MKTG202 Marketing Communications: Analysis of Ngai Tahu Holdings

Evaluate the impact of stakeholder relationship management on management practice within operational context in business environment.

This task has to do with benchmarking the outcome of the stakeholder relationship management so as to know the effect. In this task, you will be required to implement stakeholder relationship management practices. 

1 Identify three reasons for stakeholder relationship management with an example of how this has benefitted management practices .

2. You are now part of the team that will be evaluating the effectiveness of the stakeholder relationship management (SRM) at Ngai Tohu Holdings. Both your team and you will have different learning experiences. 

Assuming that Ngai Tohu Holdings have implemented the following two situations of engaging with their stakeholders, 

i. Review of the Stakeholders Community (People who are networking with Ngai Tohu)

ii. Review of Stakeholders Engagement Profile (Attitude of the stakeholders) 

a. Explain how each of the situations gives outcomes that will demonstrate effectiveness of the SRM

b. What pitfalls will you encounter that will give you a poor indication of the effectiveness of the situations

c. How do you ensure the success in each of the two situations

3. Outline any three (3) ways by which your team and you can maintain a healthy stakeholders relationship management system.

4. Outline the normal 4 stages by which your team and you can build a evaluative stakeholders relationship management system for use by management.

Stakeholder relationship management comprises of an integral role for any business management especially in the context of business environment (Harmsworth, 2009). The business environment within New Zealand is changing dynamically and in a rapid manner, which is bringing about tremendous impact on the business of Ngai Tahu. The current analysis of the business, benchmarks the outcome of the stakeholder relationship management for understanding business impact.   

1. Stakeholder Relationship Management

In order to conduct a business in a profitable manner, stakeholder group management constitutes an integral process. With diversified business processes and management practices stakeholder management has impacted the business in a positive manner (Harmsworth & Tahi, 2008). Managing relationship with employees, who are from local communities, the Corporation has been able to generate innovative efforts from them. Innovative efforts from farming, fishing, trade has allowed the business to rapidly grow and develop into a revenue earning ventures. The Corporation maintains highest possible standards on health and safety with respect and care for their staff. By respecting and caring for their staffs, they have been able to provide motivation to them to stay committed to the business values and deliver returns to the same. The staffs and employees embody Ngai Tahutanga as a distinctive element within their operations, meaning they have high regards for their culture. The contribution that staffs and employees have made into the business depicts ways in which relationship management has contributed in a positive manner to the business.     

2. Effectiveness of Stakeholder Relationship Management (SRM)

Effectiveness of SRM at Ngai Tahu Holdings has various positive impacts on the business of the Corporation (Jepsen & Eskerod, 2009). SRM processes benefits management practices as they include internal along with external stakeholder group.  Engaging with stakeholders in accordance with varied situation might have different impact. There are two situational analyses that are undertaken in the current consideration, first being reviewing Stakeholders Community and second being reviewing Stakeholders Engagement Profile.   

1. Situational Effectiveness

When managing relationship with stakeholder group, it becomes impertinent to review the Stakeholder Community. Stakeholder Community comprises of people, who are networking with Ngai Tahu holdings. Reviewing the community will allow having relevant insights into the details and perspectives of the Community, thereby developing a more relevant and appropriate strategy to deal with them. Applying a strategy with more relevant insight into the Community will allow adopting a suitable strategy for engagement.  Secondly review of the stakeholder Engagement Profile will allow understanding relevant attitudes of the stakeholders. Every stakeholder group has varied attitude and perception towards the Holdings. This will provide devising strategies suited to their engagement. Moreover, the Corporation can take a more proactive measure in devising a benefit back to the Stakeholder group by understanding their specific interests. Such steps will determine effectiveness of the SRM.      

1. Effectiveness of SRM

SRM involves a vast dimension of understanding relationship and attitudes of each and every stakeholder group. The holdings Corporation need to analyse relationship for understanding steps needed for the purpose of devising SRM strategies. Analysing pitfalls will allow determining effectiveness of the SRM in an appropriate manner. Potential pitfalls in SRM might include inability to engage stakeholders community to contribute in a positive manner to the business. Indifferent attitude of a particular stakeholder group towards conduct of the business can be viewed as ineffective SRM. While the sole focus of the business remains in extensively engaging stakeholder group such that they can provide innovative strategies and contribute in a positive manner to the business, it might not be effective. Lack of proactive interest might dishearten stakeholder group and they might get engaged in any other business, which is trying extensively to build its brand name.        

