Corporate Governance and Strategies Issues

This research focuses on the impact of stakeholder relationship on the financial performance of business, with a specific study on Marks and Spencer. It explores the role of corporate governance policies and practices in an organization and provides recommendations on how these policies can be implemented within M&S. The research aims to identify the relationship between stakeholders and financial performance and address the issues faced by M&S in retaining stakeholder interest.

CORPORATE STRATEGY AND
GOVERNANCE

TABLE OF CONTENTS
TITLE- Corporate governance and strategies issues.......................................................................3
Chapter 1: INTRODUCTION..........................................................................................................3
1.1 Overview of research ...........................................................................................................3
1.2 Overview of organisation......................................................................................................3
1.3 Problem Statement................................................................................................................4
1.4 Research Aim and Objectives ..............................................................................................4
1.5 Research Question.................................................................................................................5
1.6 Structure of research.............................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Role of corporate governance policies and practices............................................................6
2.2 Relationship between stakeholder and financial performance of business...........................7
2.3 Ways by which Corporate governance policies can be implemented within Marks and
Spencer........................................................................................................................................8
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
CHAPTER 4: CRITICAL DATA ANALYSIS............................................................................14
4.1 Critical review on the basis of secondary research.............................................................14
Ways by which Corporate governance policies can be implemented within Marks and Spencer
...................................................................................................................................................15
4.2 Critical review on the basis of primary research.................................................................16
CHAPTER 5: RECOMMENDATION AND ACTION PLAN.....................................................25
5.1 Recommendation.................................................................................................................25
5.2 Action Plan..........................................................................................................................26
CONCLUSION..............................................................................................................................29
REFERENCES..............................................................................................................................30

TITLE- Corporate governance and strategies issues
Chapter 1: INTRODUCTION
1.1 Overview of research
An issue related to the corporate governance is the mutual balance between the
participants in the organization which is necessary to be maintained. There are different
participants interested towards the business operations and functions known as stakeholders
which includes shareholders, community staff member and executive staff etc. (Werani, 2018).
Corporate governance practices directly impact on the business profit and reputation of the
organization and having the poor policies that can expose the firms to loss of capital investment,
reputation damage etc. This research mainly defined concept of corporate governance and its role
in maintaining relationship among stakeholders.
1.2 Overview of organisation
Marks and Spencer is a famous British multinational retailer that came into existence in
middle of 1884. It was established by Sir Michael Marks and Thomas Spencer. This retailer
company in UK is listed one of the biggest brand and it is running more than 980 stores in near
about 57 countries and is also listed at London Stock Exchange. But from last performances of
their sales, it has analyzed that M&S faces some issues related to retain interest of its
stakeholders within business. It is arisen due to costly restructuring the corporate strategy for
maintaining sustainability at marketplace. This led management of M&S to think twice on
decision-making process which are concerning mainly upon future (M&S still feeling the heat as
winter approaches, 2019). Any such type of decisions and CG policies are majorly depended on
whether this firm is able to create changes in business. This would spread various negative
rumors about Marks and Spencer which adversely disrupted its image as well.
In this regard, it has been evaluated that every step which is taken by respective firm for
restructuring its business went wrong. This would lead to decrease market share of this company
more adversely. Along with this, it has also analyzed that idea of restructuring the infrastructure
has led M&S to face various issues. It includes near about sixty-two percent fall in profitability
of business annually. Due to this issue, respective company also fails to gain interest of
stakeholders and their financial support in implementation of further projects.

1.3 Problem Statement
Corporate Governance reflects relationship among Board of Directors, Management,
Shareholders, Employees and other stakeholders in a company. It deals with the ways by which
suppliers or investors who finance in corporations assure themselves, to get high return on their
investment (Quinlan and et.al., 2019). The issues of corporate governance will impact on the
financial performance of organization and also measure the accountability of different entities in
terms of policies, activities and operations. The researcher will find out the strong relationship
between the corporate governance practices and impact on the financial performance of
organization. In context with Marks and Spencer, as this company faces failure of corporate
governance. Therefore, this research will help in determining factors that is impacting on
following of CG practices of M&S. It will help in taking effective measures to minimize impact
and increase profits through CG practices. It also identifies ways by effective CG practices can
be implemented within business, by taking consideration the overall interest of stakeholders.
“Main issue which Marks and Spencer is facing is that they are not able to retain interest of
stakeholders” due to which their financial performance is impacted.”
1.4 Research Aim and Objectives
In order to conduct a research, the most essential task for researchers is to formulate proper
aims and objectives. The overall result and success of a project depends on both of these aspects.
It provides guidelines to research-team related to identify issues and address the main objectives
of research. In this regard, main aim and objective of present case study which is based on
Corporate Governance of M&S, are described as beneath:
Research Aim
“To investigate the impact of stakeholder relationship on financial performance of
business- A study on Marks and Spencer”
Research Objectives
 To identify role of corporate governance policies and practices in an organization
 To determine relationship between stakeholder and financial performance of business
 To recommend how corporate governance policies can be implemented within Marks and
Spencer

