Stakeholder Analysis in the Event Organisation Context - Literature review Example

Stakeholder Analysis Name Institution Affiliation Date Introduction Stakeholder analysis is the technique of identifying the key people, the stakeholders which need to be won over, in any event or setting. Stakeholder analysis encompasses the process of stakeholder planning to be able to win the potential stakeholders and succeed in one’s stakeholder analysis. Analysing stakeholders is useful in ones business; it requires a professional planning to win the attention of the stakeholders (Bowdin, 2010). There are four steps used to effectively lure a potential stakeholder to one’s organisation. This paper overlooks t the stakeholder analysis while drafting a real life example of stakeholder analysis effectively used to attract potential stakeholders. Stakeholder Analysis in the Event Organisation Context According to FriedmanandMiles (2006), a stakeholder is any party that is simply interested in a certain enterprise or project. The primary stakeholders to any organisation are its usual investors, the employees, the customer the project/ entity serves and lastly the suppliers. However, the modern business analysis places stakeholders as the external forces directly interested in project, such as the other organisations, the community, government or even the trade associations. FriedmanandMiles (2006) assert that many organisations seek to keep labour costs at a tight control, since they are critical inputs to the company revenue collection but yet costly of not well reviewed. It’s easy to keep May stakeholders happy at any organisation, hence many employees end up unsatisfied with the allocations they are getting. The best stakeholder management strategy is to first keep all stakeholders happy, including the employees and the external stakeholders. FriedmanandMiles (2006) ascertain that these parties can be influenced or else influence the success or failure of the organisation since they have a vested interest in the company. In the cases of stakeholder analysis, the internal stakeholders are literally considered since they are directly absorbed and already working g for the company (Friedman & Miles, 2006). The internal stakeholders are in some instances referred to as the primary stakeholders. According to Kimmich (2012), the internal stakeholders are the most dedicated group of stakeholders to the company success. These stakeholders are greatly affected by the success and the decisions, profitability, general performance as well as other organisational activities thereof. No organisation can dare survive without the internal stakeholders (Kimmich, 2012).Similarly, when the internal stakeholders are not performing to their expectations, the company will never reach a greater performance heights. According to Kimmich (2012), the following are the listed groups of the internal stakeholders in any organisation. 1. The employees, to the groups of people who work for the company 2. The company owners, these are the direct owners of the organisation, who can be partners, shareholders etc., 3. The board of directors. These are the people who govern the organisation; they are elected at the annual general meeting or appointed directly by the business owners. 4. The company managers. These are specific people managing specific departments, for instance the sales manager general manager etc. 5. The investors. These are the people who invest the monies in the organisation. Gerber and Plessis (2009) ascertains that the internal stakeholders involves in specific departments are involved in stakeholder analysis, majorly on the external stakeholders. This analysis is meant to attract the external bound stakeholders to the business. However the relationship of fellow internal stakeholder hold s greater key to the extent in which the external stakeholders are bound to be motivated and influenced by the company (Gerber & Plessis, 2009). The competency of the stakeholder analysis conducting by the internal stakeholders determines how the external stakeholders will perceive the business. Gerber and Plessis (2009) asserts that the external stakeholders are those parties interested on the organisation, and are not directly involved in the management of the company, who indirectly affect the performance of the company. These are the outside parties forming part of the business environments. The external stakeholders in some contexts are called the secondary stakeholders (Gerber & Plessis, 2009). These parties are mostly the financial users of the company, since they are interested in knowing the financial capabilities, profitability as well as the liquidity of the company. According to Gerber and Plessis (2009), the external stakeholders in any company do not participate in the day to day activities of any organisation. However, the actions taken by the company greatly influences them. They are dealing with the company from an external perspective. These stakeholders are not concerned; neither does it contribute to the internal affairs of the company (Gerber & Plessis, 2009). Some of the external stakeholders of consideration to most companies are: 1. The suppliers. These are the people providing inputs to the organisation like the raw materials and the equipment’s. 2. The business customers, these are the final consumers of the product the company is making, or the people the company is providing the services to. 3. The creditors. These are the individuals banking organisation or any other entity providing the organisation with the funds. 