Corporate Governance and Its Impact

The provided assignment is a comprehensive review of corporate governance practices. It includes an analysis of several research papers and articles that discuss the impact of governance on companies' performance, strategic management, and stakeholder relationships. The assignment also touches upon the importance of public value governance and its potential downsizing of democracy. Additionally, it explores the concept of project governance and its origins, as well as the determination of environmental, social, and corporate governance indicators for sustainable performance.

CORPORATE STRATEGY AND
GOVERNANCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Aims and objectives...............................................................................................................3
Rationale of study...................................................................................................................3
LITERATURE REVIEW................................................................................................................1
DISCUSSION..................................................................................................................................4
CRITICAL REVIEW.......................................................................................................................5
RECOMMENDATIONS AND ACTION PLAN............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Corporate strategy and governance consists of procedures that are designed to structure
authorization, balance social control to provide accountability to shareholders. It includes
balancing profitability with sustainability. Recognition of external stakeholders is important
component of corporate governance which includes consumer, suppliers, vendors and group of
all those individuals who fall outside the internal working of an organisation (Klettner, Clarke
and Boersma, 2014). Building relationships with these people is the most concerned part of
company as they help increasing value on business and develop ability of organisation to
produce high quality and fairly priced product, which also helps in increasing customer
satisfaction.
Corporate governance structure also lays a focus on internal stake holders such as
workers, board of directors and administration. Building relationship with these people is
important for long term success and growth of company. It also provides accountability to both
external and internal stake holders; it includes management of obligation of individual stake
holder and company.
Corporal Social Responsibility is one of the methods of corporate governance, which
includes social and legal obligation towards environment where business is operating. CSR is
beneficial for both society and environment and company itself (McCahery, Sautner and Starks,
2016). It helps company in broadening relationship between individual and cooperation, boost
motivation and helps workers and employers to become more connected with each other. It also
helps in building relationship with consumers, stake holders, suppliers and board of management
in a company.
Corporate social initiatives of company include donations to charitable organisation,
organising workshops, seminars or exhibitions to serve environment, enterprise funded advocacy
campaigns, donations to charity organisations and providing goods on sale, funding any program
related to some disease or disorder to help people in fighting them, charity done by company to
behaviour change programs etc. All these initiatives help company in creating good status for
them and also helps in increasing their brand value (Mason and Simmons, 2014).
Many consumers have a belief that apart from making Profit Company should also be
engaged in social activities, which help arrangement in creating consumer loyalty and gaining
trust of customers, which affect business growth and also help governance in expanding their
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market. Company can also know more about consumer regarding their beliefs, taste, preferences
and liking. CSR also includes environment management, economic sustainability, authorised
stake holders, labour management and their working condition, communal group relations, basic
human rights, gender equality and improved reputation of organisation (Marks and Spencer
Corporate Social Responsibility, 2017).
Marks and Spencer company operates business in United Kingdom and have more than
one thousand outlets across country. Business entity follows corporate governance to fulfil the
expectation of its customer and deliver long term benefit to stake holders, co-workers and
environment in which they operate (Formentini and Taticchi, 2016). Company is also engaged in
following Corporate Social Responsibility towards environment in which they operate which
provide company with benefits like competitive advantage, such as increased access to capital
and markets, high growth in sales and profit, less expenditure in operation costs, increase in
productivity and efficiency of employees, strong human resource base, increase in quality and
features of products.
Marks and Spencer also operates business online and believed that an effective
governance are realised through leadership and motivation as working together ensures high
quality decision making in all areas concerning strategy, performance, responsibility and
accountability. These actions performed by company are sustained and controlled, which drives a
culture of continuous improvement in processes and performance. Corporate governance has also
helped company in building trust, which is developed by doing right things in right place and
ways (Filatotchev and Nakajima, 2014.). It has helped them in creating clear set of rules and
regulations in which stakeholders, board management and directors have aligned incentives
which has led to organisation success.
Marks and Spencer have always been responsible towards their consumers, employees,
suppliers and environment by taking care of every sensitive issue and doing charity for society,
problems related to weather change, utilising waste materials which has helped them in build a
good reputation and image for themselves. CSR activities like donation to charitable
organisations are done through company’s local store. They are also involved in donating used
clothes and surplus to charity new life which funds medical research, support and awareness
campaign of nurse and preparing equipment for disabled and handicapped child.