1.5 Research Question
 What is the role of corporate governance, policies and practices in an organization?
 What is the relationship between stakeholder and financial performance of business?
 How corporate governance policies can be implemented within Marks and Spencer?
1.6 Structure of research
This part describes overall structure of an assignment under which a research is going to be
carried out. It provides actions which are needed to be completed by project-makers for
improving and increasing effectiveness of a research (Bainbridge, 2016). Therefore, in this
regard, structure of present research can be described in following manner:-
Chapter 1: Introduction- This is the most important part of research which includes
overview of project and organisation which is undertaken for the same. It entails main purpose
behind conducting an investigation. In addition to this, it also consists specific aims and
objectives, on which entire research is based.
Chapter 2: Literature review- Under this part, secondary sources are taken to analyse the
perception of different authors and experts, who have already conduct research on same topic.
For this purpose, articles, books and journals have been accessed to collect relevant information
on chosen case study.
Chapter 3: Research Methodology- This part of research describes methodologies by
which project-makers can gather adequate amount of data (Clark, Feiner and Viehs, 2015). It
includes primary and secondary sources which helps in collecting specific information in precise
manner.
Chapter 4: Critical Data Analysis- It shows a critical discussion on information which has
been gathered under primary and secondary research. Here, discussion is made through view
point and perception of different authors in critical manner.
Chapter 5: Recommendation and Action Plan- Here, specific suggestions are provided
under recommendation part to a company, for resolving its issues. It provides ways by which a
corporation like M&S can enhance its reputation and improve its corporate governance policies.
Furthermore, it also highlights action plan which is used to conduct entire activities of chosen
research.

CHAPTER 2: LITERATURE REVIEW
2.1 Role of corporate governance policies and practices
According to Bainbridge, (2016) corporate governance is the most significantly visited
themes in the organizations. It has also managed and control the overall accountability of
organization in proper manner. An effective corporate governance has been required by the
directors that could be maintained the procedure and practices of companies in proper manner. It
encompasses that the executive members reporting to the broad members and aware about the
daily operation that performed in the organization. On the other hand, Accountability is an
essential factor for corporate governance and it helps in dividing top level and lower level
executive in the firm. As a result, it helps in maintaining the entire system of checks and
balances in effective manner. As per the view of Bainbridge, (2016) all the members of
executive board will be having ethical duty in way of making decision which will be based on
best interest of stockholders. However, corporation will be having ethical duty in protecting
social welfare of others including all stakeholders and greater community as well. Main policies
and practices developed by Corporate Governance of Marks and Spencer is to maintain a proper
balance between different stakeholders within and outside the company such as various
shareholders, management, customers, suppliers, distributors etc., Other than this, CG of the firm
has maintained Code of Ethics in their policies so that set behaviour while dealing with valuable
or other customers can be maintained. This will further aid in operating business in an effective
manner.
Most of the people believes that companies whether it is large, medium or small establish
their business with the help of many stakeholders so that maximum benefits can be availed.
Apart from this, reality is that for operating business in an effective manner good governance
plays a crucial role because its positive impact can be seen in the performance of an individual
working in an organisation. “Corporate Governance” is single headedly a very wider concept
and it further plays a crucial role in making policies and practices. Such as it helps organisation
in making laws based on corporate legislation, securities regulators, decisions of courts,
securities laws and policies etc., As a result, following laws will help company with numerous
benefits such as high performance of Board of Directors, thus, it is prime role of managers and
people included in Corporate Governance to better managed risks, strong internal controls with
accountable management, well monitored and better performance.

