Expansion of a Paper Factory: Stakeholder Analysis and Strategic Management

Name: Qasem Abu Dawas

Dr. Samineni Sridevi

Course Name: Strategic Decision Making and Management

Course ID BUS 5117

Written Assignment 1

Academic Year 2025

Term 5

Date: 20 June 2025

Introduction

The proposed expansion of a paper factory offers significant economic opportunities,

including the creation of high-paying jobs in the local community. However, this
development also raises concerns regarding increased traffic, pollution, and environmental
impact. To navigate these complexities, it is crucial to identify the relevant stakeholders,
establish strategic committees for effective management, and implement a comprehensive
communication strategy. This analysis will outline the internal and external stakeholders
impacted by the project, propose two strategic management committees, and articulate how to
integrate stakeholders into the process while maintaining transparent communication.

1. Stakeholder Identification

Internal Stakeholders

1. Company Owners/Shareholders

o Interests: Focused on profitability, return on investment (ROI), and long-term

sustainability of the company (Ksapa, 2020).

o Concerns: May be wary of potential backlash from the community or

regulatory challenges that could impact profitability (American Planning
Association, 2010).

2. Management Team

o Interests: Responsible for project execution, operational efficiency, and

compliance with regulations (Project Delivery, 2025).

o Concerns: Must balance production goals with community relations and

environmental impacts.

3. Employees

o Interests: Seek job security, competitive wages, and safe working conditions
(APA Group, n.d.).

o Concerns: May fear health risks from increased production and pollution.

4. Union Representatives

o Interests: Advocate for workers’ rights, safety standards, and fair labor
practices.

o Concerns: Focused on ensuring that employee welfare is prioritized during

the expansion.
External Stakeholders

1. Local Community Residents

o Interests: Desire job opportunities and economic benefits from the expansion.

o Concerns: Worry about increased traffic, noise, and pollution affecting their
quality of life (Food and Agriculture Organization of the United Nations, n.d.).

2. Local Government

o Interests: Promoting economic development while ensuring community well-

being and regulatory compliance.

o Concerns: Must address community concerns while facilitating business

growth (Savannah Resources Plc, n.d.).

3. Environmental Regulatory Agencies

o Interests: Ensure compliance with environmental laws and regulations.

o Concerns: Monitor potential environmental degradation and enforce

regulations (Ferrara & De Feo, 2021).

4. Environmental Advocacy Groups

o Interests: Advocate for sustainable practices and environmental protection.

o Concerns: May oppose the expansion if adequate environmental safeguards

are not in place (American Planning Association, n.d.).

5. Local Businesses

o Interests: Benefit from increased economic activity and customer traffic.

o Concerns: Potential negative impacts from increased congestion and

pollution.

6. Suppliers

o Interests: Anticipate increased demand for raw materials from the factory.

o Concerns: May face pressure to meet higher production needs sustainably.

7. Customers

o Interests: Concerned about product availability and pricing.

 o Concerns: May prefer products from companies with sustainable practices.

8. Creditors/Lenders

o Interests: Evaluate the financial viability of the expansion and the company’s
ability to repay debts.

o Concerns: Risk assessment related to potential environmental litigation or

regulatory fines.

9. Media

o Interests: Cover the expansion’s impact on the community and environment.

o Concerns: Can shape public perception and influence stakeholder sentiment.

10. Indigenous Populations (if applicable)

o Interests: Protect traditional lands and resources.

o Concerns: May face impacts from changes to land use and environmental
degradation.

2. Proposed Committees for Strategic Management

A. Project Steering Committee (PSC)

Focus: Overall project strategy, financial oversight, and alignment with company goals.

Members:

 Senior Management (CEO, CFO, COO)

 Plant Manager

 Project Manager

 Environmental Compliance Representative

 Employee Union Representative

Responsibilities:

 Approve project plans and budgets.

 Monitor project progress and address major roadblocks.

 Ensure regulatory compliance and risk management (Project Delivery, 2025).

  Make strategic decisions regarding project scope and direction.

B. Community and Environmental Impact Committee (CEIC)

Focus: Addressing community concerns and environmental impacts.

Members:

 Plant Manager or designated representative

 Environmental Compliance Manager

 Public Relations/Community Liaison Officer

 Local Community Representative (e.g., resident or community leader)

 Environmental Group Representative

 Local Government Official (e.g., city council member)

Responsibilities:

 Conduct community outreach and engagement activities (Ksapa, 2020).

 Oversee environmental impact assessments and compliance monitoring (Food and

Agriculture Organization of the United Nations, n.d.).

 Develop and implement mitigation plans for environmental and social impacts.

 Address community concerns and grievances.

 Recommend community investment projects and initiatives (APA Group, n.d.).

3. Integrating External Stakeholders into the Strategic Management Process

To effectively integrate external stakeholders, the CEIC will ensure their voices are heard
throughout the project. Key strategies include:

 Regular Public Forums: Organize town hall meetings to provide updates, gather
feedback, and address community concerns (Savannah Resources Plc, n.d.).

 Stakeholder Surveys: Conduct surveys to gauge community sentiment and identify

key issues.

