• Internal Code :
  • Subject Code : PPMP20014
  • University : Central Queensland University
  • Subject Name : Project Management 3

Economic and Business (Supply Chain)

Table of Contents

Stakeholder Analysis.

Interest and power of stakeholder

Role in terms of impacting the complexity.

Interconnectivity and Uncertainty.

System Management

Handling of situation.

How would system thinking work?.

Leadership.

Conclusion.

Stakeholder Analysis

The different stakeholders involved in this entire process of business are:

  1. Government

They decide the rules and regulations regarding the business and no business can break that rules. They are the ones who keep everything in control and in place.

  1. Logistics

They are responsible for transferring items from one place to another. They keep up item from one place and move it the other. They keep the entire supply chain in place. Without them, the entire system would break down.

  1. Buyers

They are the ultimate users of the business. They decide the demand of the product and hence to a very large extend control the price of the product.

  1. Manufactures

They produce the products as and when required. They decide the supply of a particular product in the market (Lemiejut, 2019.

  1. Sellers

They are the connectors between the buyers and the manufactures. They take the goods from manufactures and make them available to the buyers.

Interest and Power of Stakeholder

Stakeholder

Interest

Power

Government

High

High

Logistics

Low

Medium

Manufactures

High

Medium

Buyers

Medium

High

Sellers

Medium

Low

From the above table, it can be seen that there is no co-relation in interest and the power. In other words, neither they are directly dependent nor inversely dependent. For instance, while the government has both high power and high interest while on the other hand, buyers have medium interest and high power. If seen from seller viewpoint, the sellers have medium interest and low power. Hence, it is not possible to deduct the exact co-relation between interest and power. While the stakeholders whose income is highly dependent on a business have high interest while the parties, which can impact supply and demand heavily has high power and vice e versa holds true for them.

Role in Terms of Impacting the Complexity

  1. Government

It has quite a very large role because its every decision can change the entire scenario of the business. It can be said that they are primary stakeholder in the entire game of business.

  1. Logistics

They are also important in the business. As without them, it is impossible to transport goods from one place to another. Although, they as a single unit do not impact the supply chain but together as an entire function can disrupt the entire supply chain.

  1. Buyers

They are the ones who ultimately consume the goods. If they stop consuming the goods, the entire system would be disrupted. Hence, they determine the scope of the entire supply chain in place. 

  1. Manufactures

Although, they have less control to impact the complexity of the business. This is because to one buyer there are several manufactures that can satisfy the demand. In other words, they are easily replaceable.

  1. Sellers

They also have less control in the entire supply chain. Because neither they control the demand nor the supply. Also, at the same time they too are easily replaceable to satisfy the purpose.

Interconnectivity and Uncertainty

Entire business is dependent upon how well the different units are connected to each other and how well they operate. If a single link breaks in the system, the entire supply chain is disrupted. Hence, it is very important to have interconnectivity among different units.

Demand and supply is never consistent among different segments of business. For essential goods, demand and supply is more or less consistent because they will consume irrespective of the situation. But for non-essential goods, supply and demand is not consistent. They depend on the situation of the economy. If the economy is flourishing well, the demand is more than supply and vice e versa.

System Management

By system management, one means seeing the entire situation as whole rather than seeing it in parts (Jackson, 2019). Undoubtedly, the system management will be a very useful approach to handle the entire situation as whole. This is because the ultimate objective is the growth of the business rather than the growth of a particular stakeholder. In other words, we want the business to prosper rather than an entity to do well. If the situation is seen from holistic view, the pain points of the system would be resolved rather than of the stakeholders.

Handling of Situation

The very first task that would have been done is to analyse the problem area. Anything that is impacting the productivity and efficiency of the system as whole is seen as a bottleneck. After that, the segregation of the problems will be done according to the various listed criteria’s. Then step by step solution approach will be followed i.e. handle one problem at a time. Problems picked up will be sequence in terms of the impact caused on the situation. For the ones where the impact is large, they will be picked up at first.

How Would System Thinking Work?

The system thinking would have multiple benefits rather than just one:

  • It would help to reduce the additional costs of the projects which happen due to improper planning

  • It helps to improve the overall quality of the product and improve the coordination among the different parties (Graham, 2019)

  • It will help in increasing the overall understanding of the project inclusive of the stakeholder

The idea is not to improve the traditional approaches and implement system thinking. But along with the traditional approaches, implement the systems thinking. They should go hand in hand to improve the overall efficiency.

Leadership

As a leader, the first task is to manage the things effectively. It would have been ensured that the things are smooth in the entire supply chain. Secondly, system thinking / management would have been implemented. In other words, scenarios would have been seen as a whole rather than in pieces or parts. Third, the focus would be shifted to bottom line rather than the top line. Because ultimately, it is the profits that count rather than the revenue incurred. Lastly, to increase the operational efficiency as for any business it is quite important to have supply chain in place.

Conclusion

In any business there are several stakeholders involved but the degree of involvement for every stakeholder is different depending on the two important factors: one is control and the second is power. There is no co-relation (neither direct nor inverse) among the power and interest of different stakeholders. Also, the impact on the complexity is no also different for each stakeholder. System thinking is a very important approach that needs to be followed. This is because no longer business operates in silos rather a whole. Hence, it is high time to complement traditional practices along with system thinking. This is only possible if there is a strong leadership in place, therefore is quite important to have a very strong leadership that is capable of transforming the system in place.

References:

 Lemiejux, Normand .(2019). Stakeholder Analysis: Definitions, Tools and Techniques. Boréalis. Retrieved 2019-10-01

Turner, J.R.; Grude, K.V.; Thurloway, L. (2019). The Project Manager As Change Agent: Leadership, Influence and Negotiation. McGraw-Hill Book Co Ltd. ISBN 9780077077419.

letcher, A.; Guthrie, J.; Steane, P.; et al. (2013). Mapping stakeholder perceptions for a third sector organization". Journal of Intellectual Capital. 4 (4): 505–27. doi:10.1108/14691930310504536.

Graham, Philip (2019). Critical Systems Theory: A Political Economy of Language, Thought, and Technology, in: Communication Research, Vol. 26, No. 4, 482–507.

Ivanov, Kristo (2011). Critical systems thinking and information technology. - In J. of Applied Systems Analysis, 18, 39–55. (ISSN 0308-9541).

Jackson, Michael C. (2019), Critical Systems Thinking and the Management of Complexity, Wiley

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Project Management Assignment Help

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