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Marks and Spencer also donate extra produced goods or garments as goodwill exchange
to local charity stores or shelters, which has helped in building goodwill for them across country
(Too and Weaver, 2014). They are also engaged in supporting their customers in every possible
way from recovering through disaster or serious climate change in country. They are also
engaged in an effective management of resources, which includes reducing waste products, use
of plastic carry bags and making sure that consumers throw rubbish in proper place without
sending it to landfill.
Organisation is also engaged in embracing all cultures, nationalities, races and religions
and also they do not support any country’s political or social body, which can create chaos in an
environment and also this strategy is applied to all products. They are also engaged in building
customer relationship by providing with quality products and services, which has helped them
to expand their market to increase sales across country (Amran, Lee and Devi, 2014).
Aims and objectives
 To explore the impact of corporate governance on growth of Marks and Spencer
 To investigate effect of corporate social responsibility on customer satisfaction
 To explore corporate social initiatives taken by Marks and Spencer
 To analyse effects of Corporate Social Responsibility on firm’s reputation
Rationale of study
Mark and Spencer has been involved in Corporate Social Responsibility to build relations
with customers but currently is facing a problem as they have lost core engagement with
consumers as competitors and substitutes are increasing. Organisation is aware of risk and
danger and engaged in developing products according to needs and wants of consumers. They
are also facing problems related to management of external and internal stake holders, which
helps company in creating quality and unique products (Ayuso and et.al., 2014.). For managing
them, a company is taking initiatives like allowing flow of informal communication would lead
to develop friendly relationship between them.
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LITERATURE REVIEW
Impact of corporate governance on growth of Marks and Spencer
According to (Chan, Watson and Woodliff, 2014). Corporate governance helps in
managing and directing employees, board of management and stakeholders of company. It helps
them in balancing individual, societal, economic as well as financial targets and objectives. They
also use it as a mechanism to create interaction between shareholders, suppliers and senior
administration of company which helps in shaping corporate performance and efficiency of
individual employees which also helps organisation in achieving business goals and targets.
However, Glass, Cook and Ingersoll, has analysed that Corporate governance also helps
company to make strategic decision and gives them ultimate authority and responsibility to
perform task and achieve their predetermined objectives. It has helped company in growing their
share in the market. It also includes transparency in transaction with investors, which ensures
strong and balanced economic development and also helps in creating good reputation in market.
It has also helped company in reducing capital costs, which makes them to save financial
resources for better development of product, which can satisfy consumer needs and wants. It also
assists company in enhancing leadership skill in workers, which has helped them to increase
their confidence and motivational level (Mason and Simmons, 2014). It also boosts morale of
employees to perform better.
Company has a policy to involve shareholders and employees in decision making process
of organization, which has helped them in gaining new and innovative ideas purposed by
members that has led to organisation growth and success. Also, good governance for them
includes better reward system whether monetary or non-monetary for workers, which helps them
in retraining talented employees in an organisation and has helped company in expanding their
market share across world. Company is also engaged in preparing products, which do not harm
religious and cultural sentiments of consumers, which will help them in building relationship
with them.
Creation of profit is main aim of company but for accomplishing this objective an
organisation also has to fulfil the interest of shareholders. Enterprise is involved in providing
fair return to external and internal stake holders those who has helped them in creating image of
good brand and has also increased sale of their product. It also helps its suppliers to cut cost,
increase their efficiency, and perform task ethically which help company in attracting more
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consumer and also organisation is involved in donating money and goods in charitable
organisation, extra production to small shops and shelters, which helped them in growing
(Formentini and Taticchi, 2016).
Effect of Corporate Social Responsibility on customer satisfaction
Corporate Social Responsibility towards consumer includes understanding of their needs
and creating products according to them. Organisation is involved in developing innovative and
unique goods for consumer to satisfy their demands, which has helped business entity in
increasing their sale of products. However, company is involved in building strong relationship
and building trust with customers so that they purchase their goods and also encourages more
people to buy commodity.
Most important concern for company is to gain customer satisfaction. From Corporate
Social Responsibility, company helps consumer to improve their living standards by delivering
high quality as well as treating customers equally in all aspects of business interaction.
Organisation must meet their expectation by delivering right products at proper time and place
(Too and Weaver, 2014). However, satisfaction can also be achieved by listening to complain
and queries of consumers, which are bothering them. Hearing feedbacks of individuals can help
organisation to increase trust and helps in creating consumer loyalty towards products.
