The company’s goals for the new project are to further expand its operations globally and increase probability. The company is currently operating in the American and European regions. As a result, other regions, such as the Asian market, remain untapped by the firm. Countries such as India in the region have considerably large populations making them a potential source of cheap labor and a ready market for the products Phone System Inc. manufactures. Establishing operations in India focuses on increasing the company’s profit due to the availability of low-cost labor and the large market in the country and other neighboring nations.
Problem Statement
Phone System Inc. must increase profitability, employee diversification, and job satisfaction by expanding operations to new markets where the cost of labor is potentially cheap and technologically oriented customers are readily available. Closure of one of the non-perming sites is necessary per the pursuance of the company’s goals and objectives.
Stakeholder Analysis
Phone System Inc.’s project to open a new facility in India necessitates stakeholder analysis since there are several interested parties. Notably, handling these stakeholders is a challenging task because their interests, agendas, and objectives vary significantly. However, performing stakeholder analysis will facilitate the identification of the influential interested parties and issues that may disrupt activities for establishing the new facility. Additionally, the process is instrumental in identifying means of communicating with the stakeholders and recognizing and mitigating the potential effects of negative interested parties. The key stakeholders for the project include the company leaders, employees, government agencies, customers, vendors, investors, communities, labor unions, and competitors.
Company Leaders
Phone System Inc. leaders are the most important key stakeholders. They comprise a team of executives who handle critical decisions related to the firm’s daily operations. These individuals further play a significant role in deciding the company’s long-term goals and efforts for growth and development (Agwu, 2019). Decisions made by this team can affect all people within and out of the firm and the direction in which the business takes. Therefore, they need to be managed closely to ensure that the project succeeds in the best interest of the company.
Employees
Employees are a vital resource for every business and are directly impacted by any decision implemented in companies. The Phone System Inc.’s operations and success can affect workers’ job stability, salaries, financial security, job satisfaction, and more. Equally, workers as key stakeholders can significantly affect the company positively or negatively depending on their reaction to the firm’s move (Agwu, 2019). For instance, managers can influence the success of the project’s activities by motivating other employees.
Investors
Phone System Inc.’s investors are important stakeholders who can influence its success. The investors have personal and financial support related to the company’s accomplishment of goals and objectives (Wanjere et al., 2021). Equally, actions related to operations that the firm takes can impact the investors’ profit. Therefore, Phone System Inc. needs to manage them closely to ensure their continued support for the effort of establishing a new facility in India.
Government Agencies
Government systems in different regions or countries affect the way companies conduct their business. According to Graafland and Bovenberg (2019), different government agencies set laws and regulations for such factors as workplace safety conditions and business taxes. The government in a particular nation may also have regulations for particular industries. Therefore, Phone System Inc. needs to involve government agencies in India to ensure that it meets all requirements for operating business in the country and alleviates risks of legal litigation.
Vendors
Most companies depend on vendors to execute their business operations and projects. Equally, these vendors rely on the firms to support their operations financially (Agwu, 2019). Phone System Inc.’s vendors may include contractors, suppliers, and distributors. The closure of one facility in the United States and the opening new one in India will impact both local and international suppliers and distributors and raw materials and products. Thus, engaging these stakeholders will minimize the risks of losing them to competitors.
Customers
Customers are among Phone System Inc.’s stakeholders since the quality and quality of products the company offers affect them. Current and potential customers can be key stakeholders because they can help the firm with the implementation of the new project. For instance, Phone System Inc. can ask potential customers in the Indian market to be part of the focus groups that will give the company honest reviews. Although their power and interest are low, Phone System Inc. should monitor them.
Communities
Local communities where the business operates can considerably influence its activities and decisions. Their opinion regarding a company can impact its reputation regionally and worldwide (Agwu, 2019). Local communities are an important source of labor for most businesses. On the other hand, firms can affect local communities in diverse ways, such as by creating new employment opportunities and economic development. Therefore, Phone System Inc. needs to monitor local communities, which have low power-low interest in its success, in India, where it is planning to establish a new facility.
Competitors
Every business environment has a few or more competitors that firms need to consider. Although competitors are a significant source of challenges to a company’s success, they are essential stakeholders (Lohmann et al., 2019). Phone System Inc. must evaluate competitors offering similar products in the Indian market since they can impact the firm’s operations and strategic decisions. Monitoring these competitors will help Phone System Inc. design appropriate strategies for successful penetration into the new market.
References
Agwu, E. (2019). Impact of stakeholders’ analysis on organizational performance. International Journal of Strategic Decision Sciences, 10(4), 64-80. Web.
Graafland, J., & Bovenberg, L. (2019). Government regulation, business leaders’ motivations and environmental performance of SMEs.Journal of Environmental Planning and Management, 63(8), 1335-1355. Web.
Lohmann, S., Lacerda, D., Camargo, L., & Dresch, A. (2019). Operations strategy and analysis of competitive criteria: a case study of a food business.Gestão &Amp; Produção, 26(3), 1-15. Web.
Wanjere, M., Ogutu, M., Kinoti, M., & Iraki, X. (2021). Foreign direct investment and local firm’s performance.European Journal of Business and Management Research, 6(6), 216-222. Web.