Assignment Cover Sheet
Centre nameOSHWAL COLLEGE
Learner nameBHUMIKA MANISHKUMAR DESAI
ABE membership number 557357
Unit Name MANAGING STAKEHOLDER RELATIONSHIPS
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For ABE use only
ABE 2nd mark
167957521780500405130023495000ABE mark(if applicable)
East African Breweries Limited (EABL)Name of the OrganizationEast African Breweries was founded in 1922 as Kenya Breweries Limited by two white settlers, George and Charles Hurst. EABL is a Kenya based holding company. It is a leading company not only in Kenya but in East Africa as well. It is Public Limited Company. Its headquarters are in Nairobi. The group largest shareholder is Diageo Plc (Eabl.com, 2018).
Size of OrganizationEABL has 1001 to 5000 employees. Their sales per business (drinks) are 70,247M. EABL’s primary listing is on the Nairobi Stock Exchange and cross-listed on the Uganda Securities Exchange and Dar-es-Salaam Stock Exchange. The shareholding in the group’s stock in Diageo and Associate Companies is 50.03% and others via NSE, USE and DSE are 49.97% (En.wikipedia.org, 2018).
EABL has invested 5.5 billion shillings in physical assets and improving the capacity of the business by getting world-class facilities in the last five years (KANGETHE, 2018).
Geographical LocationEABL headquarters are located in Nairobi with subsidiaries in Kenya, Uganda, Tanzania and South Sudan. The group has distribution partners in Burundi, Democratic Republic of Congo and Rwanda.
Examples of productsTusker Malt Lager, Pilsner, White Cap, White Cap Light, Senator, Guinness, Tusker Lager Johnnie Walker, Smirnoff, Kenya Cane, Chrome Vodka, and Ciroc.
Key competitorsKey competitors of EABL include Koroche Breweries and International Breweries.
Main customer segmentsAge: 18 years and above
Income: Targeting high and middle-income earners
Gender: Consumed by both men and women as the generation changes.
Word count: 245
TOC o “1-3” h z u East African Breweries Limited (EABL) PAGEREF _Toc515799634 h 2Name of the Organization PAGEREF _Toc515799635 h 2Size of Organization PAGEREF _Toc515799636 h 2Geographical Location PAGEREF _Toc515799637 h 2Examples of products PAGEREF _Toc515799638 h 2Key competitors PAGEREF _Toc515799639 h 2Main customer segments PAGEREF _Toc515799640 h 2Age PAGEREF _Toc515799641 h 2Income PAGEREF _Toc515799642 h 2Gender PAGEREF _Toc515799643 h 2Introduction PAGEREF _Toc515799644 h 5Task 1 PAGEREF _Toc515799645 h 6Analyse the external environmental factors that might affect your chosen organisation’s stakeholders and discuss how these factors might be identified. PAGEREF _Toc515799646 h 6Employees PAGEREF _Toc515799647 h 7Legal Environment PAGEREF _Toc515799648 h 7Technological Environment PAGEREF _Toc515799649 h 7Suppliers PAGEREF _Toc515799650 h 8Political/ Legal Factors PAGEREF _Toc515799651 h 8Economic Environment PAGEREF _Toc515799652 h 8Customers PAGEREF _Toc515799653 h 8The legal Environment PAGEREF _Toc515799654 h 8Legal Factor PAGEREF _Toc515799655 h 8Factors PAGEREF _Toc515799656 h 8Forecasting PAGEREF _Toc515799657 h 8Competitive Analysis PAGEREF _Toc515799658 h 8Strategic planning PAGEREF _Toc515799659 h 9Scenario planning PAGEREF _Toc515799660 h 9Task 2 PAGEREF _Toc515799661 h 9Identify a customer segment of your chosen organization. For this segment, examine the customer decision making process (when making purchasing decisions) and the impact of influencers, within this process. PAGEREF _Toc515799662 h 9Customer segment PAGEREF _Toc515799663 h 9The influencers PAGEREF _Toc515799664 h 10Task 3 PAGEREF _Toc515799665 h 11In the context of your chosen organization, discuss the importance of customer loyalty and propose a loyalty program for key customers. PAGEREF _Toc515799666 h 11Customer Loyalty PAGEREF _Toc515799667 h 11The importance of customer loyalty PAGEREF _Toc515799668 h 11Repeat Purchase PAGEREF _Toc515799669 h 11Free Marketing PAGEREF _Toc515799670 h 11Focus