A firms relationship with its business environment - Marks and Spencer
DESCRIBING A FIRMS RELATIONSHIP WITH ITS ENVIRONMENT
INTRODUCTION AND BACKGROUND
By choosing a firm or organisation it is possible to assess the relationship with its business environment.
The firm that is going to be the focus in this study is the well-known organisation Marks and Spencer.
Marks and Spencer is known for being one of the UKís leading retailers in clothing, foods, home ware, and financial services. They have over 300 stores in the UK and have 38 other stores in countries worldwide.
STAKEHOLDERS OF MARKS AND SPENCER
A Stakeholder is any individual or group who have a connection with the company. Stakeholders donít all have equal importance to a firm but they all play a part in the existence of the company. Stakeholders can be split into 2 categories; internal stakeholders or external stakeholders.
Internal Stakeholders of Marks and Spencer
Internal stakeholders are groups within the firm and are important to the welfare of the company. The Internal stakeholders in Marks and Spencer are;
Staff and Management
Owners and Shareholders
Staff and Management at all levels are important stakeholders of Marks and Spencer as they rely on their positions within the firm to earn a wage. Working for the firm is their primary source of income.
Owners are also internal stakeholders as they depend on the profits of the company for their income.
Members of the public and often people who work within the company invest their money by buying shares in Marks and Spencer, with hope that the value of the shares will increase, through the company remaining profitable. The shareholders are internal stakeholders as their money is used to benefit the company by providing the means for further investment and expansion of the company.
External Stakeholders of Marks and Spencer
External stakeholders have a role in the success of the business as they sell to and buy from the firm, but do not work for or belong to the firm. Not only do they contribute to the success of the company but to benefit themselves. The external stakeholders in Marks and Spencer are;
Customers are one of the most obvious stakeholders for a company. The customers of Marks and Spencer buy their products to benefit themselves and in the same instance Marks and Spencer are making a sale.
The suppliers are also external stakeholders as they are firms in the business environment that sell their goods to Marks and Spencer benefiting both parties. Communities and general public can be seen as external stakeholders as the firmís goods or processes of production can have an impact on them. Marks and Spencer have to consider whether or not their products are produced as environmentally friendly, and that their methods of production do not generate high levels of pollution.
WHY CUSTOMERS BUY FROM MARKS AND SPENCER
The reputation of the firm has impacted on customersí buying behaviour.
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