Ericsson as a Company That Is Globally Supported by Its Shareholders - Case Study Example

Ericsson Stakeholders Name: Affiliate Institution: Ericsson Stakeholders Company Brief Ericsson has remained the most competitive technology and communications mobile provider. The company thrives in providing services, equipment, and software globally enabling general mobility and transformation. About 40 percent of the worldwide mobile traffic depends on their providence to offer interlinked network services. The statistics point out that close to 1 billion users have subscribed to their services around the globe, which they depend on to run their businesses. The company ranks high in portfolios since it has close to 40,000 granted patents, who make the company more strong in the market. Ericsson also owns the most substantial intellectual property rights all over the world. The Ericsson Company has invested in UAE as their major central production center (Khan, Adda & Adams, 2009). The company has the best relations with its stakeholders, and this could be linked to its thriving in global markets over the years as they value them as the primary inputs to their success. Local, Regional, and International Stakeholders Stakeholders are an organization, group, or an individual who has interest and concern for a particular company. The personnel can be affected, as well as can change the daily organization’s policies, actions, and objectives. The stakeholders can be global, regional, or local where each plays the same role to ensure the success and thrive in the selected company: Ericsson. The major categories of stakeholders are owners – the shareholders, community, and creditors – like the Apax Company, government, unions, agencies, directors, suppliers, customers, and employees. Ericsson treats its stakeholders differently as they are not all equal. The customers are an example that they need appropriate trading practices, despite them being stakeholders; they are not ranked at the same level as the company’s employees, who are also an important part of the stakeholders (Khan, Adda & Adams, 2009). The employees diversify throughout the locality, globally, and regional wise. The same applies to all other stakeholders who are critical to the company in all its branches. The stakeholders can be negatively affected the moment a company decides to do a voluntary round layoffs. This impacts the community around the company as well as the local and regional level of the economy. Many employees may lose their place they earn their daily bread; the community lacks the supplier for the currently most wanted product: communication networks and the lack of revenues to the government in the form of tax. For the case of Ericsson, the shareholders are mostly benefited the moment the company releases a new device to the market as there is experienced a stock price increment. However, the company mainly depends on its stakeholders to make a profit. Ericsson has put in place several strategies meant to ensure a constructive relationship between the two entities. Stakeholders Need Analysis The stakeholder’s needs are well met by ensuring that there is effective management that can monitor, maintain, and form a long-term benefiting relationship with the investors by assuring them of success in their accrued investments in Ericsson Company. Ericsson has remained in its race to attain its goals through maintaining their current investors while recruiting new ones. This is achieved by maintaining responsibility and ethical environment to conduct the transactions. The Ericsson has also applied the corporate governance to make sure that they can analyze the overall stakeholders’ needs and to fulfill their roles in the mutual relationship that has now grown stronger. The company must be in a position to conduct a quality analysis for the needs of their stakeholders. This is a procedural and systematic analysis and information collection that is used to prioritize the interest in a bid to select the most important ones (Talib et al., 2012). The stakeholder analysis is vital for all companies for it is used to help the managers and project leaders to be in a position to access their stakeholder’s knowledge, interests, alliances, and positions regarding the company in all its established and starting projects. When doing the analysis, the stakeholders are classified into two categories: External – the trade associations and government, and internal – the management and employees, stakeholders. The vital essence of identifying and analyzing the stakeholder’s interest is to ensure that they are involved in the efforts of doing the project at hand to be successful. There are a string of advantages that are accrued by involving as many as possible stakeholders in their business dealings. Some of the benefits are ensuring fairness for all, more ideas are tabled, and there is gains buy-in experienced, strengthens the company against competitors, and includes community bridging and all sectors inclusion in the process (Ayuso et al., 2006). Ericsson’s Ability Analysis Having discussed the effectiveness of including the stakeholders in the process of materializing a particular project, let us analyze the ability of Ericsson to analyze its stakeholders. Ericsson is a global networking company that requires its customers most as well as the investor and employees. To release a new device that will be warmly accepted worldwide, there should be procedures through which they analyze the market using their stakeholders. Therefore, the company has used several strategies that are ethical to ensure that the stakeholders participate willingly. The company uses a very stringent analysis format that allows the attainment of a substantial and profound final decisions (Khan, Adda & Adams, 2009). Ericsson Company keeps these several steps that are involved in the process of analyzing their stakeholders. Step one is to identify and define their stakeholders at large. The stakeholders range from prospective customers, family members, investors, among others. The second significant step is to identify all the possible effects and the general impact the selected stakeholder can have on the company. The third step is to place the interests of the interested parties and prioritize them to consider whom to pick and the one to ignore. The next step is the identification of the conflicting areas such as the stakeholder versus the management. The second last step is to try and elicit the conflict by balancing the stakeholders to ensure harmony. The final move is to ensure that only the relevant stakeholders are aligned with the company’s strategies. This ensures that the corporation remains ethical and professional as they pursue success (Ghoshal & Bartlett, 1986). Strategies and Ethics Ericsson has ensured that it treats its stakeholders ethically and respects the human health. The privacy of their customers and human rights are vital aspects they value much. They offer products meant to boost the lives of people and the community as a whole. Ethics are the key driver in the human resource department where they employ workers indiscriminately in all their branches including the major one at UAE. The firm starts by respecting the rights of its stakeholders. The freedom of expression is a virtue they always value and never violates it for their selfish gain. This strategy has made them gain popularity against other competitors. However, the government being one of the primary stakeholders tends to restrict the freedom of expression and secrecy especially at times of crisis and terrorist attacks. The other strategy is to maintain a clean environment by producing devices that are ecosystem friendly. This enables them to exercise ethics by releasing devices that do not emit harmful radiations to the environment (Davies, Brady, & Hobday, 2006). Conclusion Ericsson is a company that is globally supported by its shareholders. They have diversified their services by providing the best products worldwide. The network coverage has developed right from 2G, 3G, to 4G, which is the latest. They are prospecting that the 4G network will be distributed globally by about 95% of its clientele. The company has very competitive analysis for their stakeholders to be able to rank them and select the top most interests that spearhead the firm towards success. The organization has six identified steps that allow critical stakeholders analysis, which helps to avoid unfounded decisions. Ericsson Company is a company driven by ethics and gives back to the community by maintaining a clean environment and ecosystem. The firm allows its stakeholders to have a voice and respects their rights and privacy. The organization is hinged on their stakeholders as the main drivers of the company’s productivity. References Ayuso, S., Ángel Rodríguez, M., & Enric Ricart, J. (2006). Using stakeholder dialogue as a source for new ideas: a dynamic capability underlying sustainable innovation. Corporate Governance: The international journal of business in society, 6(4), 475-490. Davies, A., Brady, T., & Hobday, M. (2006). Charting a path toward integrated solutions. MIT Sloan Management Review, 47(3), 39. Ghoshal, S., & Bartlett, C. (1986). Tap your subsidiaries for global reach.Harvard business review, 64(6), 87-94 Khan, A. A., Adda, M., & Adams, C. (2009). Convergence of terrestrial and satellite mobile communication systems: an operator's perspective.International Journal of Mobile Communications, 7(3), 308-329. Talib, M. A., El Barachi, M., Khelif, A., & Ormandjieva, O. (2012). Guide to ISO 27001: UAE case study. Issues in Informing Science & Information Technology, 9, 331-350. Read More