In terms of best practice with the help of Corporate Governance, if it is followed
effectively than board of directors can identify the gaps in context with ideal qualities employees
have with them. Other than this, better training can be provided existing skills and knowledge of
employees can be enhanced (Flammer, 2015). Along with this, through Corporate Governance,
certain roles and responsibilities of an individual are defined such as role of sub-group of
directors’ committee will include functions like compensation, nominating, audit etc., Another
practices which can be undertaken in Corporate Governance is that it helps in evaluating
performance so that effective decisions regarding compensation that is required to be given can
be made. While operating business there can be many risk that can face by companies so,
Corporate Governance helps in making effective risk management plan with the help of
establishing strategic leadership. Thus, managers of Marks and Spencer are accountable for
managing risk and monitoring the same so that effective decision can be made. Along with this,
directors have an overview and show their responsibility of determining short-term as well as
long-term goals and possible risk that can be faced by companies.
2.2 Relationship between stakeholder and financial performance of business
According to de França, Pereira and Vieira, (2018) the organization is also planning a
strategy for acting different role on internally and also select the suitable strategy for growth or
development. It is a process and task that involves facts and figure at their workplace for
executing stratagem or support to the employee related their job. Sometimes, the organization is
planning for strategy related the formulation but its fail for implementing the changes in
operations (Gregory and Whittaker, 2013). Stakeholders are the most important part of any
organisation as they are having power to impact decision making process within company and
ultimately impacting financial performance as well. The relationship of stakeholders is unique in
their ability to help firms to get their performance better.
Stakeholders plays a crucial role in increasing wealth and its capacity of an organisation.
This can further be classified into two categories internal: which includes employees, investors
etc., whereas, external stakeholders include customers. It is important that company maintains
better relations with both stakeholders because they are the ultimate source of generating
revenues and money for an organisation. For example: if Marks and Spencer wants to increase
their profit than it is important that firm provide services and facilities according to needs and
requirements of consumers. For instance: company must see benchmark of rival companies so

that improve products can be delivered. Therefore, this will aid company in attracting large
number of customers in a limited time frame. As a result, maximum profits can be gained by an
organisation. But before, Marks and Spencer has to think about issues which firm is facing like
maintaining better relation with it stakeholders and influencing them with new strategies so as to
pull attention of the same.
Furthermore, in relation with internal stakeholders Marks and Spencer must think of
providing effective training and development programme because it has an inter-relation with
performance of company (Hannington, 2016). If there will be skilled employees than they will be
able to provide excellent services because of which attracting customers will be easier. As a
result, it will aid in increasing sales and revenues as compared with previous years. Therefore,
companies who take much care and show responsibility towards stakeholders always increase
profit level of business. Thus, it is crucial that in order to increase financial performance
company must fulfil all the need and requirements of stakeholders. Henceforth, attaining goals
and objectives will become easier. Along with this, company will be able to establish positive
reputation at market area.
2.3 Ways by which Corporate governance policies can be implemented within Marks and
Spencer
According to Bell, Bryman and Harley, (2018) an organization must be accurately
collecting data in the form of report to identify their profits or losses. It makes sure to figure out
that those who invest money in the organization. Sometimes, the lack of transparency exposes
the fines from the regulatory agencies in the organization. Issues and problem arises when
corporate governance fails to perform it activities in an effective manner. For instance: with
Marks and Spencer, Stakeholders are pulling their hand from the company and this is happening
because of re-structuring of M&S as a result, firm ultimately faced huge loss. Therefore, in
context with Marks and Spencer, there are many ways through which Corporate Governance
policies can be implemented in an effective manner are explained below:
Appointment of Competent Board Members: It takes time in order to identify skilled
and knowledgeable persons who can be appointed as Board members. But company cannot fully
rely on this instead they must maintain a proper balance between people who are qualified
enough and who know organisation along with its activities. For Marks and Spencer, it is crucial
for board of members to understand the requirement of board so that skills that are required can

be identified and work can be done accordingly (Robson and Farquhar, 2014). Thus, whosoever
is being appointed must be aware of interpersonal skills acquired within himself/herself as it will
help in improving overall board performance. They will be the person who can assist Marks and
Spencer in implementing Corporate Governance policies such as Code of Ethics. Because there
is a saying that is rules and regulations are being applied by seniors or Board of directors that it
becomes mandatory for employees to follow the same. Therefore, it is important for Marks and
Spencer to build a strong Board of Directors who are competent enough in implementing and
observing the rules and regulations or Code of Ethics.
Streamlining the process: Marks and Spencer, has established its business with an
agenda of carrying out various activities. Therefore, with the help of this process company can
set down some kinds of objectives which can further be accomplished for achieving future goals.
Streamlining process can be used for implementing policies. As with a single document,
employees can get to know about things which are required to be followed by them so that better
working environment can be maintained.
Prioritise Risk Management: In business there are many risk that can be faced by a
company so it is important that proper strategies and plans are made because risk don't come
overnight. Risk are not only limited to compliance risk because they are of many types. For
example: Marks and Spencer is going through financial problem due to least interest of
stakeholders from the company so, it is important that management of M&S with the help of
effective strategy managers of the firm must try to grab attention of maximum number of
customers. Other than this, to manage risk, Marks and Spencer can maintain a proper balance
between various stakeholders so that working can be conducted on a smooth go.
Therefore, with the help of some above mentioned points Marks and Spencer can think of
implementing different kinds of policies in an effective manner.

