Business Strategy Essay Example | Topics and Well Written Essays - 1500 words - 2

Business Strategy - Essay Example Earth Plc needs to focus more to the expectations of their most prominent stakeholders and to the processes in which its culture influences the type of strategy it adopts (Abele, 2008). Principal stakeholder analysis Identification of the interests of the different stakeholders Fisk (2008) emphasized there are different stakeholders in Earth Plc. The customers are interested in the financial statements of Earth Plc in order to determine if the company will stay open during the times when the customers will be buying their much-needed mining needs. The employees of Earth Plc are needed the company’s financial statements in order to determine if it is ripe to ask for salary and other wage benefit increases. A set of financial statements that indicates a loss trend will indicate that there is high probability the company will close shop in the foreseeable future. In this case, a majority of the employees will be forced to find employment in other greener pastures (other companies ). The managers are interested to get a copy of the financial statements in order to know if they have performed their duties and responsibilities in accordance with preset benchmarks. Basically, managers are given a profit benchmark. Here, the financial statements that indicate a loss is equivalent to a failing grade; financial statements that show a net profit is equivalent to a passing grade. The suppliers are very interested to get a copy of the company’s financial statements to determine if the company will stay long enough to buy their goods and services. Financial statements indicating a net loss would prod the supplier to seek other clients to replace Earth Plc because there is a strong indication the company will close shop in the near future. The creditors are interested to get a copy of the financial statements of the Earth Plc. The creditors will use the financial statements as a ground for granting or approving the company’s credit limit. A financial state ment that indicates a net profit will encourage the creditors to immediately approve the company’s credit limit application. On the other hand, a financial statement that indicates a net loss will show that the company may not be able to pay their maturing debts on time due to lack of available cash on hand. The labor union is interested to get a copy of the financial statements in order to determine if the company is able to grant salary and other wage benefit increases. The net profit will indicate that the company will not be able to stay long enough to grant the salary increases. In this case, the labor unions will allow the postponement of the salary and other wage benefit increases. The environmental protection agencies are interested to grab a copy of the company’s financial statements the agencies are interested to know if the company is complying all environmental protection statutes. The financial statements generally indicate if Earth Plc is regularly dumpin g its mining wastes into the crystal clear waters of the nearby river. The environmental protection agencies will not hesitate to penalize companies, especially Earth Plc, that do not use high smoke stacks to let polluting smoke be release at a level that is higher than the height of the average person; this will lessen the people from inhaling the hazardous exhaust smoke used to