CUP CAR

CORE ACTIVITY E
MANAGE INTERNAL AND EXTERNAL STAKEHOLDERS

Present By:
Nik Yasmin Suraya Binti Nik Roslan 2023356171
Nurfatin Syuhada Bt Mohd Safri 2022280214
 CORE ACTIVITY E: MANAGE INTERNAL AND EXTERNAL
STAKEHOLDER

I can explain the financial reporting implications of additions to the group.

I can explain the behavioural and transfer pricing issues associated with internal trading.

I can explain the implications of Integrated Reporting for the reporting entity and its
stakeholders.

I can advise on the communication process.

I can advise on the negotiation process.

I can advise on conflict management.

INTRODUCTION
 Introduction
Stakeholders:

• A stakeholder is an individual, group, or organization that has an interest or concern in a particular

project, business, or system.
• Stakeholders can be members of the organization they have a stake in, or they can have no official
affiliation
• Stakeholders can be directly or indirectly affected by the outcomes or activities related to the
project or entity.
• Understanding and managing stakeholders is crucial for the success of a project or business
• Identifying their interests, expectations, and potential impact on the organization helps in making
informed decisions and building positive relationships.
• Effective stakeholder management involves
communication, engagement, and addressing
their concerns to ensure a harmonious and
mutually beneficial relationship.
Internal Stakeholders:
• Definition: Internal stakeholders are individuals or groups within the organization or closely connected to it.
• Examples:
Employees: Those working within the organization at various levels.
Management and Executives: Leaders and decision-makers within the organization.
Board of Directors: Individuals elected or appointed to oversee the organization.
• Influence: Internal stakeholders typically have a direct and significant impact on the organization's
operations, policies, and decision-making processes.

External Stakeholders:
• Definition: External stakeholders are individuals or groups outside the organization who have an interest in
its activities, performance, or outcomes.
• Examples:
Customers: Those who use or purchase the products or services of the organization.
Suppliers: Entities providing goods or services to the organization.
Shareholders/Investors: Individuals or groups with financial investments in the organization.
• Influence: External stakeholders may have indirect influence or impact on the organization. Their interests
are often tied to the organization's success but may not involve direct control over internal operations.
I can explain the financial
reporting implications of
additions to the group.
 I can explain the financial reporting implications of
additions to the group

• Financial reporting is a crucial process for companies and investors, as it provides key
information that shows financial performance over time
• It is the process of documenting and communicating financial activities and
What is Financial Reporting ?

performance over specific time periods, typically on a quarterly or yearly basis.

• Financial reports are also essential in the projections of future profitability, industry
position and growth, and many financial reports are available for public review.
• Without financial reporting, it’s difficult to understand how well a company is
performing from a financial standpoint. Not only are financial reports crucial for
management or investors to assess a business’s financial stability, but they are required
by law for taxes and standard accounting practices.
• So basically, when there are additions to a group, especially in the context of a
corporate structure, there are financial reporting implications that need to be
considered.
• Also, the additions to the group can occur through mergers, acquisitions, or the
formation of joint ventures.
The financial reporting implications may include:
Consolidation of Financial
Statements:
• Financial statements that present the assets,
liabilities, equity, income, expenses and cash
flows of a parent and its subsidiaries as those of
a single economic entity.
• When a new entity is added to the group, its
financial results need to be consolidated with
those of the existing entities in the group.
• For Internal Stakeholder : the financial
statements may need to be consolidated to
present the group's financial position,
performance, and cash flows as a whole.
• For External Stakeholder : They are more
interested in the consolidated financial
statements, which provide a comprehensive
view of the entire dealership group's financial
position, performance, and cash flows.
Fair Value Assessment:
• The assets and liabilities of the
newly added entity may need
to be assessed at fair value as
per accounting standards.
• Fair value adjustments can
impact the reported values of
assets and liabilities in the
consolidated financial
statements.
• Hence, any difference between
the fair value and the carrying
amount is recognized as
goodwill or a gain on bargain
purchase.
Goodwill and Intangible Assets:
• The excess of the purchase price
over the fair value of identifiable net
assets acquired results in the
recognition of goodwill.
• Intangible assets, such as brand
names or patents, acquired in the
process also need to be identified
and recognized.
• For Cuppcar, if there are indications
of impairment, the company may
need to perform impairment testing
and adjust the carrying amount of
goodwill accordingly.
Segment Reporting:
• The addition of a new entity may
result in changes to the reporting
segments of the group, affecting
how financial information is
presented to stakeholders.
• Segment reporting becomes crucial
to highlight the performance of
different business segments within
the group.
• Company may need to disclose
segment information in its financial
statements, providing insights into
the financial performance of each
business segment.
 Communication with Stakeholders:
• Clear and transparent communication with internal
and external stakeholders is essential.
• This may involve explaining the reasons for the
addition to the group, its strategic implications, and
how it aligns with the overall business objectives.
• It help stakeholders understand the impact of these
additions on the company's financial position,
performance, and strategic direction.
• For example, clearly communicate any impact on
earnings per share (EPS). Explain how the additions
to the group influence the company's overall financial
performance and how this is reflected in EPS
calculations.
 I can explain the
behavioural and transfer
pricing issues associated
with internal trading.
BEHAVIOURAL
ISSUE
 BEHAVIOURAL ISSUE
DEFINITION
refer to challenges or complexities
that arise from the behaviour of • It is essential to acknowledge and deal with
individuals or groups in a certain these behavioural problems to create a
situation. favourable and efficient environment,
whether it is inside a company, a project,
or any social context.
Problem arise
• Efficiently handling behavioural aspects
• Conflict of interest enhances collaboration, decision-making,
• Breakdowns in communication and overall achievement of desired results.
• Reluctant to adapt
• Difficulties in teamwork.
 BEHAVIOURAL ISSUE : INTERNAL STAKEHOLDER
An organization's internal stakeholders can create complications through their behavior, attitudes, and interactions, which
can impact workplace culture, teamwork, and organizational performance. Here are some specific internal stakeholder
behavioral issues:

