2.1 Stakeholder identification and role descriptions Stakeholders are individuals, groups, and organisations with the power to influence the delivery of an organisation’s strategy and thus the organisation’s performance and/or a significant interest in an organisation’s strategy and thus the organisation’s performance (Wisniewski, 2001; Ackermann & Eden, 2011). In the context of the draft BSC to be developed, however, the analysis shall focus on relatively aggregated stakeholder groups. Firstly, the aim of this stakeholder analysis is not to pinpoint individual persons as stakeholders who may then be managed more easily than large organisations, but to identify rather broad stakeholder groups interested in Zara’s performance. Secondly, addressing …show more content…
store managers and frontline personnel, play a critical role in the context of Zara’s business model. Using customised PDAs, store managers constantly communicate customer feedback, either hard data such as orders and sales trends or soft data like customer reactions to a new style or the “buzz” around a new design, to Zara’s HQ where the feedback is used by designers to quickly develop new garments based on customers’ wishes (Ferdows et al., 2004). Frontline employees assist their superiors in collecting the feedback. Zara’s store managers and shop assistants thus close the communication loop between shoppers and Zara’s HQ (Ferdows et al., 2004) and therefore contribute hugely to Zara being able to first understand what customers like and then design and produce it (Buck, 2014). Accounting for their key role, Zara pays store managers an above-average salary and up to 100% of their salary in bonuses if they hit sales targets (Ruddick, …show more content…
NGOs interested in Zara’s performance may, for instance, include organisations with an environmental focus, such as Greenpeace who in 2012 made Zara commit to eliminate all discharge of hazardous chemicals from its supply chain and clothes (Greenpeace, 2012), and organisations who are rather concerned with the rights of the employees working, either directly or indirectly, for Zara, for example the NGO La Alameda who in 2013 accused Zara of outsourcing its production in Argentina to clandestine sweatshops letting immigrants work under slave-like conditions (Equal Times, 2013). Other political actors with a potential interest in Zara’s performance are local trade unions and organisations in charge of consumer
Key Stakeholders and Their Stakes A stakeholder is defined as an individual or group who has an influence or is influenced by any achievements made by an organization (Sexty, 2017). It is imperative for any business, especially in the banking industry, to be able to identify and respond to these various participants in order to remain successful. TD Bank has a myriad of stakeholders and has only recently looked to further its relationship with each of them in order to sustain a competitive advantage over other financial institutions (TD and Importance of Stakeholders, n.d.). One of the many groups that TD interacts with is the customer (Corporate Responsibility, n.d.).
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
The Target Corporation prides itself on their department store roots with a constant obligation to great prices and stylish originality. The main focus of every Target store is the customer, whom the corporation refers to as a "guest", making them feel more personal. Each guest can expect to walk into a clean, organized, and easy to navigate store with "high quality, stylishly designed items plus all the essentials for his or her life".1 The company also has a significant focus on design. The company employs a "design for all" strategy that says great design is for everyone to enjoy, everyday. The product designers know how to create products you will "love to live with and low prices you can't live without".1 The commitment to design has become a key technique of attracting and keeping their shoppers coming back.
Zara, as one of largest apparel retailer over the world, has changed the process of the whole fabric of the industry. Operation strategy of Zara involves having little stock, fast updating collections and communication within process of operation etc. Zara renew its products twice a week to pursue latest fashion, on the other hand other competitors only update once a season,
Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Coruña, Spain; a city which eventually became the central headquarters for Zara’s global operations. Since then they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice. These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. These three goals helped to shape Zara’s current business model.
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
Many organisations are addressing the relationship they have with stakeholders. Select an organisation that is currently changing its policies towards stakeholders and, acting the role of a key stakeholder representative prepare a positioning statement/report that summarises key issues for your supporters.
Regarding to organizational stakeholders, there are three main groups of stakeholders: customers, employees and investors. The company attempts to link stakeholders’ needs and expectations to the company’s goals. For customers, the company must treat them fairly and honestly. For employees, the company needs to treat them fairly, make them a part of the company and respect their needs. For investor, managers should comply with the accounting procedure, do not manip...
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
This has been possible through a remarkable and strategic supply chain of the company. Design, purchasing, production, distribution, and retailing are arranged in very unique way. Zara produces clothes that are not so much dissimilar to other manufacturers, but they beat them to the market (Sartal et al., 2017). The company has employed a policy that use less expensive fabrics, which has helped them to dispose the products at a lower price as compared to other competitors. Pricing policy at Zara has given the company a resounding marketing advantage that has helped it compete effectively in the congested industry. Supply chain has given the company due competitive advantage and it has been able to maintain it by design, warehousing, distribution, and logistics functions (De Jorge Moreno, & Carrasco, 2016). Zara has made this possible by design the organization, operational procedures, performance measures and even office configurations that has helped the flow of information and product easy. Zara manufacture its products in small quantity, which make the products, last in the stores for a small time and give it easy to manage and change the fashion depending on trends. To help the company meet its distribution and customer demands, the company has implemented a scheduling techniques, centrally managed inventory, reduced design cycle time, strong it system and logistics and distribution channels that were
Out of the 1,558 stores that Inditex operated in 45 countries in 2003, Zara chain had 550 stores with an average of opening one store per day worldwide. Today Zara has a huge international presence, with France being its largest international market. Its target market is young, fashion conscious city-dwellers. It offers a wide range of selection of clothes and accessories to three different segments of its target market– the largest being Women’s accounting for 60% of sales and the other two being Men’s and the fast-growing Children’s segment. Multinational clothing retailers such as H&M, Gap, and Benetton are its competitive rivals. Keeping this in mind, the consistent success of Zara in the ever-...
Stakeholders play an important role in an organization since they influence the success of an organization. Organizational stakeholders or internal stakeholders are individuals who are directly related to an organization and have the capability to influence the business. This stakeholder group includes board/staff members, customers, suppliers, employees, and shareholder (Henriques & Sadorsky, 1999). Stakeholders can influence the organization’s strategies, policies and this will depend on their relationship to the company itself. Internal stakeholders have the ability to influence the path and the result of an organization’s project since they are involved in the daily basis of the project. When an organization takes care about its internal stakeholders’ problems, the percentage for the project to be successful is higher since internal stakeholders feel that they are a priority in the company.
When using performance management to improve an organisation’s productivity you need to first decide who is the focus of the organisation’s long term goals, are they focusing on Shareholders or Stakeholders. The Shareholder approach focuses on the profit to the shareholders, no other factors need to be considered aside from the bottom line profits. The Stakeholder approach is a well-rounded, balanced approach to management, considering more than just how much money the organisation makes.