Companies are to focus both on internal and external stakeholders when making decisions and implementing new business models. The parties that are directly or indirectly affected by the company’s decisions or contribute to its operations are essential, as the survival of the organization depends on them. In this paper, Google and Amazon will be compared in regard to the different approaches to internal and external stakeholders. The evidence highlights that balancing between satisfying the demands of both parties is vital and correlates with economic success and productivity within the company as well as on the market.
On the one hand, the satisfaction of internal stakeholders impacts the company’s productivity and potential. For example, a motivated workforce is more likely to be successful, while satisfied investors will continue trusting the company with capital. On the other hand, external stakeholders are linked to profit and reputation. Thus, a company that fulfills consumer demand will have high revenue, and one that makes a positive change within the community will be regarded as ethical and worth supporting. As a result, it is impossible to determine which stakeholders are more important, as, without one or the other, an organization will fail. The statement’s truth is highlighted in the significance of all actors when it comes to the operability of a company. In case the needs of certain stakeholders are not balanced with the demands of others, success is difficult to achieve long term.
To highlight the difference between focusing on external and internal stakeholders, the two companies can be differentiated. For example, a corporation known for being effective in maintaining a motivated and happy workforce is Google. According to researchers, allowing workers to be flexible positively affects their productivity and job satisfaction (Ray & Pana-Cryan, 2021). Google is a company that has successfully implemented said value into its corporate approaches. Besides flexibility, Google offers a variety of benefits, from medical insurance and financial bonuses to workspaces in which employees can rewind and relax (Build for everyone, 2023). As a result, it is certain that satisfying the internal stakeholders, specifically the members of the workforce, is a priority that is taken seriously at Google.
On the other end of the spectrum is Amazon. Amazon is another major corporation that, however, is known for its customer service. As customers are external stakeholders, it is certain that this is the segment most effectively addressed within the company. Amazon’s customer service is most evident in the speed of deliveries. The phenomenon has led to consumers expecting the same speed from smaller brands (Vollero et al., 2021). However, the focus on customers has impacted Amazon’s approach to workers. Due to the priorities that have been installed within the organization, workers are experiencing the negative effects of such high demand (Vallas et al., 2022). The work conditions, lack of bonuses, and relatively low salaries are the measures that have to be taken to maximize consumer satisfaction.
Both internal and external stakeholders play a key role in the life of any company. On the one hand, focusing on the workforce and investors without considering customers is a path that does not lead to profit. However, organizations that treat employees badly yet fulfill consumer demand are more likely to experience lower productivity and high employee turnover. Thus, addressing both is essential in establishing long-term efficiency and profit.
References
Build for everyone. (2023). Google Careers. Web.
Ray, T. K., & Pana-Cryan, R. (2021). Work flexibility and work-related well-being. International Journal of Environmental Research and Public Health, 18(6), 3254. Web.
Vallas, S. P., Johnston, H., & Mommadova, Y. (2022). Prime suspect: Mechanisms of labor control at Amazon’s warehouses. Work and Occupations, 49(4), 421–456. Web.
Vollero, A., Sardanelli, D., & Siano, A. (2021). Exploring the role of the Amazon effect on customer expectations: An analysis of user‐generated content in consumer electronics retailing. Journal of Consumer Behaviour. Web.