• Barriers to organisational information sharing. Miscommunication, misreading, and ineffective message

COMMUNICATION expression are examples.
• Miscommunication can cause confusion, delays, and blunders. It could cause staff to use inaccurate
BREAKDOWN data, reducing efficiency and job quality.

• The unwillingness of employees or groups to adopt new methods, technology, or organisational

RESISTANCE TO structures.
• Reluctance can limit an organization's growth, idea generation, and ability to respond to new
CHANGE problems and opportunities by encouraging stasis.

• Inefficient department or team cooperation decreases synergy and common goals.

LACK OF TEAM • Lack of collaboration can lead to redundancy, ineffective resource allocation, and inability to exploit
COLLABORATION organisation knowledge. It can also hamper organisation adaptation.

• Refer to when individual or department goals conflict with the organizations.

MISMATCHED • Decision-making worsens when people prioritise their own or their department's aims over the
INCENTIVES company's. Internal competition may replace collaboration.

• Conflict inside an organisation over decision-making power, resulting to a struggle for influence or
POWER control.
STRUGGLES • Power struggles can break up teams and make departments compete for authority. Teamwork and
goal-setting may suffer.
 BEHAVIOURAL ISSUE : EXTERNAL STAKEHOLDER
External stakeholders' behaviour, attitudes, and relationships cause problems for an organisation. These issues can hurt relationships,
cooperation, and the company's external environment management. An in-depth review of external stakeholder behavioural challenges
follows:

• Trust is essential for external connections. Trust from stakeholders may be damaged by perceived
dependability, unpleasant experiences, or lack of openness.
LACK OF TRUST • Lack of trust can inhibit collaboration, cause disagreements, damage the organization's brand, and
reduce client loyalty and partner engagement.

POOR • Maintaining good interactions with external stakeholders is vital. Not understanding and meeting their
needs and expectations leads to poor relationship management.
RELATIONSHIP • Effective relationship management is essential for long-term success and favourable word-of-mouth. It
MANAGEMENT helps avoid team conflict and negative external perceptions.

• External stakeholders may be wary of working with the organisation due to concerns about its reliability,
RESISTANCE TO intentions, or alignment with their goals.
COLLABORATION • Insufficient collaboration may limit innovation, joint ventures, and partnerships . Additionally, it may hinder
the organization's ability to adapt to external changes.
• Understanding external stakeholders' requirements and expectations requires good communication.
COMMUNICATION • Communication gaps can result from unclear communications, inadequate channels, or cultural
GAPS differences.
• Misinterpretations can lead to missed opportunities, poor products, and unpleasant relationships.