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is a concept that is used by researcher for collecting, analysing
and managing the data in appropriate manner. It will be helpful for selecting the suitable
information that applicable in research areas.
Primary data- The researcher will use the primary data collection method to collect the
data through Questionnaire, conducting interviews etc. This will help in gathering fresh data and
information and analysing them through this it will be easy for researcher to attain aims and
objectives. Therefore, it can be said that it is a methodology which further used in order to gather
data and information that have not been used by any other researcher while doing their research.
Thus, it is very applicable in order to have in depth knowledge regarding a specific topic in
which investigator wants to master. Henceforth, main advantage of primary research is to come
up to a valid conclusion by searching for an effective solution. In relation with the present
research, company will get to know about the issues that firm is facing while operating their
business and gaining competitive advancement as well. Furthermore, different kinds of tools and
technologies is going to be used such as questionnaire, online and offline surveys, interviews and
many more. Thus, some of them are explained below for better understanding:
Interviews (telephonic or face-to-face): This is one of the qualitative method of data
collection. Therefore, it is used in order to gather information from large number of population
either by telephonic conversation or face-to-face interviews. Furthermore, so as to do the same
researcher can used. This kind of research methodology generally depends upon the capability
of researcher and the way he/she influence respondents for extracting data and information.
Therefore, in order to conduct this interview conversation, it is important that open end questions
are being developed which can only last for around 30 minutes. Thus, it can be said that
interview method if very effective when researcher wants to gather information in shorter period
of time. In relation with interview it is required that effective communication method is being
used because it will enable researcher in gathering appropriated information or responses from
respondents.
Online Surveys: With the change in course of time, many new methods had evolved and
online survey is one of them. In this, basically information are collected through mail, internet,
social media sites etc., so, generally researcher develops open end questions provided with few
options so that respondent can choose according to their choices and preferences. Therefore, in

this process once respondents gets the questions, answer them and sent it back to researcher. This
helps investigator in gathering information without going to respondent personally. But it has
some disadvantage as well because there might be a possibility that people may reject to give
answers of questionnaires.
Questionnaire: Among all, this is considered as the best method of collecting data and
information from respondents by formulating a questionnaire. Thus, questions need to be in a
structured manner starting with the understanding and ending with if any recommendation
researcher wants to provide on a given topic. In this all data and information are gathered in a
speculated time frame.
In relation with this research, project managers of Marks and Spencer will make use of
questionnaire by providing well structured questionnaire related to research topics. Along with
this, sample size which will be taken for gathering data is around 10 through random sampling.
Secondary data- This is an another method through which data and information are
collected from secondary sources such as books, journals, articles etc., This will give insight to
researcher about the topic moreover, by interpreting case studies relevant information will be
collected. For present study, researcher will use both methods to gather data.
Sampling- Sampling will be explained as specific principle that used for selecting the
particular members in the population. Researcher will use the 20 employees of M&S to target
population and researcher will have no choice of particular study within the population that reach
to their conclusion. The researcher will use simple random technique that gives chance of
members participating in the research study.
Analyses method- Data analysis method will help for transforming, cleansing and
modelling the data with discovering the specific goals and achievements. The researcher will use
the thematic data analysis of qualitative method for identifying the multiple approaches, facts
and figures etc.
Design- Research design will general plan about the answer in the research questions. It
included research method and strategies for analysing and collecting the data in proper manner.
It will be divided into two ways such as Exploratory and conclusive.
For further research, Exploratory research will use for determine the nature and problem
of research. It will explore the research topic with different level of depths. It will help for