Group PAGEREF _Toc515799671 h 12Proposing a loyalty program for East Africa Brewery. PAGEREF _Toc515799672 h 12Loyalty card system PAGEREF _Toc515799673 h 12Task 4 PAGEREF _Toc515799674 h 12Taking ONE of your chosen organisation’s key stakeholder groups, discuss the strategies and approaches for developing and managing relationships between the organisation and these stakeholders PAGEREF _Toc515799675 h 12Local community PAGEREF _Toc515799676 h 12Water access PAGEREF _Toc515799677 h 13Conclusion PAGEREF _Toc515799678 h 14References PAGEREF _Toc515799679 h 15Appendices PAGEREF _Toc515799680 h 17
IntroductionIn this unit, exploring different stakeholders in depth, analyzing their potential impact and influence in order to develop relevant relationship management strategies that will enable organisations to overcome threats, take advantage of opportunities, achieve their objectives and protect their brand (Abeuk.com, 2018).
I have chosen East African Breweries Limited it is located in Kenya and it consists of beer, spirits and other alcohol.
Task 1 talk about how the external environment affects the stakeholders in EABL. Using the Mendlows power interest matrix has explained how they have they are influenced. The objectives of an organisation will be governed by its key stakeholders. These key stakeholders are determined using stakeholder mapping. Mendelow’s matrix is a popular method for performing stakeholder mapping (Kfknowledgebank.kaplan.co.uk, 2018).
In task 2 it says about the customer segment in which EABL has to retain the customers due to getting new customers is hard and expensive. They have to be loyal to customers and for that it is important they target their regular customers who purchase from them and to satisfy them.
Task 3 is about customer loyalty program. Many companies use card system, bonuses, and promotions. EABL also uses promotions and bonuses to reward their customers for a repeat purchase. The question talks about proposing a new loyalty program.
Task 4 says about how East Africa Breweries Limited the production business has gone through some changes within the previous couple of years, so this analysis started to search out the external changes within the production business therein square measure poignant geographic region Breweries restricted and also the strategies the corporate is victimization to navigate through.
Analyse the external environmental factors that might affect your chosen organisation’s stakeholders and discuss how these factors might be identified.Stakeholders are people who have an interest in a company’s or organization’s affairs (stakeholder defination and meaning, 2018). The key stakeholders are the distributors/suppliers, employees, the bar owners who sell.
Harvard professor Francis Aguilar is thought to be the creator of PEST Analysis. PEST can be useful it causes you abstain from beginning ventures that are probably going to come up short, for reasons outside your ability to control. (PEST analysis, 2018)
Mendelow’s matrix (Mendelow, 1991) suggests a method for mapping stakeholders building on the notions of interest and power. Stakeholders’ power refers to their actual ability to affect the firm as shown in the figure below.
Legal EnvironmentEstablishing expectations and holding all employees to the same standards can go a long way toward limiting the exposure to employment discrimination claims, wage and hour complaints, and overtime lawsuits down the road. Additionally, developing consistent and responsible policies regarding at-work consumption and proper handling and disposal of alcohol are considerations of special importance to the brewery industry. The employees at EABL do not discriminate and they all are treated equally whether it is the age, race, ethnicity or religion. The employer of EABL must avoid extending preferential treatment to a group of people based on their characteristics (Smallbusiness.chron.com, 2018).