ETHICAL • Refer to moral decisions made by organisations having external stakeholders. These issues may include
fair business, environmental responsibility, or social influence.
DILEMMAS • Incorrectly handling ethical issues can damage the company's brand, legal standing, and stakeholder trust.
 BEHAVIOURAL ISSUE ASSOCIATED WITH INTERNAL TRADING
q Internal traders may put personal gain ahead of company aims.
Conflict of Interest q Impact: Internal stakeholders may lose trust and external stakeholders like customers, suppliers,
and investors may see this negatively.
q Untransparent internal trading can damage confidence and understanding among employees
Lack of and stakeholders.
Transparency q Impact: Lack of openness can lead to misunderstandings, low employee morale, and
stakeholder distrust.
q Internal trading may provide certain employees an unfair advantage, causing anger and
discontent.
Unfair Advantage q Impact: Internal disagreements may limit cooperation. Unfair tactics can damage relationships
with partners, suppliers, and customers.
q Internal trading may breach internal or external policies, causing legal and compliance
Violation of Policies concerns.
and Regulations q Impact: This can harm the company's reputation, legal standing, and relationships with
external stakeholders who may perceive it as unethical or untrustworthy.
q Internal trading might distract from the company's core business.
Loss of Focus on
q Impact: This may lower performance, harming relationships with external stakeholders that
Core Business depend on the organization's fundamental skills
q Internal trading may be seen as favouritism, lowering morale and job satisfaction.
Employee Morale
q Impact: Lower employee happiness can lower productivity and innovation, which may
and Job Satisfaction undermine the organization's ability to satisfy external stakeholders.
CUPPCAR Behavioural Issue Associated With Internal Trading
Issue
q Salespeople or finance
Conflict of managers may prioritise
Interest in Sales personal commissions over
and Financing customer or dealership
interests in internal trade.
q Undocumented vehicle trade
between departments or
locations may manipulate
Inventory
inventory counts.
Manipulation
q Internal trading or unfair
Unfair Allocation distribution of sales leads and
of Leads and opportunities among sales
Opportunities agents or departments
Impact
q Unethical sales, unhappy customers, and
dealership reputation loss can result.
q Customers and financiers may lose faith
in CUPPCAR’s.
q Financial reporting accuracy may be
affected, posing legal and regulatory
risks.
q Investors and financial organisations
need precise financial data to make
decisions.
q This can cause internal disagreements,
low employee morale, and lost business.
q Manufacturers may worry about the
CUPPCAR’s internal management.
CUPPCAR Behavioural Issue Associated With Internal Trading
Issue
q Employees trading internally
Lack of Employee may not be properly taught or
Training and informed of the risks.
Awareness
q Internal trading practices that
Impact on prioritise short-term gains
Customer over long-term client
Experience connections might hurt
customer experience.
q Manufacturers generally
Non-Compliance create dealer agreements
and restrictions.
with
Manufacturer q Internal trading practices that
Guidelines breach these criteria can
result in noncompliance.
Impact
q Unintentional policy infractions can hurt
the CUPPCAR's operations and
relationships with external stakeholders
who expect professionalism and
compliance.
q Dissatisfied consumers may complain
online or through word of mouth, hurting
the dealership's reputation and buyer
relations
q Manufacturers may fine or remove
incentives.
q Manufacturers are major CUPPCAR’s
partners, therefore this may influence
external stakeholders
TRANSFER
PRICING ISSUE
 TRANSFER PRICING ISSUE
DEFINITION
The pricing of products, services, or intangible property between connected
enterprise entities. Setting prices for transactions between divisions or
subsidiaries is vital to multinational corporations' functioning .

Problem arise
Transfer pricing concerns affect financial reporting, tax liabilities, and business
performance, thus managing them is crucial for harmonising internal and external
stakeholders
 TRANSFER PRICING ISSUE : INTERNAL STAKEHOLDER
Managing transfer pricing difficulties connected to internal stakeholders' main operations requires resolving organisational
challenges when calculating transaction prices between divisions or subsidiaries. Management of internal stakeholders raises
transfer pricing issues:

• Challenge: Independent company divisions must coordinate pricing to guarantee cost-revenue

fairness. Fair transfer prices that reflect the value of products, services, and intellectual property are
FAIR ALLOCATION OF
difficult.
COSTS AND REVENUE • Solution: Use a transparent cost allocation and revenue calculation method to ensure transfer prices
reflect internal stakeholder contributions.
• Challenge: Transfer pricing concerns can cause disagreements and miscoordination between
COORDINATION AND business units.
COLLABORATION • Solution: Encourage open communication and create transfer price criteria to promote collaboration.
Establish clear dispute resolution procedures and promote a cohesive approach to organisational goals.