researcher determining the design, methodology and data collections. Exploratory method will
generally study about the qualitative information and interpretation related to the subject.
Access and Ethics- Ethical consideration will be specified about the important part of
research.
 The researcher participants will not be subjected to harm the ethical in any ways.
 It will respect to the dignity of participants in the research subject or topic.
 The researcher should always maintain the privacy and protection of participants and
members.
 It ensures that the level of confidentiality maintain in the research data and information.
Questionnaire
Name:
Age:
Gender:
Q1) Do you think relationship of a company with its stakeholders’ impact on its financial
performance?
a) Yes
b) No
Q2) What is the main role of corporate governance within an organization?
a) Run business in ethical manner
b) Reduce chance of conflict of interest
c) Build effective relationship with stakeholder
Q3) What is the most effective CG practices of M&S?
a) Build relationship with stakeholders to improve financial performance
b) Develop strong brand image at international marketplace
c) Increase productivity of workers to gain competitive advancement
Q4) What is the main reason behind failure of corporate governance of M&S?
a) A move to restructure
b) Ineffective plans for international expansion
c) Inappropriate human resource allocation
Q5) According to you, which strategy helps in improving CG practices of M&S?
a) Prioritize risk management

b) Understand the concept of human resource allocation
c) Increase diversity
Q6) What are the main factors M&S needs to concern while developing corporate
governance?
a) Internal capabilities of business
b) Competitive strategies
c) Corporate goals
Q7) Which is the most effective CG practices that M&S needs to implement in its
business?
a) Importance of non-executive directors on the board
b) Increase percentage of non-British directors in board
c) Increase number of board meetings
Q8) Do you think M&S gains more competitive advantage as compared to its
competitors?
a) Yes
b) No
Q9) Provide recommendation for M&S in improving its CG practices for further
expansion of business?

CHAPTER 4: CRITICAL DATA ANALYSIS
4.1 Critical review on the basis of secondary research
In this part, discussion is made on articles and data gathered through secondary sources in
critical manner. For this purpose, viewpoint of various authors and researchers are evaluated to
draw valid outcomes and conclusion.
Role of corporate governance policies and practices
According to perception of Robson and Farquhar (2014), it has evaluated that corporate
governance practices of a company ensure that business organizations run in a transparent and
ethical manner. By creating transparency and accountability, it helps in promoting good and
effective business practices. In M&S these CG policies are formulated by Board of Directors and
management by addressing some main aspects. It includes Election of directors to the board; The
proportion of executive and non-executive directors on the board; Shareholder rights; Disclosure
of information on finance and operations; Composition of audit, nominating as well as
compensation committees; Executive remuneration; Board meetings and operations. These
practices are made by focusing more on interest of each stakeholders and their benefits. This
would help M&S in getting their cooperation of stakeholders for running business smoothly, in
international marketplace. Along with this, CG practices also provide numerous ways by which
respective company can attain a good position at global level also.
Relationship between stakeholder relationship and financial performance of business
As per opinion and views of Meng, Zeng and Tam (2013), it has analyzed that there is a
strong connection between stakeholders and financial performance of a company. Organizations
which act more responsibly toward their stakeholders’ interest and benefit, get more advantage to
run business successfully. As these stakeholders give support for raising profitability and
increasing market-share as well. In this regard, M&S concerns more on satisfying stakeholders'
goals and develop environments which encourage ethical behaviors. In today’s global
environment, relationship between stakeholders and business lies at the heart of corporate
sustainability and profit making. Companies having strong and effective stakeholder
relationships are considered as more profitable and sustainable than other organizations.
Therefore, M&S focuses exclusively on its bottom line to develop relationship with all its
stakeholders. It includes management, Board of Directors, suppliers, vendors, distributors,

investors, employees and loyal customers. They all give their support to M&S in enhancing its
profitability and improving financial position of business.
Ways by which Corporate governance policies can be implemented within Marks and
Spencer
According to Chen, Feldmann and Tang (2015), it has evaluated that for implementing CG
practices and policies, M&S needs to formulate effective strategies. It includes appointment of
Competent Board Members, streamlining the process, prioritise Risk Management and more. In
this regard, giving priority to risk management help in identifying factors which may arise issues
in business. It also provides alternative strategies through which respective company can
improve its business performance. In addition to this, increase diversity helps in introducing high
talented workforce within business. These workers give more contribution in improving
performance and enhancing productivity of business as well.