Technological EnvironmentThe technology can help the innovation of their industry. Employees can give ideas on how to make it more successful and efficient. EABL use software for their employees to work in a simpler method for making spreadsheets, balance sheet, documents. The communication between the employees and the other colleague’s is improved by emailing, video conferencing and social media who are from a different location to save their travelling expense and save time. Training can improve employees if they use webinars which is an effective method for providing training at convenient times for a larger segment (Bizfluent.com, 2018).
SuppliersFirms produce and sell a broad range of items including ingredients for the production process, fuel, packaging materials, sales displays or machinery (Tax.ny.gov, 2018).
Political/ Legal FactorsFor the political, it can be permission granted for the distribution of the alcohol. Risk mitigation efforts to the supplier are especially important since transferring supply chain exposures has become problematic for example natural disasters, the property insurance.
Economic EnvironmentThe East Africa beer market continues to boom despite economic pressures with consumption reaching 18.6 million hectoliters. The industry’s economic impact the supplier is the ripple effect of beer benefits agriculture, manufacturing, construction, transportation and many other businesses whose livelihood depends on the beer industry (Beer Institute, 2018).
CustomersThe legal EnvironmentCommunity Laws in several jurisdictions forbid minors from coming into a bar. If those beneath legal age area unit allowed entering, as is that the case with pubs that serve food, they’re not allowed to drink. Cities typically have legal restrictions on wherever a bar is also settled and on the kinds of alcohol they’ll serve to their customers. Some bars might have a license to serve brew and wine, Wiki2.org, (2018).
Legal FactorLaws and regulations around alcohol affect the community as a whole; facilitate modification social norms, thereby affecting alcohol use. An example is that reducing advertising and alcohol support of events or requiring responsible alcohol beverage service training for bar owners and server, Alcoholpolicymd.com, ( 2018).
ForecastingEABL leading brands Tusker and Guinness are projected to register sluggish growth in the medium term due to higher taxation. It will likely take longer to get Guinness and Tusker back to consistent growth. Legislation Excise duties and taxes have a significant impact on sales. Various pieces of legislation exist in Kenya and region to curtail alcoholism. Governments in the region have used excise duties on alcohol to raise funds Anon, (2018). Due to environment the product should be unique by branding and packaging.
Competitive AnalysisEABL sales are made through their distributors. Key manufacturers are entering into collaboration with the online channels in order to reach maximum customers and also to upsurge the brand value of the product. Key players in the wine market, is inclined to introduce new products in the market or to extend the product line of renowned product. Also, the company promotes their new products on social media in order to reach many customers, NBC-2.com, (2018). The use of private information can be good for the economy since it is not published by any of the people working for EABL that can be the finance, monetary economy.
Strategic planningGovernment campaign against drinking and driving hard-hitting campaigns and stiffer penalties have helped to reduce the number of roads accidents, deaths, injuries and damage. Campaigns have aimed to raise awareness of the legal situation and the dangers of driving while intoxicated (Bartleby.com, 2018).
Scenario planningThey make long term plans where it’s flexible for them and it’s easier for customers. The beer industry relies heavily on technology to develop and refine distribution channels. Without this technology, we wouldn’t have any beer on the shelves. But if a company doesn’t have the leading tech to speed up their distribution process, it leads to delays. It can even limit the amount of beer produced or put a company out of business (Frue, 2018).
Task 2Identify a customer segment of your chosen organization. For this segment, examine the customer decision making process (when making purchasing decisions) and the impact of influencers, within this process.Customer segmentCustomer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests and spending habits. It relies on identifying key differentiators that divide customers into groups that can be targeted. The customer segment identified is between 18 – 21age – groups (SearchSalesforce, 2018).
The consumer decision-making process is as follows:
The need recognition
It is the primary stage of the customer call method, within which the patron acknowledges a haul or want. The people between (18 – 21) can purchase wine, brewage or spirits to satisfy the wish of cravings and coming together throughout their free time. It’s consumed sometimes that’s events like birthdays, weddings, holidays.