RESOURCE • Challenge: Inconsistent transfer pricing may affect resource allocation decisions, resulting in
inefficiencies or underutilization.
ALLOCATION AND • Solution: Create a resource allocation strategy that incorporates transfer pricing's impact on business
BUDGETING unit profitability. Make budgeting transparent and consider transfer pricing.
• Challenge: Without unambiguous intercompany agreements, internal stakeholders may decide transfer
INTERCOMPANY prices without guidance.
AGREEMENTS • Solution: Create thorough intercompany agreements that govern business unit interactions. Clarify
internal stakeholder roles, duties, and expectations.
• Challenge: Without auditing, internal transfer pricing policies are hard to follow.
INTERNAL AUDITING • Solution: Conduct frequent internal audits to guarantee transfer price compliance. Train internal
AND COMPLIANCE stakeholders on compliance and best practices.
 TRANSFER PRICING ISSUE : EXTERNAL STAKEHOLDER
Addressing pricing concerns with suppliers, consumers, and other business partners is crucial to managing transfer pricing issues
related to external stakeholders' primary operations. Fairness, regulation compliance, and transparency matter. Transfer pricing
difficulties arise when managing external stakeholders:

• Challenge: Transfer pricing laws differ per jurisdiction. Noncompliance may result in legal and financial sanctions.
REGULATORY
COMPLIANCE • Solution: Monitor worldwide and local tax rules and comply with transfer pricing regulations. To handle complex
regulatory regimes, consult tax specialists.
• Challenge: Transfer pricing must be determined as if transactions were between unconnected parties, under the
ARM’S LENGTH arm's length concept. Related entities can make this difficult.
PRINCIPLE
• Solution: Justify transfer pricing decisions and processes, ensuring prices align with open market transactions.
• Challenge: Determining the fair market value of commodities, services, or intellectual property can be subjective
FAIR MARKET VALUE and cause stakeholder disagreements.

DETERMINATION • Solution: Set fair market valuations using accurate and objective procedures. Benchmarking, industry
comparisons, and other market-based methods can inform pricing decisions.
• Challenge: Transfer pricing affects supplier-customer relationships. Unfair pricing can damage relationships and
SUPPLIER AND cause frustration.
CUSTOMER
• Solution: Transfer pricing technique should be disclosed to external parties. Work with suppliers and customers to
RELATIONSHIP identify price that benefits both parties.
• Challenge: Exchange rate swings might affect international transfer price, causing currency conflicts.
CURRENCY
FLUCTUATIONS • Solution: Use stable currencies for pricing or include exchange rate changes in transfer pricing agreements to
reduce currency risk.
 TRANSFER PRICING ISSUE ASSOCIATED WITH INTERNAL TRADING
Transfer pricing might pose many issues when it comes to internal trading within a multinational corporation (MNE). These issues stem from the
necessity to determine equitable and independent pricing for transactions between affiliated businesses within the same corporate group. Below
are several significant obstacles related to transfer pricing within the framework of internal trading:

