Reed Elsevier is a leading provider of professional information solutions to organizations around the world. It publishes journals, books and databases and manages exhibitions and events. It is well known titles such as New Scientist and The Lancet appear both in print and online (Plunkett, 2008). It has a worldwide customer base working in many fields, including science, research and the law, as well as in public and academic libraries and commercial organizations. Reed Elsevier was formed in 1993 when the businesses of the British publisher Reed International and the Dutch publisher Elsevier NV merged.
The Reeds were Methodists and took a philanthropic approach to the business. This is present-day idea of Corporate Social Responsibility (CSR) within the company.
They promoted health and safety for their workers and better standards of living.
To focus on customer needs the company has five divisions:
- Elsevier – publishing science and health information to promote research and discovery
- LexisNexis Risk Solutions – provides data and analytics that allow customers to evaluate and manage risks associated with transactions and to improve performance
- Reed Business Information – producing trade journals, blogs and web directories to deliver information to users worldwide.
- LexisNexis Legal & Professional – provides legal, tax, regulatory news and business information and analysis to legal, corporate, government, accounting among others.
- Reed Exhibitions – organizing events, exhibitions and conferences.
- Using a diagram to illustrate the main internal and external stakeholders in Reed Elsevier
Internal stakeholders are individuals or groups inside a business while external stakeholders are groups or individuals outside the business.
- Explain the difference between a stakeholder and a shareholder.
A shareholder is an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation, this are the actual owners of the corporation. The ownership of a firm is defined by how many shares an individual owns. A stakeholder is a person or individual who has an interest in a given organization or institution and can affect or be affected by an institution or organization. The government is a major stake holder in business operations in any country since tax is the main source of government income in many countries. They therefore must ensure suitable business and political environment.
- Analyses of the potential conflict between different groups of stakeholders. Explain why it is important for Reed Elsevier to engage in consultation with them.
Shareholders expect the business to make a profit and receive a return on their investments. Employees require good working conditions if they are to be retained.
Investors may want to see evidence of how a company responds to environmental issues before committing money to the business (Sachs, Ruhli & Kern, 2009).
Conflicts between groups of stake holders can lead to paralyses in the management infrastructure and finally to the failure of the same. It is therefore very important that Reed Elsevier consults all the stake holders in a bid to keep the expectations of the firm alive.
- Evaluation of the benefits to a business of focusing on the needs of all stakeholders.
A business must be accountable to a society or community surrounding it and give back something. It values the people that are working for that business which is a stakeholder focus according to Reed Elsevier. For instance, discounts, commissions, incentives that help boost the morale of workers. It leads to motivated and royal employees who are encouraged and this lead to efficiency at work place. Efficiency is primal to boosting the profit margin and helps to capture a large market share. Attracting and keeping good employees means that the business is going to achieve its objectives and meet expectations of customers. The business is able to produce products and services that customers want and this is achieved through listening to customers and coming up with innovative ideas to fulfill their wishes.
Plunkett, J. W. (2008). Plunkett’s E-Commerce & Internet Business Almanac 2008. Houston, Tex: Plunkett Research, Ltd.
Sachs, S., Ruhli, E., & Kern, I. (2009). Sustainable Success With Stakeholders: The untapped potential. Basingstoke: Palgrave Macmillan.