P2: Explain how two contrasting businesses are influenced by stakeholders
Stakeholder- A person or group that have an interest or concern in an organisation. They can affect
or be affected by the organisations actions, objectives and policies.
External Stakeholders
Customers
Marks and Spencer’s customers influence the business by making repeated purchases of products
such as food, clothing and homeware goods which are of ‘good quality’ at ‘great value for money.’
Their regular customers provide the revenue and cash flow into the business so it can operate and
ultimately earn a profit. Therefore, M&S understands their customers wants and needs and meet
them on an ongoing basis because if they don’t, they will result in losing customers leading to
decreased figures of revenue going inside the business.
Macmillan Cancer Support have an online shop where customers can purchase their merchandised
products such as clothing, accessories, stationary and homeware/kitchen goods. They have an
extensive range of products that appeal to customers who buy them under the intention of
supporting the charity and helping them to raise money for the organisation. In addition, Macmillan
Cancer Support’s patients and the patient’s families influence the business as they promote the
company to the public. For example, if they are not satisfied or happy with the service they can put a
bad reputation to the business by posting a negative review of them on social media; a platform
where many people can easily come across the scrutiny and also give them a bad image. Therefore,
the charity needs to make sure they satisfy their patients in terms of the service and give them a
relaxed state of mind when it comes to treatments and operations.
Government
The government is interested in Marks and Spencer because they get paid tax on everything the
firm sells, so the more M&S make sales, the more money the government will earn. Because of this,
they will have to keep a close eye on M&S’ income and financial activity to see if they are making a
profit or a loss. Marks and Spencer’s are influenced by the government because they have to obey
and accept the rules and regulations in policies to stay on the safe side; if they don’t, M&S might
have to pay penalty charges such as large sums of fees or the government could potentially sue the
business.
The government is also interested in the charity, Macmillan Cancer Support because they are fond
of businesses that put a positive effect on the society by benefitting many people who need support.
Therefore, the government gives money in the form of funds to the organisation to help them grow
and prosper; the money helps them to buy new facilities and equipment for their cancer patients.
Also, it’s used to be kept aside for big future plans such as construction of new buildings such as
hospitals and offices for the business. Macmillan Cancer Support are positively influenced by the
government because the money they receive enables them to invest in new and the latest
technology and equipment to allow the patients to go through a satisfied service.
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