Miss

D1 – Evaluate the influence different stakeholders exert in one organisation.

Marks & Spenser's
Customers have a big influence on how the company runs. This is because if they lose customers they will have to shut down as a company as they would not be getting enough sales. M&S is known as a more ethical high quality supermarket, although companies like Tesco's and Asda try to be more ethical, M&S know that it is very important to them that they make this a high priority. Although many people are concerned with the ethics from where the products they buy come from, and how they are sourced, many people within the higher income bracket are generally more concerned about these issues. As many people within the higher income bracket are regular customers of M&S it is important that M&S meet the demands of their customers and make a big effort to change how they run their business. For example M&S no longer sell any eggs from caged hens and do not work with any companies that may be involved with child labour, for example for manufacturing clothes. M&S also understand that many of their customers are willing to spend extra on free range eggs and organic meat, whereas Tesco have many customers who would not be able to spend more for these items and therefore they need to offer a range of these products to meet the demands of customers.
Shareholders are concerned by profits; they encourage the company to make decisions based on what will create the most amount of profit. This may mean that they wish to make the customers happy by meeting their demands to encourage them to spend more, but sometimes the choices they want the company to make, may not make all the customers happy. Shareholders exert a lot of influence into how the company runs because companies want those buying shares in the company, and do not want share prices to fall. If M&S was not making profits and acting against the wishes of shareholders many may wish to sell...