Organisation should be engaged in fair and transparent dealing with people, they should not use
unfair practices and fraud methods to increase revenue, which can deteriorate their growth and
also creates a negative image in eyes of consumer.
For gaining customer satisfaction, company should produce and deliver product on time
and also should improve quality of goods produced by them. Suppliers should provide
organisation with good quality raw material and goods for producing the best quality
commodities and services. Consumer has diverse buying preferences but majority of them will
choose quality goods over non branded one and also it will help company in increasing sale of
their goods.
However, company should also focus on purchasing power of individuals, if prices are
set only to earn large revenue, people would buy other substitutes' product with same quality but
at lower prices. Customers buy products only when they think it can benefit them, so
organisation should meet expectations of people and design products, which creates value for
people. This will also help company to retain existing consumers and develop a brand image for
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their goods. They should also be provided with after sales services which is important for
business growth. Making sure that organisation is in touch with customer, which enables firm to
gain competitive advantage. Individual’s feedback is the most important for company as by this
they would be able to know about their strength and weaknesses.
Corporate social initiatives taken by Marks and Spencer
According to Ayuso Company has always taken responsibility to serve consumers,
workers, suppliers, partners and local groups, which shows their core value to individuals like
quality service, innovation and trust. Organisation has been engaged in many corporate activities,
which has led to growth of company and building good image of institution. They have taken
initiatives such as donating money or goods to charitable organisation. Enterprise is indulged in
distributing returned cloth and business surplus to small shops which has also helped them in
creating good brand value.
Company is also engaged in funding charitable organisation run for partially disabled or
terminally ill children. They donate their extra food to NGO's running for children and funding
those individuals who have been suffered due to natural calamities like flood, draught disaster
etc. (Glass, Cook and Ingersoll, 2016). However, organisation has also been a part of a five year
eco plans, which aims to help consumers and suppliers in reducing emissions. It includes
producing of low carbon products and services, which can help an individual to reduce energy in
their homes. This can also make them cut their cost related to energy supply.
Organisation has also taken initiatives like cut short the use of plastic poly bags to make
world a better place to live and ensuring that consumer dispose their clothing without sending it
to landfill. Making use of products, which can be recycled and ensuring that company use
recycled plastic to make various products related to home or clothing (Amran, Lee and Devi
2014). Company is also provides healthy work place to employees, which has supported them to
retain existing talented workers. They work with an aim of not hurting any religious or cultural
sentiments of workers and follows a relationship of transparency with them.
Effect of Corporate Social Responsibility in building good reputation
According to Mason and Simmons Corporate Social Responsibility includes where
company can explore market to survive in long term success, policies and practices through
which it is operating. However, organisation can build good image and reputation by facilitating
CSR activities. Organisation is engaged in providing donations to many charitable trusts,
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hospitals, NGO’s, or funding organisation, which is involved in treating disabled children that
has helped company in creating its brand value and positive image in eyes of consumer. To build
corporate brand image they need to provide quality service and product to customers at right
place and appropriate time (Chan, Watson and Woodliff, 2014).
Companies who are engaged in developing products should take care of consumer needs
and preferences. Products should be designed on basis of wants, likings, and demands of
customers which will help them in building good image in the market and as a result their market
share will also increase. Goods should be developed keeping in mind culture, religious
sentiments of consumer, no one should be hurt by use of products. To build image of popular
brand, an organisation should also provide their workers with safe and healthy working condition
where employees have an active participation in decision making process of company, which
would result in boosting their morale, increase in motivation level and will also help organisation
in retaining them. Less employee turnover will assist in building a good corporate image of
company in market.
According to Glass, Cook and Ingersoll, for building brand Image Company should be
indulged in listening to complain and queries of customers. Individual’s feedback is very
necessary for organisation to know about strength and weaknesses of its product. Delivering
them quality products will help in gaining customer loyalty and sale of goods will also increase
(Too and Weaver, 2014). Transaction between employers and employees, consumers and
suppliers should be done fairly, there should be no involvement of unethical practices by
organisation, which will help them in increasing brand value of their products and will also
reduce worker turnover, which would result in higher and better revenue.
DISCUSSION
Secondary and primary research undertaken to analyse issues and problems
Primary research of the company can specify all the information related to consumers and
potential customers. Data related to them is collected by interviews, which can be telephonic or
personal, surveys, questionnaires, visitors to competitors’ location etc. These type of information
are generally open ended and allows long interviews which involves small group of people. Data
collected is specific in nature. This type of research requires much time and generally includes
high cost as it involves personal interaction with other people.
