Stakeholder Analysis at Trade Aid Company - Case Study Example

Stakeholders Analysis Name Institution Date Stakeholder Analysis The analysis of the company stakeholder reveals the different parties that are engaged in the running of business at Trade Aid Company. Trade Aid company grow from a charitable institution to what it is presentable. Professionalism was introduced in the company slowly by slowly to the level of competing with other international retailers. Stakeholders are involved in the different aspects that affect the running business of the company. 1. Stakeholder’s Analysis Stakeholders Effects of the company on social, political, and economic terms Perceptions of stakeholder of the effects Religious agencies Supported and helped informed the initial growth and founding of the company. Helped the welfare of the society Board members Directed the implementation of company’s policies. Influenced the strategic development of the company. Consumers The company produced goods that met the needs of consumers. Contribute to the growth of the business market share. Agricultural cooperatives Contributed to the supply of goods. Charitable activities lead to development of society Volunteers Donated labor in the retail shops, the community trust, various committees, and the warehouse. Participated in the social welfare of the group. Family groups The company involves them in social development affair. The company contributes to the welfare of the society Supplier groups They offer a market for the products of the company. They participated in setting the price of products, and the company was contemplating giving them ownership rights. They contribute to the growth of business of the company by buying its products. Would be affected the world recession. Retailers Distribute the products of the company. Participate in the growth of the company Shop committee Helped in the distribution of goods of the company Help in regulation of retail trade Development communities Participate in trade development activities Create a source of livelihood to members Local community Owned retail shops that distributed the goods from the company. Supported fair trade. Earn a living through selling the company’s goods 2. Values analysis The dominant organizational values Trade Aid has a mission of building sustainable and just communities by means of fair trade. The fair trade annual event was created with the purpose educating the public concerning social justice and fair trade. The company believes in participating in the general welfare of the society. Supplier groups are being concerned towards ownership stake of the company. The company grew out of importing of goods that are handcrafted from Tibetans and other groups which were economically disadvantaged. The goods were initially made by refuges and sold in New Zealand. The company upgraded the various groups’ products in to retail market of high value in New Zealand. The company believes in sustainable growth through fair trade. There is no chance of the company taking advantage of the society or its customers. Stakeholders are involved in the running of affairs of the company (Waddell, 2000). Values of the key board members and executives The board members and key executive members believe in professionalism and adding value to the society. The handcrafted goods shops had Corso signs on their doors. Annual conferences organized by the leaders persuaded the people to drop the sign and Trade Aid was adopted. The leaders steered the organization a simple begging of individual shops to a reputable corporation. Trade Aid took over many shops and eventually established itself as an entity that is separate other charitable organization and Corso. In the 1990s the company was facing major losses and stagnation. The board made a decision of professionalizing the organization for its survival. The members of the board took the first step of implementation of franchise agreements among all Trade Aid shops. Franchise agreements stipulated that the shops were to be called Trade Aid shops and should only sell products which are supplied by trade Air. Key stakeholders’ values The various stake holders actively take part in the growth of Trade Aid Company. Key stake holders have also gained a lot from the growth of the company. The local community has benefited from creation amenities like schools and healthcare facilities. The suppliers and retailers are involved in the growth and distribution of the products of the company. Religious agencies are committed to ensuring equity is achieved within the society. The shop committee and development committee are involved in regulation of the trading to avoid businesses taking advantage of consumers. Agricultural cooperatives and family groups take part in the distribution of the goods of the company. The groups are also involves in the welfare of the society. Each stakeholder has a role to play to the betterment of the company and welfare of the society. 3. Societal Issues Major issues facing society over the next 10 years The company is going through a difficult time owing to the economic crisis that has been experienced allover the world. The economic melt down will affect the strategic plan of the company of increasing its growth. The growth of international trade between Australia and New Zealand creates a life time opportunity for advancement of Trade Aid expansion strategy. From 2006 to 2007 international trade in New Zealand grew by 59%. This growth provides an opportunity for advancement of the company’s business. Trade partnership will assist Trade Aid to gain entry into to some markets. Increasing competition from other retailers of tea and coffee like Dilmah, Starbucks, and MacDonald’s makes development of international trade challenging. Consumers demanded increasingly natural products and organic products which helped to expand Trade Aid organic line of products. Changing global trends affected the growth of business of Trade Aid. The consumers also show interest in ethical commitment of businesses. The company has to look for way of increasing its market share despite the increased competition (May, Cheney & Roper, 2007). The changing trends in the consumer’s trade towards organic and natural products require the company to increase the production of such products. The company has to increase its market share despite increased competition and the economic crisis. Promotional activities and other involvement that will lead to expanding of the business have to be put in place (Maignan, Ferrell & Tomas, 1999). Changes in technology require that the company invest heavily in new technologies to stay ahead of competitors. The company has to respond to increase of consumer interest in business ethical consideration. Participation of the company in societal activities will lift its image in the society. Effects of these values on organization and stakeholders The organization has to meet the needs of consumers and observe the trading principles outlined by regulation agency. Increased competition requires adaptation of formidable strategic plans. Consumers require increased accountability and quality products from the company. Increased customer awareness requires that the company has to be more vigilant and aggressive in solving any issues concerning consumers (Sankar, Bhattacharya, & Korschun, 2006). The welfare of the society has to be considered in the development plan of the company without neglecting financial goals. Buyers have also to brace themselves for increased prices to poor economic conditions. 4. Enterprise Strategy The best strategy to be applied by this Trade Air is the utilitarian strategy. This strategy is whereby the company tries as much as possible to improve the society’s quality of life. Actions are implemented by the organization with the aim of raising the general welfare of the society. Managers within the organization believe that the company has effects of varying impact to groups of stakeholders that surrounds it (Zerk, 2006). The objective of the organization is to come up with the greatest good for many society members. Normally business is basically a social institution and therefore takes up obligations that have to be discharged through looking for ways to realize social good. The company responds to social issues and gets involved in the tackling of the issues. Managers maximize the social welfare. In the case of Trade Aid, there is a huge range of social issues affecting operation of the company. The company has to use the utilitarian strategy in meeting its strategic goals. There are many obligations that the company is committed to the welfare of the society. The utilitarian strategy will help the Trade Aid to advance its business policies and realize growth in the customer base. The company has to balance between social mission and business principles. The company imported products from economically disadvantaged groups in over 50 different countries. The company feared that its financial sustainability mission did not overshadow the social mission. The company is very concerned of the welfare of the society. Authenticity of Trade Aid in social mission had given it a right of using the Fair Trade Organization. The involvement of the company in the social issues contributed to its growth. Trade Aid owes its growth from the development of charitable activities to disadvantaged families. References May, S., Cheney G., & Roper, J. (2007). The Debate over Corporate Social Responsibility. Oxford, England; New York, NY: Oxford University Press. Zerk, J.A. (2006). Multinationals and Corporate Social Responsibility: Limitations and Opportunities in International Law. Cambridge, UK: Cambridge University Press. Sankar, S., Bhattacharya, C. B. & Korschun, D. (2006). The Role of Corporate Social Responsibility in Strengthening Multiple Stakeholder Relationships: A Field Experiment." Journal of the Academy of Marketing Science, 34 (2), 158-66. Maignan, I., Ferrell, O. & Tomas, G. (1999). Corporate Citizenship: Cultural Antecedents and Business Benefits. Journal of the Academy of Marketing Science 27 (4): 455–469. Waddell, S. (2000). New institutions for the practice of corporate citizenship: Historical Intersectoral, and Developmental Perspectives. Business and Society Review 105: 323–345. Read More