It is categorized as internal or external analysis. If they’re overwhelming it for the primary time then they’d consult a follower to understand additional regarding the brewage content for instance the mammal malt is five-hitter. An individual will visit a market and differentiate the worth of every alcohol.
Evaluation of alternatives
During this stage, shoppers compare the brands and product that square measure in their elicited set. the purchasers like mammal malt as a result of it’s the most effective flavor, it doesn’t enable individuals to induce hangovers from one bottle and also the substitute of mammal malt is Guinness may be a robust brewage that has half-dozen.5% alcohol and it’s not appropriate for diabetic, it’s a feedback.
The purchase call is that the fourth stage within the client call method and once the acquisition truly takes place. The individual is also influenced with a feedback which is able to not wish them to get for instance its facet impact that’s liver failure or frequent accident would possibly cause injuries or death. They have Associate in nursing identification card since it’s the government rule to prove that they’re eighteen and on top of.
Post purchase behavior
It is once the client assesses whether or not they is glad or disgruntled with procurement. The client has currently determined to re-purchase as a result of they’re glad with the EABL product (beer). Brewage is claimed to assist forestall viscous illness and psychological feature decline that’s a plus of 18-21 elder teams.
The influencers are family, friends and also the society. These square measure United Nations agency individuals influence others to drink and should result in tons of consumption of alcohol or wine which can result in health problems afterward as they grow old and that they become habit-forming to that.
The parents will influence their kids and may set Associate in nursing example to them. If they drink frequently the teenagers square measure influenced additional. Poor parental direction can even influence teen drinking, that’s their folks don’t recognize wherever their kids square measure going out in the dark throughout the weekends. Not all kids square measure probably to drink as a result of they need to understand what makes them consume it frequently and need to search out how to consult their folks regarding drinking. The acquisition stage affects as a result of solely eighteen and on top of square measure allowed to enter the clubs or tap house, neither supermarkets enable to sell.
Peers play a vital role as influencers. once they meet and choose sleepovers at one and another house the friend could influence the opposite one to drink and persuade them to style for the primary time and makes them consume it on every occasion they meet therefore it merely becomes habit-forming. They need to be distinctive and get the top quality. The analysis of different stage is employed during this case as a result of the cohort includes a wide selection of selections since they recognize what they need for his or her cravings.
If a celebration is organized within the compound and there square measure drinks obtainable, individuals square measure influenced United Nations agency don’t drink. An excessive amount of consumption will produce problems as fights or they need no plan what they’re speaking and insulting themselves. The information search is that the stage affected as a result of they already know that alcohol isn’t sensible at some purpose and even when they need consulted a number of individuals regarding it they still wish don’t wish to quit drinking.
These is a foul influencer that’s if we’ve a follower United Nations agency keeps on drinking perpetually and if we have a tendency to stick with them most of the time faculty in school. It becomes habit-forming as a result of they begin from a young age and that they don’t wish to remain within the house. Friends United Nations agency square measure among them are following their steps.
Word count:824Task 3In the context of your chosen organization, discuss the importance of customer loyalty and propose a loyalty program for key customers.Customer LoyaltyPrimarily, customer loyalty is when a person transacts with a brand (or purchases a specific product) on an ongoing basis (Anon, 2018).
The importance of customer loyaltyRepeat Purchase
Without happy customers the business cannot survive. Loyal customers square measure vital as a result they’re committed for one whole and are happy with what their service. Repeat customers square measure World Health Organization retains the high profits, overall success facilitate to grow.
Free MarketingThe customers World Health Organization square measure loyal go and share their word of mouth as a result of they’re happy customers or they’re happy and the way they feel regarding the whole and the way they ought to amendment their opinions regarding the whole they’re exploitation.
Focus GroupLoyal customers will act as attention groups they permit individuals to share a flash regarding the opinions. They answer surveys on social media and that they perpetually wish to be a part of the corporate in order that they feel they’re treated an equivalent. They love the corporate and don’t wish it to travel with the responses they’re given.
