BTEC Business Level 3 Unit 1: Exploring Business
Narges
Learning Aim A To explore the features of different businesses and what makes them successful.
P2 Task: Explain how two contrasting businesses are influenced by stakeholders
The influence of stakeholders on business success In this section I will be explaining how stakeholders influence Marks and spencer’s (M&S) National Society for the Prevention of Cruelty to Children (NSPCC). Stakeholders A Stakeholder is any individual who has an interest in a business. It can be people, organisations or groups. Internal stakeholders are individuals or groups who are directly and possible financially involved in the operative process in the business. This includes: o Owners -
individuals who hold substantial shares in the business. the owner is responsible for the impacts the organisation has, a play a big role in strategy. They are interested in how much profit the business is making and how successfully it is being run.
o Employees -
Employees are another example internal stakeholders, they have a major financial and time investment in the business. They play a big role in the method, strategy and overall operations that the business carries out. Business that are thriving will take into consideration employee’ concerns, opinions and values when determining the vision and mission of their business.
o Managers
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Managers play an extensive role in influencing the strategy of the business and in the operational decisions. Managers are responsible for the decision making and the shareholders, board of directors and the organisation itself contact each other through the manager.
This graph demonstrates the stakeholders that are involved in search engine organisation. Several groups impacted by the operation such an owner, consumers, financiers, government and advertisers.
External Stakeholder do not directly work with the business but are affected by the actions and outcomes of the business. Some of These include o Suppliers -
suppliers are co-dependent as one’s success will influence the success of the other. As a result, suppliers are a key external stakeholders as they are closely related the business as they provide the business with supplies to run.
o Customer -
the business needs to understand itself central customer base, and adjust their products and services to their wants and needs. The change all the time the business can achieve this by understand trends and habits of consumers or they may simply go elsewhere additionally, business needs to interact with their customers through social media and emails.
o Local community -
A business can be a great advantage to a community as they offer tax money, local access to goods and services, and jobs. Conversely, a business can likewise be a
drawback to the community as it increases traffic when having deliveries, pollution and also may take away customers from smaller business. Consequently, businesses must look at the necessities of the community, and balance the advantages and drawbacks when choosing a community to set up in and also engaging the community.
o Government -
Business have to give a part of their revenue to government as tax and thus an interest in the success of the business. Governments are seen as primary stakeholders as there is a motive for profit. In addition, governments regulate oversight to verify the accounting procedures, ethical practices, legal concerns are being controlled accurately by the business representative.
Stakeholder at Marks and Spencer Internal Stakeholders o Owners -
The founders of Marks and Spencer are Michael and Thomas Spencer although they created the business they are not the sole owners; M&S are a public limited company meaning the public can buy a share of the business meaning they have a saying in the decision making within the business they are known as the shareholders. As of 2016 Steve Rowe is the CEO. Every year the shareholders are invited to the annual meeting conference where they are updated with all the that has happened in the business, as well as plans they have for improvements for the coming year; and how much revenue they are making as it is the main concern for shareholders. At these annual meetings M&S discuss the new plans for the upcoming years for they business to improve and grow which would be on an annual report. M&S must ensure their plans are realistic and that it will work so that investors continue to invest as they would be left feeling assured and confident. On how the business will be moving forward in the future.The
shareholders get a proportion of the business’ annual revenue depending on their percentage of share, this is called dividends. In Marks and Spencer all shareholders are categorised as owners. Owners have the most influence, as they make decisions about the business’ operation and provide capital to allow it to expand.
This is how dividends are worked out
o Employees
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Marks and Spencer have over 85,000 staff worldwide and more than 90% of them are located in the UK. However, due to the global pandemic they had to let go of over 7,000 employees. As a result, they now have 78,000 employees.
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There is a wide variety of positions in-store, support office, distribution and international. In-store they offer positions including Cashiers, Customer Assistants and Team support, Retail Management, Visual merchandising, Seasonal & Christmas workers, supervisors, and Cleansers. Jobs in the Support Office include Food, Fashion, Communication, customer service, corporate Governance, Digital Data, Ecommerce, Finance, Group strategy, HR, Marketing, Property, Supply Chain & Logistics and Technology. In Distribution M&S offer Warehouse Managers, Warehouse Operatives, Engineers, and Distribution Supporters. Internationally M&s have specialist teams are given the challenge of psychically and visually expanding not only their international stores but also their international online platforms. The special team are given the permission to test out new creative ideas marketing ideas and to develop strong relationships globally.
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Employees play a key role within the business as promote the business’ public image through their customer service and their role to keep customers satisfied and assist them to generate sales. Businesses need to ensure their employees are being; treated right, supported and included as part of the business. As employees are internal stakeholder they impact the business directly, for instance if the employees are not working to their standard to keep customers satisfied it may reduce sales to an extent.
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Employees may wish to have; job security to guarantee they would not lose their job if for instance the business is not doing so well. High wages, and opportunity to get promoted.
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M&S must respond to their employee’s need so ensure they are kept satisfied so they work harder and are motivated. When employees are motivated they work harder, arrive of time and their productivity will rise and a business’ total performance would be higher.
o Managers