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My company is called A&G Machinery. It specializes on producing different types of machinery and tools. The company is quite successful and copes with competitors in the market well. It has operated for 10 years already and has no significant problems. The company has both primary and secondary stakeholders. They represent several groups. Each group has its role and relationships with other groups.
According to Rabinowitz (2013),
Primary stakeholders are the people or groups that stand to be directly affected, either positively or negatively, by an effort or the actions of an agency, institution, or organization. In some cases, there are primary stakeholders on both sides of the equation: a regulation that benefits one group may have a negative effect on another… . Secondary stakeholders are people or groups that are indirectly affected, either positively or negatively, by an effort or the actions of an agency, institution, or organization.
For A&G Machinery, primary stakeholders are employees, stockholders, customers, suppliers and creditors. They are affected by changes in the company directly. They can influence the company, too. For example, suppliers set prices for their products, which determine the prices for A&G Machinery products. Secondary stakeholders for the company are government agencies, money-lending institutions or monitoring agencies. They are not directly involved in the business activity, but have an interest in it. For example, government agencies impose taxes and fees, set regulations on business activities, and they all influence A&G Machinery.
Primary and secondary stakeholders groups are related with each other. For example, monitoring agencies observe the company permanently. However, they can enhance monitoring for a certain business activity if they receive the information about some problems with it. The information can be received from stockholders, customers, suppliers or creditors. In addition, money-lending institutions can receive the information from current A&G Machinerys creditors about its financial conditions and ability to pay off the debts. Therefore, they will know if it is safe to lend A&G Machinery or not.
A&G Machinerys stakeholders can influence the destiny of its business in different ways. Clients, employees, suppliers and business partners represent the stakeholder groups that exert influence on A&G Machinerys activities and decisions. In order to make this influence positive, A&G Machinery tries to enhance the social responsibility. It aims at combining profit making with the social responsibility.
Customers influence A&G Machinery to a considerable degree. It is essential to realize that customers should be satisfied with products and services. In this context, the company will be able to remain stable or grow, gain profits and be a successful market player (Kokemuller, 2013). A&G Machinery understands all these facts and keeps the system of customer relationship management. In terms of it, the information is collected and analyzed in order to provide better strategies and satisfy the customers more with the purpose of being a successful company.
Employees can influence activities of A&G Machinery as well. Companies should pay attention to employees interests during their activities. Treating employees like a precious asset, creating a pleasant working environment and appreciating their thoughts and opinions of are the significant factors of achieving the business success (Kokemuller, 2013). A&G Machinery tries to act according to such recommendations. It appreciates its employees and often plans its activities in accordance with employees opinions and recommendations.
Business partners are highly significant. They influence A&G Machinerys supply chain and prices. They also help to make decisions. For example, business partners sometimes provide crucial information about market conditions and competitors. A&G Machinery uses this information to make decisions and plans.
It is essential for stakeholders to form a coalition. It would help A&G Machinery to operate more efficiently and achieve its goals. In order to form a coalition, stakeholders should be interested in it. Therefore, a special plan of forming the coalition should be developed.
There are some recommended strategies for the coalition forming. It is of paramount significance to realize the main goals of a coalition. They can be long-term and short-term. Therefore, A&G Machinery should inform its stakeholders about these goals in a clear way. The goals should be pivotal not only for the company, but also for the stakeholders. It is also necessary to create some benefits, which would encourage stakeholders to form a coalition. They can include a support of the members of the coalition and the persons ability to influence them; building mutually beneficial relationships between stakeholders; strengthening leadership within the coalition, etc. (Engaging diverse stakeholders in coalitions, 2011).
It is also necessary for A&G Machinery to create and maintain good relationships and trust among stakeholders. It would help to encourage them to enter the coalition. The long-term relationship building is usually more crucial than short-term objectives of the coalition. Coalition members should not feel as being used by the company. It is essential to understand members strengths and what they can bring to the community with their work. It is good, when coalition priorities intersect with members interests. It is better to build good relations first and then focus the community on the tasks (Engaging diverse stakeholders in coalitions, 2011).
It is also important to work with different agendas and interests. In addition, it is necessary to explore various strategies. People should be involved in terms of A&G Machinerys goals. Different levels of the coalition membership can be created (Engaging diverse stakeholders in coalitions, 2011).
The coalition cannot do well without a proper culture. Consider the way the agenda is structured, as well as the timing and location of meetings. Training in cultural humility and/or multicultural communication may help participants understand their own cultural lens for viewing the work and be able to listen and engage with people with different perspectives and experiences (Engaging diverse stakeholders in coalitions, 2011).
In order to make the coalition effective, A&G Machinery should address the difference in power and resources. In order to build an efficient coalition, it is necessary to understand the sensitivity to the dynamics of power and practice of the cultural sphere. It is necessary to communicate with coalitions regularly (Engaging diverse stakeholders in coalitions, 2011).
Coalitions can provide a specific assistance to A&G Machinery. It can include peoples opinions and advices. They can be used to create new goals and reach them effectively.
Some challenges in term of encouraging stakeholders to form a coalition can occur for A&G Machinery. For example, people may not want to form a coalition, because they cannot feel its real advantages for them. Therefore, A&G Machinery should inform about those benefits in advance. In can be done in many ways. For example, prospects or other printed material can be made and spread among all stakeholders. Thus, A&G Machinery can inform them about possible coalitions, their aims and advantages they can bring to their members. It is also possible to organize meetings and presentations for stakeholders.
Another crucial challenge may include the lack of experience in coalition building. To cope with such an issue, the experience of other successful coalitions of companies can be used. It is essential to create a productive coalition, which will bring only benefits for A&G Machinery.