Stake Holder Analysis %28Posco Steel %29

8/12/2019 Stake Holder Analysis %28Posco Steel %29

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Project Report on Stakeholder Analysis of

POSCO Steel Project in Odisha

Submitted By

Lovepreet Singh

Jillam Parida

Suman Sekhar Pradhan


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Introduction

Who are the people who will benefit from any given development activity? And whose interestsmight be harmed by it? Identifying the stakeholders, large and small, individual &organizational, for any given activity is essential if all the people who could have a bearing on itssuccess or failure are to have their voices heard. All stakeholders need to have their opinionstaken into account, even if some are to be set aside at a later date.

Stakeholder Analysis allows managers to identify the interests of different groups and find waysof harnessing the support of those in favor or the activity, while managing the risks posed bystakeholders who are against it. It can also play a central role in identifying real developmentneed and that may mean devising a different programme from the one you thought youwere about to embark upon. Stakeholder Analysis should be an integral part of programme

design, and appraisal. It is also a useful technique to use during reviews, missions andevaluations.

Stakeholder analysis is a term used in conflict resolution, project management, and businessadministration to describe a process where all the individuals or groups that are likely to beaffected by a proposed action are identified and then sorted according to how much they canaffect the action and how much the action can affect them. This information is used to assesshow the interests of those stakeholders should be addressed in a project plan, policy, program,or other action. Stakeholder analysis is a key part of Stakeholder management

Why do Stakeholder Analysis?

Stakeholder Analysis is used in the design and management of development programmes toidentify:

The interests of all stakeholders who may affect or be affected by a programme Potential conflicts and risks that could jeopardize a programme Opportunities and relationships to build upon in implementing a programme to help

make it a success The groups that should be encouraged to participate in different stages of the activity

cycle


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Definition of Project Stakeholders:

Project stakeholders are individuals and organizations who are actively involved in the project,

or whose interests may be affected as a result of project execution or project completion.Stakeholders are all those who need to be considered in achieving project goals and whoseparticipation and support are crucial to its success. So identification of all stakeholders is animportant activity of the project manager to ensure project success.

A stakeholder is any person or organization, who can be positively or negatively impacted by, orcause an impact on the actions of a company, government, or organization.A stakeholder is an individual or group influenced by and with an ability to significantly impact

(positively or negatively) the topical area of int erest - Glicken,

Project: POSCO Orissa Steel Project

Location:

Jagatsinghpur District of Orissa (10 km south of Paradip Port)

Plant Capacity:

The 12 MTPA integrated steelworks will be completed in three phases of 4 MTPA each. In PhaseI, hot rolled coil (2.5MT) and slab (1.5 MT) will be produced. The construction for Phase I isscheduled to be completed by 2017-18.

Project objectives :

The obje ctive of the project is to build one of the worlds most competitive steelworks withadvanced technology and stable iron ore supply from captive mines, together with theeconomic development of Orissa

Target group :

The project target group comprises the population in the catchment areas of project, as thesteel plant will improve the road communication and markets benefit everybody irrespective ofincome and profession. It is expected that small and marginal farmers, small traders and micro-entrepreneurs, landless people and poor women will be particularly benefited due the overalldevelopment of catchment area. It is estimated that the total project beneficiaries over the


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project implementation period will reach about an estimated 48,000 direct and indirect jobs inthe region. In addition, the construction phase will create about 467,000 man years ofemployment for the local population.

Potential Trouble makers:The potential trouble makers in the project would be local communities, NGOs, opposition

parties and some professional associations.For e.g. the local people in the area demanded a higher compensation with regard to land thatwas procured for the project. This particular action of some people influenced the public as awhole and the consequences were detrimental. The Company and the Govt. in particular faceda lot of heat to solve the issue, which in turn affected the planning of the project.

Some NGOs also created a hassle environment for the progression of the project just to seek

public attention with some vested interests. The media also added to the woes just bycontinuously casting a negative image of the project in front of general public.As, we know in Indian Democracy, the opposition are one of the major factors as roadblocks indifferent projects .In this case, the local parties spread a negative word of mouth to the publicin general and influenced them to ask for better compensation and rehabilitation facilities,which were in-fact pretty high according to industry standards.

Project Partners

Several Stake holders can become partners in the project. For e.g Suppliers and Vendors whowere supplying raw material to the company can become one of the partners in the project,along with the existing customer base can be one of the leading partners in the project. In thiscase Govt.of Odisha is one of the partners in implementing the project within the stipulatedtimeframe. Likewise, L&T and Hindustan Construction Company(HCC) can be the partners fordeveloping the industry infrastructure of the project. Investors and the financial institutions canbe the partner in the project.


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Stakeholders:


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Stake Holder Matrix

Employeess

Vendor

Supplier

Alliance & Partner

Government

Board of Directors

Investors

Local Community

Media

Prospect customer

Competitors

Political Party

NGO

ProfessionalAssociations

HighInfluenceLow

Importance

High

Low


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SWOT Analysis

Stakeholders

Group

Strength Weakness Opportunity Threat

Media The ability to widelydistribute projectinformation to widelyvast Audience

Lack of knowledgeregarding technicalspecification whichcan lead tomisinformation

The exposure ofinformation beforeformalannouncementmade

Promotecommunicationandengagement

Inappropriateand misuse ofmedia indifferentcircumstances

Community Knowledge of localsituationCreating a veryfriendly atmosphereto workCan influence local

peopleHelp in implementingCSR initiative

Lack of institutionalPowerLack of TechnicalKnowledge

Enhancement ofStandard ofliving

CommunityDevelopment

Can influencelocal peopleagainstcompanyCan createroadblock in

executing theproject


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Government The ability to provideadministrativesupportThe ability provide

infrastructureThe ability toinfluence peopleThe ability create afriendly policy anddecision

The tendency totake populistdecisionThe tendency to

scramble to thepressure of NGOsand OppositionResettlement andrehabilitationactivities

Enhancing theeconomicalstate of art

Creating anurturingenvironment forindustry

Subsequentchanges inrules andregulations of

governmentpoliciesUnnecessaryroadblock inprovidinglicense andallocatedresources

Suggestions

The project implementation got delayed due to delayed acquisition of the allocated land to theproject; the situation could have been avoided by implementing a community development andawareness drive before going for actual acquisition of land. A more supportive atmospherecould have been created, if the company would have adopted a fair and transparent acquisition

policy of their own rather than that of Government.

Lack in Community trust building efforts as well as educating the stakeholders about thepositive prospects of the project. This initiative could have played a vital role in successfulacquisition of land as well as getting the community support for setting up the project.

They could have taken a holistic approach in partnering with the local NGOs in ensuring theproper allotment of funds meant for development of local community centers, i.e. schools,hospitals and temples etc. They should have emphasized on imparting vocational training and

skills building to the local community to enhance their standard of living and in turn enhancetheir own credibility among the local community.

Stake Holder Analysis %28Posco Steel %29

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