4.2 Critical review on the basis of primary research
In this part, analysis of primary data is created which is gathered by taking feedback of
various respondents on a chosen topic. This would help in making effective decision for
improving performance of a company. In context with M&S, for improving its corporate
governance practices, data analysis can be created in following manner:
Theme 1: Impact of stakeholders on financial performance of a company
Q1) Do you think relationship of a company with its
stakeholder’s impact on its financial performance?
Frequency
a) Yes 8
b) No 2
Interpretation: Companies, in order to run their business in an effective manner it is
crucial that they develop better relationship with their stakeholders. Therefore, with the help of
this above mentioned graph it can been evaluated that according to 8 out of 10 respondents, they
believe that proper relationship somewhat puts an impact on financial performance as they are
the one who provide firm with funds for executing their action plan. On the other hand, rest 2 out
of 10 respondents thinks that stakeholders don’t have to do with providing finance because their
role is to just work for the firm.
a) Yes b) No
0
1
2
3
4
5
6
7
8
9
Column B

Theme 2: Crucial role of CG in a company.
Q2) What is the main role of corporate governance within an
organization?
Frequency
a) Run business in ethical manner 5
b) Reduce chance of conflict of interest 2
c) Build effective relationship with stakeholder 3
Interpretation: Within the organisation, there are many roles and responsibilities that are
being performed by Corporate Governance such as to improve overall performance of a
company. Thus, from the above graph it can be understood that as per the view point of 5
respondents out of 10 which is highest in number think that prime role of CG is to run business
in an ethical manner, whereas other 2 believes that if company has proper Corporate Governance
than chances of conflict can be reduced. Lastly, according to 3 respondents maintaining proper
Corporate Governance is effective in building better relationship between stakeholders.
a) Run business in ethical manner
b) Reduce chance of conflict of interest
c) Build effective relationship with stakeholder
0
1
2
3
4
5
6
Column B

Theme 3: Most effective Corporate Governance practice of Marks and Spencer
Q3) What is the most effective CG practices of M&S? Frequency
a) Build relationship with stakeholders to improve financial
performance
5
b) Develop strong brand image at international marketplace 3
c) Increase productivity of workers to gain competitive
advancement
2
Interpretation: With the change in course of time, doing business has changed drastically
and with enhanced tools and technologies firm are gaining competitive advancement. Above
mentioned pie chart shows that Corporate Governance of Marks and Spencer follows different
practices and according to 5 respondents out of 10 thinks that most of the effective practice
adopted by M&S is building effective relationship with stakeholders and it is further assisting in
enhancing financial performance. Whereas, other 3 respondents believe that through Corporate
Governance company can develop strong effective brand image at international market can be
build. Rest 2 respondents think that CG can helps Marks and Spencer in enhancing productivity
of employees which ultimately works for gaining competitive advancement.
a) Build relationship with
stakeholders to improve
financial performance
b) Develop strong brand
image at international
marketplace
c) Increase productivity of
workers to gain
competitive advancement

Theme 4: Main reason behind failure
Q4) What is the main reason behind failure of corporate
governance of M&S?
Frequency
a) A move to restructure 4
b) Ineffective plans for international expansion 3
c) Inappropriate human resource allocation 3
Interpretation: Every business has to face some or the other failure in the entire period of
their business. There can be different reasons for failure. Thus, with the help of above mentioned
graph it can be evaluated that as per 4 respondents out of 10 they believe that moving towards
restructure of business can create issues for Marks and Spencer. Other than this, 3 respondents
think that ineffective plans for international expansion is the main reason for failure because they
expanding business at international level requires high level of planning and effective strategies.
Whereas, rest of the three believes that because of inappropriate human resource allocation
failure can be faced by a company.
a) A move to restructure
b) Ineffective plans for international expansion
c) Inappropriate human resource allocation
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Column B

Theme 5: Strategies required for improving Corporate Governance
Q5) According to you, which strategy helps in improving CG
practices of M&S?
Frequency
a) Prioritize risk management 4
b) Understand the concept of human resource allocation 2
c) Increase diversity 4
Interpretation: Strategies are required to be made by an organisation so as to gain
competitive advancement. Therefore, Corporate Governance helps company in doing so. From
the above pie chart mentioned above it can be evaluated that according to 4 respondents out of
10 believes that Marks and Spencer on a prior basis must develop strategies related to risk
management. Apart from this, 2 of the respondents think that in order to run business in an
effective manner directors of the firm first understand concept of human resource allocation so
that better outcomes can be gained.
a) Prioritize risk
management
b) Understand the concept
of human resource
allocation
c) Increase diversity

