Stakeholder and Management: National Paint - Coursework Example

Name of the student] [Name of the Institution] [Course] [Date] Stakeholder and Management Abstract The National Paint is one of the largest paints and coating producing companies in the world. As a dominant company as far as production of the paints and coating is concerned, the company is rated as the largest paint producer in the Middle East, with an average production of approximately over 400 liters every year. The quality of its productions have been the secret advantage of this company over many other paint producing companies in this region, and this has made the company to expand its branches all over the world. In particular, the National Paint company in UAE has been considered the largest in the Middle East and the Arab world in terms of its production of paints an related products. The National Paint Company in UAE has a mission of excellence in the process of manufacturing liquid and powdered paints and other rated products, given the improved technology. In this case, the company’s stronghold as far as this mission is concerned is the production of high quality specifications as a result of the adoption of the improved industrial technology that is capable of producing the customerized sizes, dimensions and other specifications that meets the expectations of the customers. The vision of the company is based on making the company’s industrial, commercial and service products be the best, more distinct and more preferred by all customers. Introduction The purpose of this report is to discuss the National Paint’s stakeholders in an extensive way that relates to their involvement in which they operates. More than that, the paper will seek to address the contributions and the types of the stakeholders associated with the company in order to come up reliable information that can be used a base for future knowledge. The study will thereafter come up with an informed conclusion based on the finding of the report that can be used for research studies in the related field. Discussion One of the main goals of every firm or company is to that the stakeholders’ benefits are maximized and particularly some specific stakeholders of that firm like the financial stakeholders. They are considered the most crucial organ of the firm without whom the operations of the firm may be at abnormal risks (Roth, 1999). Moreover, they affect the management strategies of the company to change in one way or another because the affect the company in varied ways depending on their functions in the market. The Freeman’s stakeholder theory relates strategic management techniques of a company to ensure maximum corporation, excellence, maximum production and harmony in the operations of the company. The company must have a diversified view of strategy they employ in their management in the sense that the company depends on its resources and its market as well. In this case, a firm operates in the presence of shareholders and stockholders on whom the firm is attached to directly. However, the theory states that there are other parties who are also either directly or indirectly are involved with the operations of the firm. They include the government agents, the trade unions, the community, the financiers, suppliers, employees, customers, the political groups, trade associations and the competitors. All these groups make the management strategies be focused into the market and the resources as well as the environment. Just as mentioned above, the National Paints Company also operates under a proper relationship with the stakeholders, some of which are basically forming the environmental factors of the operations of the firm. The company has both the secondary and the primary stakeholders. They affect the operations of the company or the operations of the company can affect them in one way or the other. In this case, the primary stakeholders include the internal stakeholders who mostly engage with the company’s economic transactions in frequent manner. They can affect the operations of the company from the internal perspective. This study looked into the prospects of the UAE’s National Paints firm and analyses the primary stakeholders of the company. The company’s stockholders, the employees, the investors, suppliers of the materials needed for the company’s products, the creditors and the customers are some of the internal (primary) stakeholders of the company. On the other hand, the company’s secondary stakeholders, which are also the external stakeholders who in most cases affect the company or are affected by the company from the external scenes, were also established. The study realized that these secondary stakeholders, in as much they are not directly involved with the day today economic activities, they affect or are affected by the actions of the company. They were determined to include the general public (community), the media, the government the, trade unions, business support groups as well as the competitors and many others. For the purposes of the research, the study discussed three major stakeholders of the National Paints Company, looking into their contribution and effects to the company, and how the company also affects them. The following analysis discusses the findings: i. Employees As a primary stakeholder, the basic concerns of the employees of every company are among others the rates of pay, the respect they accord and accorded to them as well as job security. More than that, they employees may be interested in the compensational issues in regards to their firm. On the other hand, the company expects the ultimate truthfulness in terms of communication from the employees, good if not perfect representation of the company wherever they are involved with the transactions concerning the company. The National Paint is no exceptions since it have well organized employee relationship. The company has over ten thousand employees in the various factories of the company in United Arabs Emirates, both the skilled and semi-skilled manpower. Their good relationship with the company reflects the company’s increased productions over the years, and the quality of the paints and related products too speak a lot about their contribution to the company’s reputation. In addition, the company has been at the focal point in terms of better payments as well as good management of their compensation issues (Roth, 1999). ii. The customers As a primary stakeholder too, the customer base of every market forms the basis of competition with other firms in the industry through value and quality productions, marketing strategies and management among other survival ways of the firm in the market. The National Paint controls this industry in the Middle East, by producing over 400 liters yearly. This production has been steady and shows that the company controls a big market share that reflects the portion of customers. The major concerns of the customers are the quality, price, customer care and production of ethical products. The above attributes have been the core mission of the company as far as serving the customer is concerned. The continual brand loyalty among the customer, reflected by the volume of sales, shows the attempts to achieve this mission. The customers provide an ample market for the company’s products and ensure the company is kept business through demand. It is also important to note that the customers also play a role in rating the company’s reputation by generally rating the products of the company. This has also enabled the National Paint to flourish in this industry because of the huge customer ratings. iii. The community (general public) As a secondary stakeholder, the general public forms one of the external environmental factors that are either affected or affect the company in various ways. The expectation of the general public has been based on the job creations, protection of the environment, and involvement in other related activities among others. The National Paint is one of the biggest employers in the region and always works hard to join hands in protecting the environment. Moreover, the company’s agenda is to use materials or consume materials which are environmental friendly. In any case otherwise, the company’s social responsibility has been well designed to take accountability of its products to the environment. The company also has been involving the community in related issues in regard to the near regions and has been crucial in infrastructural development in the region too ( Roth, 1999). Management principles According to Heizer and Render (2004), the following are the seven principles of stakeholder management of every firm; 1. The manager should supervise and acknowledge the concerns of the stakeholders of the company all of them without discriminating any of them by being keen on their interests and advice as far as decision making is concerned. 2. The manager should be communicatively open for the stakeholders concerns and contributions. This includes even the risks that the stakeholders may take by involving itself with the company. 3. Managers should also adopt processes and modes of behavior that are sensitively address the concerns of the stakeholders. 4. Managers should recognize the independent effort of the stakeholder for the company. 5. Managers should also work in a cooperative manner with other firms to reduce cooperate risks arising from cooperate activities. 6. Managers should avoid activities that interfere with the rights of the humanity. 7. Managers should identify any conflict that might arise in the industry and should address the conflict through an open management schemes. Conclusion The study realized that the National Paint Company has been, despite playing a leading role in paint and related products production, a big contributor to the general welfare to the industry as whole and to the management of its operations. References: Heizer, J. H., & Render, B. (2004). Principles of operations management (5th ed.). Upper Saddle River, N.J.: Pearson/Prentice Hall. Roth, J. A. (1999). The social reporting report: "a company doesn't operate in a vacuum". London: Sustainability. Read More