Internal and External Stakeholder Analysis: JB Hi-Fi Assignment [Solved]

Internal and External Stakeholder Analysis: JB Hi-Fi

Executive Summary

A stakeholder analysis of JB Hi-Fi provides relevant information regarding the internal and external environment of the business that defines the internal and external stakeholders. Major key points in the report are as follows:

  • Key functional areas of JB Hi-Fi are retail stores, online stores, a digital platform for videos, music and books subscription services and commercial & education services with a network neighbourhood business.
  • Internal stakeholders of JB Hi-Fi are employees, managers, owners and directors while the external stakeholders of the company are customers, partners, suppliers, investors, government, communities and shareholders. Each stakeholder plays a definite role in the business environment that impacts organizational operations.
  • The nature and degree of stakeholder vary with their interest and power in the organization. Power-interest matrix concentrated on the power and interest of stakeholders in the organization that represents the level of influence of stakeholders.
  • Distinguished roles and influence ofstakeholders are identified in the organizations as compared through the peer organization. Amazon Company is selected by another peer that helps in comparing the stakeholders from the e-commerce industry to the retail industry.
  • Stakeholder theory provides a relevant understanding of the internal and external stakeholders. The influence of stakeholders slightly varies from one industry to another.

Table of Contents

Executive Summary 2

Introduction 3

Functional areas 3

Stores 4

Online 4

Digital 4

Commercial & Education 4

Internal and external stakeholders 5

Employees 5

Managers 5

Owners 5

Board of Directors 5

Customers 6

Suppliers and Partners 7

Communities and Governments 7

Investors 7

Shareholders 7

Nature and degree of main stakeholder’s interests 8

Level of main stakeholder’s influence 9

High Power, Low Interest 10

High Power, High Interest 10

Low Power, Low Interest 10

Low Power, High Interest 10

Stakeholder matrix 11

Differences in stakeholders 12


Stakeholder analysis is considered as a process to recognize the individuals and group them based on their influence, interest and participation in the organization. It helps in identifying the internal and external stakeholders in the organization that can influence the performance of the organization (Liu, Zhou, Zhou&Xue, 2017). Identification of stakeholders can help in maintaining suitable communication strategies that can enhance organizational production and improve its relationship with the stakeholders. Internal stakeholders are known as the entities that are identifiable in the firm such as investors, employees, the board of directors and managers while external stakeholders are not the internal part of the organization but they get affected through the organizational performance such as suppliers, investors, regulators and consumers. Internal and external both stakeholders are necessary for an organization to maintain effective opportunities and achieve success in the business (Schmidt,Drews&Schirmer, 2017). Stakeholder analysis can promote the recognition of the major stakeholders that can influence the growth of the organization and requires specific strategies to manage their impact. This paper aims at the identification of internal and external stakeholders of a specific organization that are available in the business environment of the firm. A value proposition can be established by the organization through the identification of major stakeholders. Influence of the stakeholders on the business can be seen through a change in the organizational performance and its strategies(Liu, Zhou, Zhou &Xue, 2017). This report is based on the stakeholder analysis of JB Hi-Fi company to investigate the influence of the stakeholders over the organization.

Functional areas

JB Hi-Fi is originated in Australia with its headquarter in Melbourne, Australia. It is considered among most successful companies in the Australian market with its specialization in home appliances, electronics and hardware-based consumer goods. It works with 311 stores in Australia and New Zealand (JB Hi-Fi, 2018). Retail store of JB Hi-Fi mainly works in sales and consulting services with several product categories. JB Hi-Fi is currently operating in retail stores and online stores to meet the needs of technology and managing the financial performance of the organization. Key functional areas of the company are retail stores, online sales, a digital platform for selling music, videos and books (JB Hi-Fi, 2020).


The major functional area of the organization is sales through its retail stores in the shopping centre locations and destination sites. It operates in more than 311 physical stores to deliver distinguished consumer products(JB Hi-Fi, 2018JB Hi-Fi, 2020).


To enhance the customer experience, the company is focusing on online sites to combine with the physical locations and manage the shopping experience of customers to grow the sales. Better operations through online sales help in functional improvement that can enhance individual experiences. The online sales of the organization increased by 29.8% in FY2013 and continue to grow with unique visitors and more customers(JB Hi-Fi, 2018JB Hi-Fi, 2020).