Theme 6: Main factors Marks and Spencer required to concern.
Q6) What are the main factors M&S needs to concern while
developing corporate governance?
Frequency
a) Internal capabilities of business 5
b) Competitive strategies 3
c) Corporate goals 2
Interpretation: While operating a business there are many factors that are to be
considered by a company so as to give effective services and facilities to its customers. From the
above mentioned graph it has been understood that according to 5 respondents out of 10 they
believe that internal factor of capabilities of business is the factor which should be undertaken
for better growth. Whereas, 3 of them have chosen the option “b” which means as per their
concern competitive strategies is important. Lastly, 2 of them are saying that corporate goals is
the main factor which is needed to be focussed by Marks and Spencer.
a) Internal capabilities of business
b) Competitive strategies
c) Corporate goals
0
1
2
3
4
5
6
Column B

Theme 7: More competitor as compared with other companies.
Q7) Which is the most effective CG practices that M&S needs
to implement in its business?
Frequency
a) Importance of non-executive directors on the board 3
b) Increase percentage of non-British directors in board 3
c) Increase number of board meetings 4

Interpretation: It has been interpreted from this graph that out of 10 respondents, 3 give
suggestion to M&S to concern on including non-executive directors in board meeting. This CG
practice will help in developing effective relationship with stakeholders. While other 3
respondents give advice to include non-British directors in board meeting. This would help in
developing interest of overseas partners in making investment in business for further expansion.
Other than this, remaining 4 respondents assist to increase number of board meeting with
stakeholders. It would help in transforming information to each holder in given period of time. In
addition to this, it will also provide opportunity to develop transparency and accountability in
business as well.

Theme 8: More competitor as compared with other companies.
Q8) Do you think M&S gains more competitive advantage as
compared to its competitors?
Frequency
a) Yes 7
b) No 3
Interpretation: Most of the companies establish their business for gaining competitive
advancement as compared with rival firms. Therefore, with the help of the above mentioned
report it can be evaluated that as per the view point of 7 respondents as they are saying “Yes”,
which means Marks and Spencer is giving a tough fight to its rival companies. Whereas, other 3
respondents out of 10 are saying “No”, which means according to them Marks and Spencer has
not improved its performance because of which other rival companies are sustaining a better
position at market area.
Therefore, with the help of primary research it has been analysed that it helped in
knowing role of Corporate Strategy Governance while operating business in an effective way. It
assists in maintaining a better environment by implementing code of ethics within the workplace.
Whereas, through secondary research, researcher gets to know and have more detailed about
specific topic.
a) Yes b) No
0
1
2
3
4
5
6
7
8
Column B

CHAPTER 5: RECOMMENDATION AND ACTION PLAN
5.1 Recommendation
As through this research, it has concluded that stakeholder relationship adversely effects
the financial performance of a company, both in negative and positive manner. Here, corporate
strategy and governance plays an importance role in developing and managing sustainable
position of business. It provides a number of ways for serving satisfaction to stakeholders.
Therefore, it is recommended to M&S to concern on this factor while developing its corporate-
governance. It includes the effective system of rules, processes and practices, through which
respected firm can direct and control its operations. In addition to this, CG practices also
significantly involves the process of balancing the stakeholders’ interests. These practices will
help in providing proper guidelines or plan to managers for managing and controlling its
business operations. Through this process, respective company will gain advantage to fulfil its
corporate goals and objectives in effective manner. It will create value of business in
international marketplace, which seems to be beneficial for holding interest of stakeholders
within business for longer period.
Furthermore, for improving current CG practices to gain competitive advancement and
cooperation of stakeholders towards completion of major project, it is recommended to Board of
Directors to concern on some main factors. It includes increase diversity at business, prioritize
risk management plan, understanding the concept of human resource allocation and more. Since
Marks and Spencer mainly faces issues due to lack of diversity in terms of effective stakeholders
and experienced employees. Therefore, Marks and Spencer must concern on giving recruitment
to high-talented workforce, who are experienced in dealing with national and international
customers in their languages. They will help this retailer in providing best customer services and
improve its brand image. In addition to this, diversity at workplace enhance productivity of
workplace also, by giving high contribution on accomplishment of mentioned goals and
objectives.
In addition to this, to gain high commitment of workers and utilise human resource, it is
recommended to managers to identify strength and weaknesses of employees on individual basis.
This would help in distributing roles and responsibilities to each worker as per their skills and
capabilities. In addition to this, managers can also identify requirement of training programs for
improving knowledge and reducing skill gap among workers. It will provide job satisfaction