4. The clients, who are partners to which the company provides the services. 5. The intermediaries, they link the company with its customers or the consumers, e.g. the distributors. 6. The competitors, those organisations competing with the company for specific market. 7. The society in which the company is establishes and uses its sources. 8. The government to which the company adhered to regulations and rules set, like paying of taxes levied to the business. Weiss (2009) asserts that the stakeholder analysis therefore seeks to influence most of these external stakeholders; the relationship between the external and internal stakeholders is highly dependent on the analysis done. Nevertheless, the internal stakeholders are the ones who are determinant on who the external stakeholders would be, and to what extend will they influence the organisation. Risks of Not Conducting a Stakeholder Analysis According to Weiss (2009), many marketing personnel think fail to make efforts in stakeholder analysis assuming that the early project efforts in analysis of the previous company stakeholder analysis has already identified the necessary stakeholders. Every key milestone is critical and hence failure to analyse stakeholders may result to a low stakeholder turn out (Weiss. 2009). For instance the business may lose out its main customers to competitors of the proper stakeholder analysis is not done. According to Brem and Viardot (2015), the failure to invest in stakeholder analysis in any business can make the business lose its goals and scope, due to a low stakeholder turn out. The business can fail to reach its set goals or milestones, make little revenues hence reflect low profits. This can be harmful for any business and if not corrected in advance can result to the closure of the company (Brem& Viardot, 2015). Hence, stakeholder analysis is a critical entire to all businesses Stakeholder Analysis Example A local music event was organised by a global event-organisers, the rock and roll concert makers. The firm wanted some local firm collaborators and some event organisers to help them to get down with the real event. The firm needed local marketers as well to keep their name high, to make their roc and roll concert name gain a higher influence in the local small town it was hosting the event. The event was mapped with several local artists, using the platforms promotion to their music. Several local corporate were expected to improve as the co-sponsors of the event. The main event organisers for the rock and roll needed a complete know of the local town so as to know who to entertain, similarly, the local brands wanted to as well have their stakeholder analysis., moistly seeking to increase the local market share has been having, by luring more customers in it, suppliers were similarly a target group for many brands. There was one brand, a local beverage company. The company provides the energy drinks for sportsmen a, beverages as well as non-alcoholic drinks. The company wanted to lure more customers, shareholders as well as other interested stakeholders willing to invest in the company. This was the climax of the event as the marketing tem from the company designed the banners portraying the new drinks in the market for the company., many customers were influenced by the move while many ,ore investors were motivated o invest in the beverages company/. Conclusion Stakeholder analysis is the process designed by the marketing group of a company to gain more stakeholders. The stakeholders majorly targeted in this analysis are the external stakeholders. Similarly, some internal stakeholders may be targeted to add a more expertise in the inner affairs of the corporate. The stakeholders majorly on targets in any event involving a stakeholder mapping and analysis is inclusive of the addition of the customer base of the company, the suppliers, appease of more shareholders to add into more capital for the form and lastly the investors who possibly make the form more successful in investment. References Bowdin, G. (2010). Events management. Oxford: Butterworth-Heinemann Brem, A. & Viardot, E. (2015). Adoption of innovation: balancing internal and external stakeholders in the marketing of innovation. Cham: Springer. Friedman, A. & Miles, S. (2006). Stakeholder’s theory and practice. Oxford: Oxford University Press Gerber, K. & Plessis, N. (2009). Marketing communication. Cape Town: Pearson Education South Africa. Kimmich, C. (2012). Methods for stakeholder analysis. Place of publication not identified: Europ Ischer Hochschulver. Weiss, J. (2009). Business ethics: a stakeholder and issues management approach with cases. Mason, OH: South-Western Cengage Learning Read More