1. Success of the two situation

Stakeholder evaluation is extremely important so as to be able to devise strategies effectively for them. It becomes impertinent to consider success in reviewing of Stakeholder Community and evaluation of Stakeholders Engagement Profile. Attitude of the stakeholder’s determination and understanding people with whom Ngai Tahu Holding is engaging with will provide extensive benefits to the business (Roloff, 2008). Success in reviewing of Stakeholders Community will be demonstrated by undertaking feedback from them. People who are networked with Ngai Tahu are important for the Corporation hence their interests and disinterests have to be understood as well as analysed for the benefits of the business. An extensive feedback strategy needs to be implemented which can ascertain success in this process. Secondly evaluation of Stakeholders Engagement Profile meaning understanding attitude of the stakeholders can be done by maintaining a record and system of evaluation. Attitude of stakeholder group can be understood in an extensive manner by maintaining a record of their past behaviour and experiences. Moreover, a detailed insight into their other interests can provide valuable insights to the Corporation.     

3. Healthy Stakeholder Relationship Management System

Maintaining a healthy stakeholder relationship management system can ensure that the organization functions in an effective manner (Kenney et al., 2015). Therefore, it is a priority for every business to maintain a health stakeholder relationship system. The Corporation can do so in the following manner;

1. Indicating objectives of the organization clearly

Unclear objectives of the organization can lead to confusion amongst stakeholder groups. Meaning objectives of the organization has to be clearly stated and understood such that there are no clashes of initiatives taken by relevant group of stakeholders. Stakeholder’s initiatives can provide the business its success hence they need to decide upon and clearly indicate objectives. Clear statement of vision and objectives amongst varied groups of stakeholders can lead to better goal attainment and maintaining clarity in relationship. This can also ensure healthy relationship being maintained amongst varied stakeholder group.       

1. Providing a common purpose to be achieved

All stakeholder groups within the organization need to strive towards a common purpose. A sense of common purpose or common direction ensures that all stakeholder groups are committed towards the same goals within the organization (Olander & Landin, 2008). It also ensures varied stakeholder group from feeling less pressured compared to other stakeholder group. Meaning common purpose for employees might be to drive revenues in the business, whereas for the Board of Directors it might be to create sustainability in business. These clashing initiatives might dampen the entire effort to maintain healthy relationship. It in turn can turn some stakeholder group adverse towards the business.    

1. Return on investment provided to stakeholders    

The purpose of every stakeholder group to be engaged within the business is to get appropriate returns from the same. While every stakeholder expects some or the other sort of return on whatever investment they are making, it becomes pertinent that it is able to retain their interests. The corporation needs to identify and provide varied returns to each and every stakeholder group such that their interests are retained in the business (Weske, 2012).

4. Evaluative Stakeholders Relationship Management System

A framework for the purpose of evaluating stakeholder relationship allows understanding any pitfalls in case present and in amending them. Stages by which an evaluative stakeholder’s relationship management system can be devised are as below (Taumaunu, P?rou & Tahu, 2013).

1. Stage 1- Community Understanding: The People, who are networking and are connected to the Corporation, are integral stakeholders for the Corporation. Their attitude towards the Corporation and detailed understanding of the business has to be analysed by the Company in order that a healthy relationship can be maintained with them.

1. Stage 2 - Engagement with Ngai Tahu: The Corporation had been built keeping in mind the local community in New Zealand. The Corporation aims at bringing to the forefront the several innovative efforts of the community by sustainably maintaining the environment. Engagement which the stakeholder community undertakes with the corporation is an essential process towards understanding and developing a healthy relationship.  

1. Stage 3 - Feedback Analysis: The Corporation needs to undertake a continuous process of feedback. Such feedback analysis will allow the management of the business analyse any gaps that are pertaining towards healthy relationship development amongst stakeholder group and the Corporation.  

1. Stage 4 - Comparing with KPA: The Corporation need to devise key areas of performance (KPA) and align them to organizational objectives such that it becomes easy to evaluate stakeholder’s relationship. A KPA needs to include engagement, participation in meetings, contributions made and so on. Comparing each stakeholder groups’ contribution with KPA will allow devising strategies to fill in gaps in maintaining healthy relationship.  

Conclusion

The Ngai Tahu people of New Zealand have always been innovative, resourceful and tenacious. There sustainable ways and practices has allowed creation of wealth and jobs for the families and community of iwi tribe, hapu tribe and whanau tribe. Their entrepreneurial capabilities has provided development of trade and supplying of previous resources. The stakeholder engagement strategy has allowed the business to develop trade opportunities offshore as well, under authorities of Ngai Tahu chiefs. Stakeholder engagement strategies have allowed the growth and constant development of the business. With continuous innovative trends in almost all the varied businesses, entrepreneurs have been able to develop opportunities for the business inland and offshore in a sustainable manner.    

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