For managing the sales in retail and online stores, the digital platform is used to maintain physical purchase and engaging the customers with different offers. JB Hi-Fi NOW promotes digital content for the customers with specific details regarding music, videos and books. NOW Video, NOW Books and NOW Music allows customers to engage with the organizations effectively and take benefits of the digital services through subscribing the services(JB Hi-Fi, 2020).

Commercial & Education

JB Hi-Fi is based on network neighbourhood business to manage a strong service in the education sector. Integration of the IT support services with 160 technicians help in managing the sales and proceeding towards better services(JB Hi-Fi, 2018; JB Hi-Fi, 2020).

Internal and external stakeholders

Internal stakeholders are considered in the internal operations of the organization that helps in shaping the organizational strategies (Brunton, Eweje&Taskin, 2017). Employees, manager, owners and board of directors of JB Hi-Fi are internal stakeholders of the company that can influence the operations of the organization(JB Hi-Fi, 2020). Internal stakeholders affect the finances and business operations of the organization. Stakeholder theory represents the internal and external stakeholders that impact the operations of the organization directly or indirectly(Brunton, Eweje&Taskin, 2017). The roles of the internal stakeholders can be identified as:


Employees are the major internal stakeholder that influences the performance of the organization.These are essential for the time and financial investments in the business to define the operations, tactics and strategies in the organization(Brunton, Eweje&Taskin, 2017; Damanpour, Sanchez‐Henriquez& Chiu, 2018).


Managers promote the determination and establishment of strategies for the organization and direct the employees to meet significant business performance through operations decisions. They play an essential role in communicating with the board of directors, shareholders and employees in the organization(Brunton, Eweje&Taskin, 2017; Damanpour, Sanchez‐Henriquez & Chiu, 2018).


Owners in the organizations hold a major number of shares in the company and impact the vision of the organization through substantial decisions and strategies (Damanpour, Sanchez‐Henriquez & Chiu, 2018).

Board of Directors

The board of directors are considered under top-level management and play a major role in defining the strategies, vision, mission and values of the company that can be easily followed by the employees in the organization(Brunton, Eweje&Taskin, 2017; Damanpour, Sanchez‐Henriquez & Chiu, 2018).

Figure 1: Internal and external stakeholders


External stakeholders are considered as outside the organization but leave a significant impact on the operations (Hueske& Guenther, 2015). PESTLE analysis can be used to identify the external stakeholders of the organization that can impact the organization’s performance. PESTLE is a framework that defines the macro environment of the organization and represents political, economic, social, technological, legal and environmental factors of the business (Frandsen& Johansen, 2015). Based on the PESTLE analysis of JB Hi-Fi, external stakeholders are the organization are:


Customers are considered as the most important stakeholders of the organization that are necessary for the growth. For the retail and online business, organizations target different segments of customers through significant communication channels. Expansion in customer-based allows the retention of customers to maximize the sales in retail and online store(Frandsen& Johansen, 2015).

Suppliers and Partners

Suppliers are essential for providing relevant materials for manufacturing and delivering the best value to the customers. To manage the business ethically and meeting the expectations of the customers, suppliers and partners are effective to maintain specific vision, strategies and goals that can enhance safeguarding for the customers and employees(Frandsen& Johansen, 2015).

Communities and Governments

Governments and communities play an essential role in the community to promote a positive image among consumers. The actions of the governments and communities impact the operations of the company through policies, tax rates and other legislations. JB Hi-Fi fulfils the responsibility towards society and environment including paying taxes to maintain an effective relationship in the external environment (Henisz, 2017; JB Hi-Fi, 2018).


The investors provide finances to the organization and help in maintaining continuity in the venture through assistance in the purchase of properties and assets. High-quality financial assistance is possible through the understanding of investors and their investments made in the business. To promote good relations in business and effectively managing the finances, the investors help in meeting the business needs(Henisz, 2017; JB Hi-Fi, 2018).


Shareholders are necessary to maintain share capital and enhancing finances through financial investments. They also play an important role in corporate governance to manage business indirectly (Henisz, 2017).