q Challenge: MNEs may influence transfer pricing to shift profits from high-tax to low-tax areas, avoiding taxes.
Tax Optimization
q Solution: Transfer pricing procedures that follow the arm's length principle and local tax laws can reduce tax
and Profit Shifting optimisation problems.
q Challenge: Internal transactions might involve complex supplier chains, intercompany services, and intangible
Complexity of asset transfers. Choosing a transfer price for such transactions is difficult.
Transactions q Solution: Analysing the functions, assets, and risks of each entity engaged in the transaction helps determine
a reasonable transfer price.
q Challenge: Transfer pricing laws and arm's length interpretations vary per country. Understanding and
Divergence in Tax following numerous tax regulations is difficult.
Laws q Solution: Knowing local tax rules, talking to tax authorities, and getting expert guidance can help you
negotiate transfer pricing requirements across jurisdictions.
q Challenge: Benchmarking unique or private products and services might be difficult to find comparable
transactions between unrelated companies.
Lack of Comparable q Solution: Companies can find and compare comparable transactions using transfer pricing algorithms and
Transactions databases. Where applicable, the Comparable Uncontrolled Price (CUP) technique compares controlled
transaction prices to similar transactions between unrelated parties.
q Challenge: Market, technical, and regulatory changes can quickly affect transfer pricing policy accuracy and
Changing Business usefulness.
Environment q Solution: Regularly assessing and modifying transfer pricing policies to reflect company changes ensures fair
and compliant pricing.
CUPPCAR
Transfer Pricing Issue Associated With Internal Trading
Challenges
q Customers may be price-
sensitive, and internal transfer
pricing or unjust pricing might
External Customer
damage the dealership's
Relations
reputation.
q Tax and regulatory authorities
Regulatory may review transfer pricing
Compliance strategies for arm's length
compliance
q Sales, finance, and operations
may have arguing against
Internal
internal trading goals.
Collaboration
Solution
q Communicating pricing factors to clients
and having transparent pricing rules may
establish confidence.
q Clear pricing and value disclosures for
new and secondhand autos can improve
customer satisfaction.
q Documenting transfer pricing procedures
in compliance with local tax legislation and
communicating with tax authorities helps
reduce regulatory risks.
q Promote cross-functional cooperation to
harmonise internal strategies.
q Set explicit price criteria and make sure all
departments understand transfer pricing.
CUPPCAR
Transfer Pricing Issue Associated With Internal Trading
Challenges
q Assessing condition, mileage,
and other elements to
Used Car Valuation determine fair market value for
used cars in internal
transactions is difficult.
q Communicating with
suppliers, as CUPPCAR’s is
Communication with part of a bigger automotive
Suppliers group, is essential to ensure
fair and market-competitive
procurement pricing.
q Transfer pricing and internal
Training and trading may be confusing to
Awareness employees.
Solution
q Assessing condition, mileage, and other
elements to determine fair market value
for used cars in internal transactions is
difficult.
q Open engagement with suppliers and
negotiate market-based procurement
prices.
q Make sure procurement follows the
dealership's transfer price policies.
q Train pricing decision-makers and
transaction-makers on transfer pricing
restrictions and their potential effects on
internal and external stakeholders
 I can explain the
implications of Integrated
Reporting for the reporting
entity and its stakeholders.
 INTEGRATED REPORTING (IR)
DEFINITION
Integrated Reporting (IR) is a corporate reporting methodology that endeavours to
present a comprehensive assessment of an entity's performance through the
amalgamation of financial and non-financial data.

The primary objective is to convey the way an organisation generates long-term

value and its influence on diverse types of capital—human, financial, intellectual, and
environmental.
 REPORTING ENTITY
DEFINITION
The reporting entity refers to the specific business or organisation for which financial
statements and reports are specifically prepared.

Stakeholders
DEFINITION
A stakeholder is a person, group, or organisation that cares about a firm or project's
actions, results, or performance. Internal or external stakeholders can influence or
effect the organization's actions. Business, project management, and organisational
governance employ stakeholders to identify and manage relationships with those
who can affect or be affected by an organization's operations.
THE
IMPLICATIONS
OF INTEGRATED
REPORTING (IR)
FOR THE
REPORTING
ENTITY
 THE IMPLICATIONS OF INTEGRATED REPORTING (IR) FOR THE
REPORTING ENTITY

q IR requires the reporting entity to evaluate its financial, human, intellectual, social, and natural capital.
Holistic Value
Creation q This comprehensive strategy ensures that the organisation examines more concerns in its decision-
making process, promoting sustainable value.
q Integration of strategy, governance, risk management, and performance measures is promoted by
Strategic Alignment integrated reporting.
and Integration
q This connection strengthens organisational management, eliminating silos and improving efficiency.
q IR fosters long-term thinking by integrating financial and non-financial data.
Long-Term
Perspective q The reporting institution is encouraged to analyse how its activities affect future success, developing
resilience and flexibility to changing economic, social, and environmental conditions.
q IR improves risk identification and management by integrating data.
Improved Risk
Management q The reporting entity can improve its risk management plan by examining more aspects, minimising the
possibility of unexpected issues.
q Integrated Reporting needs clear information regarding the organization's stakeholder and social
effect.
Enhanced
Stakeholder Relations q Transparency builds confidence and credibility among stakeholders, strengthening connections with
consumers, employees, investors, and the community.
 The implication of IR for the Reporting Entity in Dealership:
CUPPCAR
q An IR-practicing CUPPCAR’S would evaluate non-financial variables as well as
Holistic revenue and profit.
Performance
Metrics q For instance, it may assess customer satisfactions, employee engagement,
and environmental effect.
q CUPPCAR’s IR may show how its business strategy supports sustainability.
Strategic
Sustainability q The CUPPCAR might pledge to provide electric and hybrid vehicles, reduce
Alignment carbon emissions, and train employees for sustainable practices.
q IR could highlight the CUPPCAR’s HR investment.