under employees and motivate them to work more hard, for providing best services to customers.
Through effective human resource allocation, M&S can gain support of workers and staff
members in generating idea for retaining loyal customers in business. In addition to this, it also
reduces staff turnover rate which helps in decreasing cost of production as well. As experienced
and talented workforce will provide high-quality of services.
Furthermore, for preventing failure of corporate-governance, it is recommended to M&S to
concern on developing risk management plan. It will include a number of alternative strategies
which company can use in case of failure of any policy. It will also help in estimating future
risks and issues which may impact on business negatively. This would help in preparing
management plan for responding towards such issues. Therefore, concerning on these factors-
human resource allocation, increase diversity and prepare risk management plan, will aid M&S
in expanding business in overseas more appropriately. In order to solve issues stakeholders can
use different kinds of strategies which can help company and other members such as listening to
problems and what employees say this will assist in stakeholders in understanding what opinions
they have. Other than this, discussing about the matter one on one can ease complexity and will
further aid in maintaining better relationship with other staff members and subordinates.
5.2 Action Plan
This part of research includes entire activities which are required to address issues and
attains objectives of a project. It provides a guideline to researchers in what manner they have to
perform, for completing each activity in set period of time. In context with present project, which
is based on developing policies for improving CG practices of M&S, the major activities are
mentioned in given action plan:-
Steps Description
Step 1: Selection of
topic
This is an initial step where researchers are required to choose a
particular topic for conducting a research. In this regard, the main
topic of present research is based on concept of corporate-
governance, for which M&S has been chosen.
Step 2: Framing aim
and objectives
After choosing the main topic, another activity of action plan states to
frame proper aims and objectives. This would help project-makers to

analyze what they have to achieve and in which area investigation has
to be done. In this regard, the main aim and objective of present
research-
Aim “To investigate the impact of stakeholder relationship on
financial performance of business- A study on Marks and Spencer”
Objectives
 To identify role of corporate governance policies and
practices in an organization
 To determine relationship between stakeholder relationship
and financial performance of business
 To recommend how corporate governance policies can be
implemented within Marks and Spencer
Step 3: Conducting
literature review
After formulating aim and objectives, next step is to access
information from various secondary resources to conduct literature
review. This would help researchers in analysing perception of
various authors for the importance of CG practices for M&S in
running its business successfully.
Step 4: Research
method selection
It provides methods by which relevant information can be gathered
and analyzed for increasing efficiencies of a research.
Step 5: Data collection Here, researchers will choose methods for gathering information on
chosen topic. It includes primary and secondary methods of data
collection. In present research, both sources are used for collecting
information.
Step 6: Data analysing After collecting the data from primary and secondary sources, at this
stage, critical discussion is made from researchers' point of view. This
would help in analyzing data more precisely.
Step 7: Drawing
discussion and
recommendation
It is the main stage of research, where discussion about key findings
has made. Furthermore, on the basis of discussion, recommendation
has provided to M&S for improving its corporate-governance

practices.
Step 8: Edit as per
client feedback
After completing the research, some modification can be done in
research as per client requirement for improving its efficiencies and
meeting their criteria.
Step 9: Final
submission
Here, final project needs to be submitted after completion of above
stages.
Task Name Duration Start Finish
Selection of topic 2 days Fri 1/18/19 Mon 1/21/19
Framing aim and objective 3 days Tue 1/22/19 Thu 1/24/19
Conducting literature review 2 days Fri 1/25/19 Mon 1/28/19
Research method selection 4 days Tue 1/29/19 Fri 2/1/19
Data collection 5 days Mon 2/4/19 Fri 2/8/19
Data analyzing 7 days Mon 2/11/19 Tue 2/19/19
Drawing discussion and
recommendation 4 days Wed 2/20/19 Mon 2/25/19
Edit as per client feedback 3 days Tue 2/26/19 Thu 2/28/19
Final submission 2 days Fri 3/1/19 Mon 3/4/19

CONCLUSION
It has been concluded from this research that there is a strong connection between
company’s relationship with stakeholders and its financial performance. For this purpose, a
company implements various corporate governance policies to maintain interest of stakeholders
and develop relationship with them. It includes increasing number of board meeting, involving
participation of non-executive and overseas partners in decision-making processes and
maintaining interest of all. This would help in developing effective and strong relationship with
stakeholders. In addition to this, to reduce chance of failure of any corporate governance
policies, a firm also used to make risk management plan and concern on human resource
allocation also.

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Online
M&S feeling the heat as winter approaches. 2018. [Online]. Available Through:
<https://www.theguardian.com/business/2018/nov/04/marks-spencer-feeling-heat-
strategic-update-restructuring>.

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