Stakeholder Model and Business Leadership Essay Example

Paper Type:  Essay
Pages:  2
Wordcount:  426 Words
Date:  2022-10-25

The management of an organization requires effective strategies to balance between internal and external stakeholders. Every stakeholder holds some power in business and requires to be treated equally and fairly concerning the consumer. Notably, the understanding of the demographics of a region is an essential aspect that can facilitate the process of business management (Al-Shammari & Al Shammari, 2018; McKenzie, 2018). For instance, in a culturally diverse environment, it is crucial for entrepreneurs to understand the effective strategies to serve the two cultures harmoniously. Therefore, once the information about the environment is known, an entrepreneurcan proceed to identify the means to serve the consumers and increase profitabilityeffectively.

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The community in discussion in this paper is Maori who are Tangata whenua, and theoriginal inhabitants of New Zealand. They suffice to constitute much of the population of New Zealand and impact the nation's economy directly and indirectly. Most of the people living in New Zealand are Maori; hence, business operations in the region will be highly dependent on the consuming patterns of the people. The treaty of Waitangi was one of the business treaties that the Maori chiefs signed to; however, it had extensive implication for the Maori people (Fisher, 2013; Seth Mydans, 1988). Hence, any business-like activities should be executed with a critical understanding of the consumers and how it impacts them.

Moreover, it is crucial to understand that leadership should be based on the implementation of the shareholder. Henceforth, the leadership decision can consequently lead to improved performance. For example, Auckland restaurants consider corporate social responsibility to serve the community would accrue consumer satisfaction and increase customer base. Additionally, value maximization isan essential consideration for leadership effectiveness to ensure that increasing profitability does not compromise quality. Also, value maximization can be achieved by cutting costs. That is, reducing the fixed costs such as rent by buying land or moving to cheaper stores. As a result, business operations would improve and profitability increase together with firm performance (Jensen, 2010; Deng, Kang, & Low, 2013).


Al-Shammari, M., & Al Shammari, H. (2018). Biculturalism and entrepreneurship: An introductory research note (A). International Journal of Entrepreneurship, 22(1), 1-11.

Deng, X., Kang, J. K., & Low, B. S. (2013). Corporate social responsibility and stakeholder value maximization: Evidence from mergers. Journal of Financial Economics, 110(1), 87-109.

Du, S., Bhattacharya, C. B., & Sen, S. (2010). Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International journal of management reviews, 12(1), 8-19.

Fisher, M. (2013). Treaty of Waitangi Settlements. The Journal of New Zealand Studies, (16).

McKenzie, E. (2018). The Politics of Activism and Biculturalism: the emergence of bicultural consultancies in New Zealand.

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