UNIVERSITY OF CENTRAL PUNJAB

SUBJECT: ADVANCE PERFORMANCE MANAGEMENT

NAME: MUHAMMAD ZESHAN

REG # L1S18MPAF0025
DATE: 04-04-2018

TEACHER: DR. MUHMMAD AHMAD

TOPIC:
E Company Stakeholder Analysis and Advantage of
Stakeholder Analysis

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Advantage to E Company for conducting a stakeholder analysis of its operation in Country F

1) E is a multinational organization and has a number of interested stakeholders group.

Therefore, it would benefit the board of Directors to understand the power of each
stakeholder group.
2) Stakeholder analysis will benefit E Company to understand that which stakeholder
group would be against Company E in respect of imposing extra tariff on cocoa beans
and build a new manufacturing factory. Stakeholder analysis will also provide
information that how to satisfy other stakeholders to support E Company.
3) This analysis will also help to determine the power and interest of the various
stakeholders groups so that It can decide on the appropriate actions, such as to
accommodate, negotiate, manipulate or resist the interest of various stakeholders.
4) Further this analysis will support those stakeholders who are in favor of E Company to
convince those stakeholders who are against the E Company. The Local formers, Farm
workers, E Company Employees, F Country Govt and Local Community who are getting
benefits from hospital, school and cooperation. Therefore, E Company should look these
stakeholders in favor to use it with National Labour Union, Govt Opposition Party and
with Govt.

Produce a stakeholder analysis for E Company for operation in Country F.

Following are the stakeholders:

1) Board of Directors
2) E Company Management
3) OECD (Organization for Economic Cooperation and Development)
4) Local Formers
5) Farm Workers
6) E Company Employees
7) F Country Govt
8) F Country Opposition of Govt
9) National Labour Union
10) E Company Competitors

LEVEL OF INTEREST
LOW HIGH
POWER A=Minimal Efforts B=Keep Informed
(i) The farmers, (ii) The farm workers
LOW (i) OECD (iii) E Company Workers, (iv) E Company Competitors

C=Keep Satisfied D=Key Players

HIGH (i) F Country Govt (i) Govt Opposition Party, (ii) National Labour Union
(ii) Management of E (iii) E Company Board of Director

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High Power and High Interest (Key Players)

 E Company Board of Directors are powerful stakeholders and they have high level of
interest and they have strong loyalties to their business so they are powerful for
making decision.
 The Govt Opposition Party is an anti-business party and they want all foreigner
companies should be removed and they giving very tough time to Govt and current
Govt is under pressure so due to this the Opposition party indirectly comes in high
power with high interest of Anti-Business. Further National Labour Union also
supporting to Opposition Party which is also one factor of increasing power
Opposition party.
 The National Labour Union is against the Cooperation which are running by the E
Company as per guide line of Organization for Economic Cooperation and
Development. This is because Farmers are becoming more powerful and they can
give tough time to National Labour Union in their area.

High Power and Low Interest (Keep Satisfied)

 F Country Govt support to business but due to narrow majority, the Govt is under
pressure and wants to impose extra export tariff. The elections are coming in next
fifteen months due to this Govt is not supporting to F company which indicates low
interest but F Country Govt have power to make any decision which shows high
power.
 The Management of E Company has higher interest to save their employment but
they don’t have power.

Low Power and High Interest (Keep Informed)

 Local Farmers are getting benefits of farming from E Company through corporations
and they are not restricted to sell their crop to any company. The Local Farmers
have higher interest because of Corporations but don’t have power.
 Farm Workers also have higher interest because Local Farmers are using them for
cultivation but they also don’t have power.
 E Company workers have higher interest because if foreign companies removed
then they will become unemployed and if extra tax imposed then cost will increased
and ultimately the wages of workers will be reduced.
 E Company Competitor have higher interest because if foreign companies removed
or extra tax imposed then these two competitor will also suffer loss which indicates
high interest but they don’t have power.

Low Power and Low Interest (Minimal effort)

 The OECD (Organization for Economic Cooperation and Development ) is only

providing guide lines to multination companies so it don’t have any interest on
imposing any extra tax or removing foreign business from Country F and further it
don’t have any power in Country F so it will comes in Minimal Efforts.
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