Long-Term q This may involve training, career development, and employee satisfaction
Investment in surveys.
Human Capital
q Such information might show the company's dedication to training and
motivating employees for long-term success.
q CUPPCAR may use IR to convey its supplier chain risk management efforts.
Risk Management
in Supply Chain q It could explore inventory mitigation measures to provide a reliable car supply
for clients during worldwide events.
q IR would highlight CUPPCAR stakeholder engagement.
Stakeholder q This could include local community connections, environmental organisation
Engagement partnerships, and customer feedback methods to improve customer
experience.
THE
IMPLICATIONS
OF INTEGRATED
REPORTING (IR)
FOR THE
STAKEHOLDER
 THE IMPLICATIONS OF INTEGRATED REPORTING (IR) FOR THE
STAKEHOLDERS

q Stakeholders get more than financial indicators.

Comprehensive
Decision Support q This contains information on environmental and social implications, corporate governance, and
sustainable value creation. The information helps stakeholders make better decisions.
q IR's non-financial indicators help stakeholders evaluate the reporting entity's sustainability.
Sustainability
Assessment q Socially responsible investors and consumers value ethical and sustainable businesses, making this
crucial.
q An organization's beliefs and ideals are better understood using IR.
Alignment with Values q Customers and employees can identify with organisations that reflect their values, improving employee
happiness, brand loyalty, and consumer views.
q IR helps investors understand an organization's long-term viability and resiliency.
Long-Term
Investment
q The focus on long-term value development and risk management helps investors make informed
Considerations investment decisions.
q IR engages and holds stakeholders accountable.
Engagement and
Accountability q IR organisations are more likely to involve stakeholders in decision-making and address their
concerns. For stakeholders, this inclusive approach improves reporting entity accountability.
 The implication of IR for the Stakeholders in dealership:
CUPPCAR
q Customers and prospective car buyers would have more information.
Comprehensive
Information for q Beyond cost and model specifications, they might evaluate CUPPCAR's ethics,
Consumers sustainability, and customer satisfaction to influence their purchase.
q Investors interested in ecologically and socially responsible actions can evaluate the
Investor Confidence
dealership's integrated report.
in Sustainability
Practices q This transparency can boost investor trust in the CUPPCAR's long-term survival.
q The CUPPCAR's commitment to its employees can be seen by job seekers and
Employee employees.
Satisfaction and
Talent Attraction q An IR may include training, career promotion, and workplace happiness programmes
to recruit and retain people.
q Local communities can assess the CUPPCAR's environmental and community
impact.
Community Impact
q An IR might feature tree planting, community events, and charity donations to boost
the dealership's reputation.
q CUPPCAR may create consumer trust by being upfront about company methods,
Consumer Trust and ethics, and customer satisfaction.
Loyalty
q Trust boosts consumer loyalty, word-of-mouth marketing, and business success.
 I can advise on the
communication process.
 I can advise on the communication
process.

● The communication process between stakeholders involves the

exchange of information, ideas, and feedback among individuals or
groups who have an interest or concern in a particular project,
organization, or system.
● Effective communication is crucial for building relationships,
addressing concerns, and ensuring that stakeholders are informed
and engaged.
● However, the are difference of the communication process were,
Internal Stakeholder : Internal communication occurs when the
members of an organization exchange
information with each other

External Stakeholder : Function of marketing plan, where’s The

messages sent are crafted towards a specific
audience with the goal of earning new
customers and increasing revenue
 Step of communication process – Internal
Stakeholder

1. Team Alignment:

● Team alignment is the idea that team member within the workforce collaborate to
work toward a shared goal
● The lever to increased productivity, performance, and employee engagement and
when the teams are aligned, communication, collaboration, productivity, and
efficiency thrive
● Cuppcar have to ensure that all dealership staff understands the overall mission,
vision, and goals of the organization.
● Regularly communicate updates on dealership performance, sales targets, and
customer satisfaction metrics.