They client sticks to at least one product meaning they need given their client loyalty. They visit the corporate additional usually and that they square measure possible to assist them in their onerous time or unsure times. If one thing goes wrong, loyal customers square measure possible to offer edges and keep faithful the business.
Note: client loyalty will typically not be nice, an excellent or a good experience; they switch brands if they’re not obtaining great deals.
Proposing a loyalty program for East Africa Brewery.
Loyalty card systemTask 4
Taking ONE of your chosen organisation’s key stakeholder groups, discuss the strategies and approaches for developing and managing relationships between the organisation and these stakeholdersLocal communityA local community is a group of interacting people sharing an environment. In human communities, intent, belief, resources, preferences, needs, risks, and a number of other conditions may be present and common, affecting the identity of the participants and their degree of cohesiveness (local community, 2018).
EABL believes that our business can only thrive in a healthy community environment. Our success is therefore, reliant on sustainable growth and development of our local communities. Working with our partners, local stakeholders and the communities themselves, EABL contributes to community sustainability by providing local jobs, building local talent and leadership, fostering an enterprise culture throughout our value chain, sourcing from local businesses where feasible and addressing local concerns through community investment programs. We undertake this through our community investment strategy that supports a wider, holistic approach to local economic development (www.zilojo.com, 2018).
Water accessWater is life. There are many communities in East Africa that have no access to clean, safe water. This is due to reasons such as lack of rainfall and poor infrastructure. In response to this, EABL Foundation has continuously partnered with various agencies in the provision of safe, reliable and sustainable water supply to communities living in water-stressed areas. Through our Water of Life program, we support projects that help combat water poverty by improving access to clean drinking water and sanitation. We continue to invest heavily in water projects that have positive and long-term impact on thousands of people by: reducing the incidence of water-borne diseases and by releasing time otherwise spent by women and children in search of water for alternative income generating activities (www.zilojo.com, 2018).
Focus on the construct of CSR in community development with the aim of building the native community’s read of Illutuality in CSR initiatives. Geographic area Breweries restricted (EABL)-supported Gakoe Water of Life Project in Thika District, Central Province. The establishing of the community’s read of mutuality in EABL’s CSR Gakoe Water of Life Project. The extent of the contribution of each Gakoe community and EABL at the stages of project conceptualization, resource mobilisation, implementation and current operations. Each Gakoe community and EABL extremely contributed in golf shot the exploitation into place. Although the community extremely participated altogether activities of the exploitation, such participation didn’t translate into high levels of engagement of the community by EABL. Athi Water Services regulative Board that to require over the management of the exploitation. Adoption of a development policy that stops the results of free riding on the part of the overall public. Politics ought to be de-linked from the exploitation (Researchkenya.or.ke, 2018).
The social corporate responsibility program gives back to the society is the power of Social Corporate Investment (CSI). Giving back to communities wherever corporations operate has so become associate integral a part of doing business. A clearly articulated and enforced CSI strategy also can result to a robust bottom line, particularly wherever corporations think about the interests of multiple stakeholders. Generally, the thought operates on the principle of corporations plowing into communities during which they operate. Corporations pay a lot of shillings per annum on CSI. Some reveal product to support folks in want, whereas others invest in clean technology to lower their environmental footprint. Taking up responsibility in society builds trust with key stakeholders. And trust is what we want to form support from these stakeholders within the name economy.
The approaches used to develop are that statistics on the future are however not written in stone. They can indeed change. But that depends on what we all do in the present. Corporates are aware of the fundamental role they can play in establishing sustainable water use. With growing concerns on the effect of climate change on water tables throughout East Africa, EABL has for instance embedded environmental sustainability programs that embrace the management of water use with local water challenges in mind (M.eabl.com, 2018).
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Anon, (2018). Blog the access loyalty blog. Available at: https://blog.accessdevelopment.com/what-is-the-definition-of-customer-loyalty Accessed 2 Jun. 2018.
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Appendices Diagram 1 shows the mendlows matrix