Nature and degree of main stakeholder’s interests

The nature and degree of stakeholders vary in the organizations. Based on the interests and impact of stakeholders, the priority in the business can be derived that can help in meeting the company needs. Stakeholders are considered as powerful based on their degree of interest and power to influence the business (Mok, Shen & Yang, 2015). The nature and interest of the stakeholders’ can be seen as follows:

Table 1: Interest of stakeholders

StakeholderInternal/ExternalInterestPowerInterest of stakeholders
CustomersExternalHighHighQuality of the products and services Price of the products and services Opening hours Range of supplies Facilities availability
OwnersInternalHighHighProfit Strategies
EmployeesInternalHighHighSalary Job security Working conditions
ManagersInternalHighLowIndividual growth Salary Job security
Local communityExternalLowHighEmployment opportunity Pollution Safety
ShareholdersExternalHighLowShare price Profit margin Dividends
GovernmentExternalLowHighCompetition Environmental issues Legal issues
SuppliersExternalLowLowPrice Raw materials Future orders
InvestorsExternalHighHighProfits Risk in return Repayment of loans

Level of main stakeholder’s influence

To analyze the level of influence of stakeholders, stakeholder matrix is identified as effective that can represent the power and interest of stakeholders. The importance or influence of each stakeholder can be identified through the given matrix that represents the level of influence of stakeholders based on their interest. Below figure represents the level of influence/ power od stakeholders and the level of interest of stakeholders in JB Hi-Fi company to identify the main stakeholders of the organization(Mok, Shen & Yang, 2015; JB Hi-Fi, 2020).

Figure 2: Power-interest matrix


High Power, Low Interest

Local community and government show a low interest in the operations and strategies of the JB Hi-Fi company while they have a high power to influence the organization through their decisions and policies. The organization must keep the community and government satisfied through fulfilling appropriate laws and legislations that are essential for the business operations and meet the safety requirements of individuals. JB Hi-Fi needs to keep them satisfied for the effective growth of the organization(Bourne, 2016; Mok, Shen & Yang, 2015; JB Hi-Fi, 2020).

High Power, High Interest

Customers, employees, owners and investors show a high interest in the company to seek for their benefits. Through their high interest and high power, maximum influence can be seen in the organization that can impact the business operations and sales in a specific period. These are identified as the key players for the company thus it is necessary to engage them closely for the benefit of the firm(Bourne, 2016; Mok, Shen & Yang, 2015; JB Hi-Fi, 2020).

Low Power, Low Interest

Suppliers show a low interest in the organization with internal business operations. They are considered as an external stakeholder with low power to influence the business decisions. It is identified that the organization requires a minimal effort for the suppliers as they have a low influence over the business(Bourne, 2016; Mok, Shen & Yang, 2015; JB Hi-Fi, 2020).

Low Power, High Interest

Managers and shareholders seek high interest in the business while they consist of low power to influence the business operations. It is necessary to consider these stakeholders and informing them continuously for the changes and strategies(Bourne, 2016; Mok, Shen & Yang, 2015; JB Hi-Fi, 2020).

Stakeholder matrix

Stakeholder matrix is known as a specific tool that helps to recognize the actions of the stakeholders that are necessary to meet the desired business goals. Following stakeholder, the matrix provides relevant information regarding the stakeholders, their power, interest and engagement strategy to ensure effective communication in the business environment(Bourne, 2016).

Table 3: Stakeholder matrix

Stakeholder NamePowerInterestEngagement Strategy
CustomersHighHighSocial media marketing and communication techniques to manage consistent feedbacks
OwnersHighHighInvolvement in board meetings
EmployeesHighHighContinuous feedback and meetings to communicate effectively regarding the business operations and focus on employee satisfaction
ManagersHighLowFeedback involvement from managers and involved in policymaking
Local communityLowHighFocus on corporate social responsibility through several strategies and effective procedures to fulfil the needs of society and enhance better opportunities for individuals in society.
ShareholdersHighLowEmphasize on dividends and profits to promote the benefits of shareholders and engage a communication plan to communicate with shareholders.
GovernmentLowHighRegular annual reports publications and audits to ensure effective operations and safety of employees in the organization
SuppliersLowLowClear communication with suppliers to ensure the needs of the manufacturing of products and order them in advance.
InvestorsHighHighEngage the investors in decision making and managing the internal operations of the organization.

Differences in stakeholders

To assess the differences in stakeholders, Amazon Company is chosen. There are several differences in the views of several individuals based on their organizations. Each industry brings different stakeholders in the environment and their influence varies. Amazon is an e-commerce company that focuses on different products selling online. Based on the industry of the business, the stakeholder analysis differentiates. The identified stakeholder of Amazon concentrated on stakeholder theory. Internal and external stakeholders are most common in the business while the influence of some of the stakeholder changed(Bourne, 2016; Mok, Shen & Yang, 2015; JB Hi-Fi, 2020).