2. Sales and service Integration

● It is a process that allows marketing and sales teams to work together to generate
awareness for a brand or product to a target audience
● It can foster communication and collaboration between sales and service
departments.
● Provide regular updates on sales promotions, new vehicle models, and service
offerings to ensure staff is well-informed.
 Step of communication process – Internal
Stakeholder

3. Training and Development:

● It is the educational activities within a company created to enhance the

knowledge and skills of employees while providing information and instruction on
how to better perform specific tasks.
● Company can conduct regular training programs to keep staff updated on
product knowledge, industry trends, and customer service skills.
● Communicate the importance of ongoing professional development to motivate
and engage employees.

4. Employee Recognition:

● The act of showing appreciation and acknowledgement for employees for

contributions to the business
● Company must recognize and celebrate the achievements and hard work of
dealership staff.
● Acknowledging employees' contributions fosters a positive work environment.
● When the company reward employees for their contributions, they feel ownership
and pride and are willing to work just as hard on their work
 Step of communication process – External
Stakeholder

1. Customer Communication:

● Customer communication skills are important for support, marketing, and sales
teams
● Company must implement a customer communication strategy that includes
regular updates on service appointments, new vehicle launches, and promotions.
● Seek feedback through surveys and actively respond to customer inquiries and
concerns.

2. Supplier relations:

● The process of communication, negotiation, and relationship-building with the

suppliers that provide goods and services to an organization.
● Communicate effectively with suppliers regarding inventory levels, order fulfillment,
and any changes in product availability.
● Establish clear communication channels to address issues promptly and maintain
strong partnerships.
● Good working relationships with suppliers will not only deliver cost savings, but
they will also reduce availability problems, delays and quality issues.
 Step of communication process – External
Stakeholder
3. Community Engagement:

● Strategic process with the specific purpose of working with identified groups of
people
● Company must engage with the local community through events, sponsorships,
and community outreach programs.
● Communicate the dealership's commitment to corporate social responsibility and
its positive impact on the community.
● Community engagement helps shape your dealership's identity and is integral to
your overall branding strategy

4. Government and Regulatory Compliance:

● Regulatory bodies have the authority to enforce compliance through inspections,

audits, and penalties for non-compliance
● This automotive industry is subject to various laws, regulations, and standards that
ensure the safety of the public and the environment.
● Communicate compliance measures to both internal staff and external
stakeholders to ensure adherence to legal requirements.
● Also, regulatory compliance serves to protect the interests of various
stakeholders, including customers, employees, investors, and the public.
 I can advise on the
negotiation process.
 I can advise on the negotiation process

● Negotiation between stakeholders is a process through which

individuals or groups with varying interests, needs, and
objectives seek to reach agreements or compromises that are
mutually acceptable

● In a business or project context, negotiation often plays a crucial

role in managing conflicting interests and ensuring that all
stakeholders are satisfied with the outcomes.

● Establishing a structured negotiation process between

stakeholders can offer numerous benefits, contributing to
effective decision-making, and overall success in organizational
endeavors
 Advantages of negotiation process

● Conflict Resolution: a platform for stakeholders to address conflicts

and disagreements in a controlled and constructive manner.

● Mutual Understanding: The mutual understanding creates a

foundation for collaboration, cooperation, and the development of
shared goals.

● Enhanced Decision-Making: The process facilitates informed

decision-making by providing a forum for stakeholders to exchange
information, ideas, and perspectives

● Relationship Building: Positive and constructive negotiations create a

conducive environment for ongoing collaboration, trust, and
partnerships.
 I can advise on the negotiation
process – Internal Stakeholder

Understand Interests Identify Common Establish Clear

and Objectives: Ground: Communication Channels:

Before entering Find areas of common Facilitate open and

negotiations, thoroughly ground where the interests transparent communication
understand the interests of different internal channels within the
and objectives of internal stakeholders align. organization. Ensure that
stakeholders. This includes Emphasize shared goals to all relevant parties are well-
departments, teams, and build a collaborative informed about the
individuals affected by the mindset. negotiation process and its
core activity. implications.
 I can advise on the negotiation
process – External Stakeholder