 Transparent Communication: Establish a dedicated project website and email for

inquiries and updates.
  Partnerships with Local Organizations: Collaborate with local non-profits and
community groups to implement community investment projects (American Planning
Association, 2010).

 Continuous Engagement: Foster ongoing dialogue with stakeholders to build trust

and address concerns proactively.

4. Keeping Stakeholders Informed

A comprehensive communication plan will be developed to ensure stakeholders remain

informed throughout the project:

 Project Website: A regularly updated online portal containing information on project

status, community engagement activities, and contact details for inquiries.

 Newsletters: Regularly distributed updates to stakeholders, highlighting project

milestones and community engagement efforts.

 Press Releases: Announcements regarding major project developments, addressing

both opportunities and challenges (Ferrara & De Feo, 2021).

 Social Media Engagement: Utilize social media platforms to share information and
interact with the community.

 Community Events: Participate in local events to foster relationships and provide

updates.

 Reports: Share periodic reports on environmental performance, compliance, and

community engagement outcomes (United Nations Development Programme, 2022).

5. Optimal Solution Proposal

The optimal solution for the factory expansion must balance economic benefits with
environmental and community considerations. Key components include:

1. Adopting Best Available Technology (BAT): Invest in modern technologies that

minimize pollution and resource consumption, such as advanced wastewater treatment
and energy-efficient machinery (Ferrara & De Feo, 2021).

2. Comprehensive Environmental Management System (EMS): Implement an EMS

that includes environmental policies, procedures, and performance monitoring to
ensure compliance and continuous improvement (American Planning Association,
n.d.).

3. Community Investment: Commit to supporting local initiatives that enhance

community quality of life, such as education, health services, and infrastructure
projects (Ksapa, 2020).
 4. Sustainable Sourcing: Prioritize the use of recycled materials and sustainably
sourced wood to minimize environmental impact (Food and Agriculture Organization
of the United Nations, n.d.).

5. Waste Reduction and Recycling: Develop programs to reduce waste generation and
enhance recycling efforts within the facility.

6. Traffic and Noise Mitigation Strategies: Implement traffic management plans to

minimize congestion and adopt noise reduction measures, such as sound barriers
(Project Delivery, 2025).

7. Transparency and Engagement: Maintain open and transparent communication with

stakeholders and actively engage them in project decisions.

8. Offsetting Programs: Invest in carbon offset initiatives, such as tree planting and
habitat restoration, to mitigate greenhouse gas emissions (APA Group, n.d.).

Example Initiatives

 Traffic Management: Optimize truck routes, stagger shift times, and provide shuttle
services for employees to reduce congestion.

 Noise Reduction Measures: Install noise barriers and implement best practices to
minimize sound pollution.

 Air Quality Monitoring: Establish continuous air quality monitoring and share
results with the community.

 Water Conservation Techniques: Implement water-saving technologies and

practices to reduce consumption.

Conclusion

The expansion of the paper factory presents a valuable opportunity for economic growth
while necessitating careful consideration of environmental and community impacts. By
identifying key stakeholders, establishing strategic committees, integrating community
voices, and implementing best practices, the project can achieve a balance that supports both
business objectives and community well-being. This approach will foster sustainable
development and ensure the long-term success of the expansion, ultimately benefiting the
company, its employees, and the surrounding community.
References

 American Planning Association. (2010). Hazard Mitigation: Integrating Best

Practices into Planning (PAS Report No. 560). [https://planning-org-uploaded-
media.s3.amazonaws.com/publication/book_paperback/PAS-Report-560.pdf]

 American Planning Association. (n.d.). Community Inducements to Industry (Planning

Advisory Service Report No. 22). Retrieved from
[https://www.planning.org/pas/reports/report22.htm]

 APA Group. (n.d.). Community and social performance. Retrieved from

[https://www.apa.com.au/sustainability/community-and-social-performance]

 Ferrara, C., & De Feo, G. (2021). Environmental Assessment of the Recycled Paper
Production: The Effects of Energy Supply Source. Sustainability, 13(9), 4841.
[https://doi.org/10.3390/su13094841]

 Food and Agriculture Organization of the United Nations. (n.d.). 3. - The EIA in the
Pulp and Paper Industry. Retrieved from
[https://www.fao.org/4/v9933e/v9933E03.htm]

 Ksapa. (2020, February 18). 5 Keys to Local Human Rights Stakeholder Engagement.
Retrieved from [https://ksapa.org/5-keys-to-local-human-rights-stakeholder-
engagement/]

 Project Delivery. (2025, April 2). Chapter 26. Stakeholder engagement. Retrieved
from [https://projectdelivery.gov.uk/teal-book/home/part-e-planning-and-control/
chapter-26-stakeholder-engagement/]

 Savannah Resources Plc. (n.d.). Environmental Impact Assessment. Retrieved from

[https://savannahresources-wwwsavannahresourcescom.azurewebsites.net/project/
environmental-impact-assessment/]

 United Nations Development Programme. (2022, September 22). Annex 7.

Stakeholder engagement plan. Retrieved from
[https://www.undp.org/sites/g/files/zskgke326/files/2022-09/PIMS_6565_Annex_07_
SEP%20FOR%20PUBLIC%20DISCLOSURE.pdf]