The role of competitors and consumers in Amazon is effective to bring innovation and quality in the service and products while JB Hi-Fi focuses on the maximum engagement of consumers to promote sales. The owner of Amazon shows a high interest in the business with a high influence over business operations although the owner of JB Hi-Fi has limited influence over the business as compared to the board of directors(JB Hi-Fi, 2018). The suppliers of the Amazon show a high influence over the business with a high interest although this report emphasizes the low influence of suppliers in the business (Yang & Shen, 2015).

Amazon works in the global environment that focuses on the local and international community to bring changes in society. Effective engagement in the society helps the organization to manage brand awareness while JB Hi-Fi focuses on the local environment of Australia and New Zealand based on their work locations. These differences in the industries and reach of organizations, impact the stakeholder’s interest and influence in the organizations. However, it can be identified that stakeholder theory is applicable for all the industries and help to manage internal and external stakeholders in the business environment (Pandi-Perumal, et al., 2015).


It can be concluded that the stakeholder’s theory helps in identifying and analyzing the stakeholders based on their roles, power, interest and influence in the organization. The key functional areas of JB Hi-Fi are based on physical stores, online stores and digital sales. Internal stakeholders of JB Hi-Fi are employees, manager, owners and board of directors while the external stakeholders of the organization are customers, suppliers, partners, government, community, shareholders and investors. Each stakeholder plays a specific role in the business environment that impacts the functions of the organization based on their level of power. Customers and employees play a major role in organizations that helps in achieving the desired organizational performance. The role of each stakeholder provides a better understanding of the interest of the stakeholders in the company that defines the future of the organization. Customers show a high interest in the organization with a high power that promotes a high influence in the organization. To analyze the stakeholder’s influence, the power-interest matrix is used in the report that helps in analyzing the key players of the organization that show a high influence over the operations. Investors, customers, owners and employees are identified as highly influential stakeholders that show a high interest in the organization with high power. Stakeholder matrix provides an understanding of the engagement strategy based on the interest and power of the stakeholders. The discussion forum helped to compare the stakeholders of different companies based on their industries although it provides several similarities in the stakeholders.


Brunton, M.,Eweje, G., &Taskin, N. (2017). Communicating corporate social responsibility to internal stakeholders: Walking the walk or just talking the talk?. Business Strategy and the Environment26(1), 31-48.

Bourne, L. (2016). Stakeholder relationship management: a maturity model for organisational implementation. London: CRC Press.

Damanpour, F., Sanchez‐Henriquez, F., & Chiu, H. H. (2018). Internal and external sources and the adoption of innovations in organizations. British Journal of Management29(4), 712-730.

Frandsen, F., & Johansen, W. (2015). Organizations, stakeholders, and intermediaries: Towards a general theory. International Journal of Strategic Communication9(4), 253-271.

Henisz, W. J. (2017). Corporate diplomacy: Building reputations and relationships with external stakeholders. New York: Routledge.

Hueske, A. K., & Guenther, E. (2015). What hampers innovation? External stakeholders, the organization, groups and individuals: a systematic review of empirical barrier research. Management Review Quarterly65(2), 113-148.

JB Hi-Fi (2018). Annual Report 2018. Retrieved from:

JB Hi-Fi (2020). About us. Retrieved from:,another%20nine%20stores%20were%20opened.

Liu, P., Zhou, Y., Zhou, D. K., &Xue, L. (2017). Energy Performance Contract models for the diffusion of green-manufacturing technologies in China: A stakeholder analysis from SMEs’ perspective. Energy Policy106, 59-67.

Mok, K. Y., Shen, G. Q., & Yang, J. (2015). Stakeholder management studies in mega construction projects: A review and future directions. International Journal of Project Management33(2), 446-457.

Pandi-Perumal, S. R., Akhter, S., Zizi, F., Jean-Louis, G., Ramasubramanian, C., Edward Freeman, R., &Narasimhan, M. (2015). Project stakeholder management in the clinical research environment: how to do it right. Frontiers in psychiatry6, 71.

Schmidt, J., Drews, P., &Schirmer, I. (2017). Digitalization of the banking industry: A multiple stakeholder analysis on strategic alignment. Retrieved from:

Yang, R. J., & Shen, G. Q. (2015). Framework for stakeholder management in construction projects. Journal of Management in Engineering31(4), 04014064.

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