Research and Understand Cultivate Relationships: Clarify Objectives and

External Stakeholders: Interests:

Conduct thorough Build and cultivate Clearly articulate your

research to understand the relationships with external
needs, motivations, and stakeholders before
constraints of external entering formal
stakeholders. This negotiations. Establishing
information is crucial for trust can positively
effective negotiation. influence the negotiation
process.
organization's objectives
and interests during
negotiations. Ensure that
external stakeholders
understand the value
proposition.
I can advise on conflict
management.
 CONFLICT MANAGEMENT
Conflict management entails the implementation of methods and techniques to prevent, reduce, or resolve disputes among individuals or groups
with a vested interest in a certain situation. It encompasses strategies for communication, negotiation, and problem-solving to prevent conflicts
from escalating and adversely affecting the organization's fundamental operations.

Enhanced Collaboration Increased Productivity

Effective conflict resolution promotes a Promptly resolving disagreements enhances

cooperative atmosphere in which stakeholders productivity by preventing workflow
may collaborate seamlessly to accomplish disruptions, enabling teams to maintain focus
shared objectives. on their key activities and objectives.

IMPORTANT
Positive Organizational Culture Improved Decision Making

Proficient conflict resolution fosters the Efficient conflict management fosters

cultivation of a constructive and transparent reasonable and objective decision-making,
organisational culture, wherein employees and resulting in superior outcomes for the
stakeholders perceive a sense of worth and organisation.
attentiveness.
 CONFLICT MANAGEMENT
Challenges
Communication Barriers
miscommunication or a lack of communication,
can be a significant obstacle in conflict
management. Stakeholders may possess
divergent viewpoints or may need a complete
comprehension of one another's stances.
Power Dynamic
Unequal distribution of power among
stakeholders can result in disputes. Rectifying
these disparities and guaranteeing equitable
representation can be intricate.
Conflict of Interest
Stakeholders frequently possess contrasting
interests, and finding a resolution for these
interests can be difficult. Discovering a
mutually agreeable position that meets the
needs of all parties involved may necessitate
innovative and imaginative resolutions.
Cultural and Diversity Issues
can give rise to conflicts inside organisations
that have a wide range of stakeholders, due to
cultural disparities or misunderstandings.
Acknowledging and valuing variety is essential
when it comes to effectively managing conflicts
 CONFLICT MANAGEMENT

SOLUTIONS
Effective Communication Conflict Resolution Training

• Conduct a cross-functional meeting

where each team can express their
concerns and priorities.
• Implement a regular update system to
ensure all stakeholders are aware of
the progress and challenges
• Identify common goals that align with
the interests of all stakeholders.
• Find compromises that meet the needs
of both parties

Power Dynamic Cultural and Diversity Issues

• Ensure representation from all

• Provide cultural sensitivity training to
enhance understanding and
stakeholders in decision-making
cooperation.
processes.
• Foster an inclusive culture where all
• Foster an inclusive environment that
celebrates diversity.
voices are heard and respected
 References
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https://www.techtarget.com/searchcio/definition/stakeholder#:~:text=Internal%20stakeholders%20are%20those%20
within,of%20directors%2C%20donors%20and%20investors.
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reporting#:~:text=Financial%20reporting%20is%20important%20for,invest%20or%20loan%20you%20money.
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Stakeholder Plan Template]. Swift Digital. https://swiftdigital.com.au/blog/communication-with-internal-and-external-
stakeholders/
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quest%20customers.
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stakeholder information needs on the disclosure of social information in a state-owned enterprise", Meditari
Accountancy Research, Vol. 27 No. 4, pp. 556-579. https://doi.org/10.1108/MEDAR-01-2019-0436
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ofs/managing-internal-external-stakeholders
• Choi, Y., & Ha, J. (2018). Job satisfaction and workproductivity: The role of conflict-management culture. Social
Behavior and Personality: an international journal, 46(7), 1101-1110
• Coggburn, J. D., Battaglio, R. P., & Bradbury, M. D. (2014). Constructive Conflict Management and Employee
Perception of Performance in the U.S Federal Government. International Journal of Organization Theory and
Behaviour, 17(4), 500–532. http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=94796614&site=ehost-
live
THANK YOU <3