Paper Example. Strategic Management Studies

The paper critically analyses the stakeholder management of earning Misses of Fortune's 'Most Admired Companies' intending to identify the various stakeholder exchanges and corporate reputation. Many corporations engage in exchange relationships with different appropriate stakeholders who have an impact on business operations. Despite the efforts that the organizations are making, the management has not covered how stakeholders can help improve profits and product costs. The author examines and proposes solutions to the gap in research on the role of stakeholders in improving profits. The author used a psychological approach to identify the character traits and cognitive perspectives of how relationships between the organizations help build a favorable reputation for the company and increase profits. For the case study on the quarterly earnings reports of the company with an emphasis on earning misses. It was identified that the stakeholder's interpretation and comments about a particular company determine the kind of reputation the company will have. If the stakeholders are satisfied with the products and services of the company, they will therefore create a good standing of the company, thus improving profits and competitive advantage.

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The paper critically analyses the importance of having stakeholder relationships in the organization. The author investigated the psychological perception of different stakeholders across the organization by reviewing the quarterly earnings of the company to identify the earning misses. Earning misses show that the company has a divergence in stock control, stock exchange, and, most importantly, stakeholder reviews. The review indicates that the single failed exchange between the stakeholders and the corporation will lead to damage to the reputation of the company in question. In this regard, if the company reports a short of quarterly earnings from the stock analysis shows that there was a failed exchange between that particular organization and the stakeholders, thus impacting negatively on the reputation leading to earning misses.

The paper also analyses how social and historical perspectives affect the relationship between the stakeholders and the corporation and how these perspectives can be used to develop policies to aid in building a good relationship. From the analysis, it was identified that stakeholders have different perceptions of the company's management, depending on their character traits. Thus making creation and keeping the relations a continuous process the company needs to continuously learn and understand its stakeholders for proper inclusion in the managerial decision-making process. From the Journal, therefore, it is clear that understanding the historical, psychological, and social factors of the company and the stakeholders will help in a good exchange, thus building a good company reputation.

Relevance

From the above analysis, the Journal is relevant for my research paper on Exploring critical success factors for stakeholder management in attracting investments to the oil and gas industry as it identifies the role of the stakeholders in keeping the business process in line. The Journal describes how the different factors that affect the relationship between the corporation and the stakeholders can be used positively to build a good stakeholder relationship. My research will be about the success factors for stakeholder management; therefore, the Journal gives a clear identification of how the stakeholders affect the company's reputation.

References

Failed Stakeholder Exchanges and Corporate Reputation: The Case of Earnings Misses. Academy of Management Journal, 60(3), 880-903.