutral position. They will be just happy to receive good service or else

they can switch.

Competitors will have a negative reaction and again their involvement would be none.

Figure 1.3

Title or Group Role Motivation, Drivers, Expectations of Exchange

Board Members Formulating goals, Enhanced organizational performance, financial and

objectives, strategies non-financial gain
and tactics
Employees Executing the plan Improved performance would result in a better
provided by leadership career and a better life
Customers Receiving service Recipient of better service
Competitors Competing with the No motivation, they wouldn’t want something like
organization this to happen

The board members and the leadership of the organization need to formulate and propose the

changes. They will be the one to get involved at the very beginning. According to the plan, they

propose the whole thing would unfold. Once they are have made the plans the employees will get

involved and execute the plan.

Customers and competitors do not get involved. They will be impacted only after the changes have

been made.
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Figure 1.4:

When does this stakeholder need to be involved

Title or Group Role
in the change effort?

Board Members Formulating goals, At the beginning

objectives, strategies
and tactics
Employees Executing the plan Once the leadership has done with their plans
provided by leadership
Customers Receiving service Never
Competitors Competing with the Never
organization

The leaders and the board members will be in charge of lay out the full planning that includes

briefing the managers and supervisors about their duties and responsibilities. Once they are briefed

the employees will be engaged and the plan will be started. Customers and competitors will not

have any role.

Figure 1.4:

Stakeholder Management
Title or Group Role Who Delivers
Activities

Board Members Formulating goals, Planning CEO

objectives, strategies
and tactics
Employees Executing the plan Executing the plan Managers and
provided by leadership supervisors
Customers Receiving service N/A N/A
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Competitors Competing with the N/A N/A

organization

Board members are going to have positive support and a high influence as they are in

charge of the whole situation. Employees will have positive support however their influence will

be low as they will only be obeying orders. Customers will have positive support but low or no

influence. Competitors will have negative support but no influence.