Step 7 - Stakeholder's Analysis (Global Steel Industry)

Stakeholder Analysis (Global Steel Industry)

Name of the Stakeholder	Their Expectation from BSC	Their Power
1. Customer	Quality and service commensurate with price	Switching of loyalty to the competitor
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction
Since customer is the foundation of BSC, his expectation of quality and service commensurate with price is taken care of by “Customer satisfaction”

Name of the Stakeholder	Their Expectation from BSC	Their Power
2. Shareholder	Acceptable return on Investment	Change management with its voting rights
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction
If we include the expectation of shareholder into the objective, the outside message is that the company exists for profit which will be in conflict of other important stakeholders like customers. However the expectation of stakeholder is indirectly taken care of by reduction in cost and increase in market share.

Name of the Stakeholder	Their Expectation from BSC	Their Power
3. Employees	Competitive pay with better working conditions	Low Productivity
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction
The employee expectation need not be included in view of the fact that competitive pay and better working condition are met by increase market share and huge savings out of cost reductions.

Name of the Stakeholder	Their Expectation from BSC	Their Power
4. Supplier	Long term contracts with timely payment	Disruptive supply with unsatisfactory relation
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction and Liquidity
The raw material is a crucial element for any steel company. Hence the supplier must be assured of liquidity so as to enable them to get their payment in time. Hence the word “Liquidity” is included.
Name of the Stakeholder	Their Expectation from BSC	Their Power
5. Financiers	On time payment with compliance with other conditions	Taking legal action (Filing bankruptcy application)
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction, Solvency and Liquidity
Financiers are the live wire of any steel company hence they are assured of the solvent position of the company by adding a word “Solvency”

Name of the Stakeholder	Their Expectation from BSC	Their Power
6. Society	Environmental friendly	Powerful Lobbying with protest and demonstration
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction, Corporate Social Responsibility, Solvency, and Liquidity
The steel companies of the world being world’s most polluting industry it is important to satisfy the societal concerns. Hence including the word “Corporate Social Responsibility”

Name of the Stakeholder	Their Expectation from BSC	Their Power
7. Government	Full employment and compliance to laws	Enforcement of legal provisions
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction, Corporate Social Responsibility, Solvency, and Liquidity
The expectation of the government is already included in the word “Corporate Social Responsibility”

Name of the Stakeholder	Their Expectation from BSC	Their Power
8. Board of Directors	Excellent overall performance	Change the top management
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction, Corporate Social Responsibility, Solvency, and Liquidity
All the expectations of the board of directors are included in the existing objectives

Name of the Stakeholder	Their Expectation from BSC	Their Power
9. CEO	Growth and co-ordination	Change the objective
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction, Corporate Social Responsibility, Solvency, and Liquidity
All the expectations of the CEO are included in the existing objectives

Name of the Stakeholder	Their Expectation from BSC	Their Power
10. Competitors	Failure of BSC in all fronts	Provide Stiff competition
To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction, Corporate Social Responsibility, Solvency, and Liquidity
No need to include the expectation of the competitor in the objective

Final Corporate Objective:

To increase market share from 10% to 15% at a cost of 75% as against existing 85% of sales before 2003 consistent with customer satisfaction, Corporate Social Responsibility, Solvency, and Liquidity