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Secondary research is basically that information, which has already been collected,
gathered, unionised and published by specific companies. It includes data collected by
government authorities, trade unions or other business in dynamic and uncertain environment.
This information can also be obtained by using published journals, magazines, newspapers,
organisation publications etc. (Formentini and Taticchi, 2016). This type of data is easy to collect
and less expensive in comparison to primary research. Information can also be collected about
organisation through internet, or through use of authentic websites.
QUESTIONNAIRE
Q1. Do applicable corporate governance principles are used in companies’ act? Are they easily
available to shareholders and investors?
 Yes
 No
Q2. Is company continuously involved in CSR activities and does it benefited to employees,
stakeholders and suppliers?
 Yes
 No
Q3. Does CSR activities has improved organisations corporate image and given them a status
and symbol?
 Yes
 No
Q4. Do board of management have role to play in corporate governance? And how does it help
in differ them from other organisations.
 Yes
 No
Q5. Has industry clearly defined its dividend policy?
 Yes
 No
Q6. Do company have implied mechanism for resolving conflicts and misunderstandings
between employers, employee, stakeholders, suppliers etc.?
 Yes
 No
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Q7. Does your organisation is involved in providing ethic and corporate training to workers?
 Yes
 No
Q8. Do company work on its vision and mission related to corporate strategy and governance?
 Yes
 No
Theme-1 Corporate governance and principles
Do applicable corporate governance principles are used in
companies’ act? Are they easily available to shareholders and
investors? Frequency
Yes 13
No 2
Yes
No
Interpretation: From the above pie chart, it has been analysed that 13 employees agrees that
corporate governance principles are used by an organisation and are easily accessible to
shareholders and investors, who helps in retaining and attracting new funders. It has also been
seen that 2 workers are not agreed on above statement. Reasons for their disagreement may be
different from each other.
Theme-2 Companies involvement in CSR activities
Does company is continuously involved in CSR activities Frequency
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and has it provide benefits to employees, stakeholders
and suppliers?
Yes 10
No 5
Yes
No
Interpretation: From the above data analysis chart, it has been interpreted that 10 workers of
Marks and Spencer agrees with the fact that company has been continuously involved in
activities related to corporate social strategy, which has also helped in providing benefits to
shareholders, employees and suppliers whereas 5 workers also disagreed with above statement.
(Too and Weaver, 2014).
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Theme 3: Improved corporate and brand image
Does CSR activities have improved organizations corporate
image and given them a status and symbol? Frequency
Yes 9
No 6
Yes
No
Interpretation: In accordance to above pie chart, it has been analysed and evaluated that 9
employees agreed that Corporate Social Responsibility has helped company in improving their
corporate image and also assist them in establishing their image and given them a brand value.
However, 6 workers are also not satisfied with company’s strategies related to CSR.
Theme-4 Role of board of management
Do board of management have a role to play in corporate
governance? And how does it differ them from other
organisations. Frequency
Yes 11
No 4
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Yes
No
Interpretation: From the above pie chart, it has been interpreted that 11 employees agrees on
the condition that board of management has role to play in developing corporate strategies and
governance, it also provides them competitive advantage and differs them from other
organisations whereas 4 workers are not agreed with the above statement.
Theme-5 Dividend policy
Has industry clearly defined its dividend policy? Frequency
Yes 12
No 3
Yes
No
Interpretation: Above data analysis chart, evaluate and interrelate that 12 employees agrees on
the statement that Marks and Spencer has clearly defined their dividend policy after contributing
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to Corporate Social Responsibility activities like donation to charitable organisation, providing
goods to small shops etc. However, 3 employees do not agree to above statement, they feel that
organisation don't perform such activities or functions.
Theme - 6 Companies mechanism for resolving conflict
Do company have implied mechanism for resolving
conflicts and misunderstandings between employers,
employee, stakeholders, suppliers etc.? Frequency
Yes 9
No 6
Yes
No
Interpretation: From the above pie chart, it has been analysed and shown that 9 employees
agree on the situation that company has implied proper mechanism for resolving conflict
between workers, employers, stakeholders and suppliers, who helps them in achieving
operational efficiency and also supports their growth while 6 employees are not satisfied with
above statement (Glass, Cook and Ingersoll, 2016).
Theme – 7 Ethical training of employees
Does organization are involved in providing
ethic and corporate training to workers? Frequency
Yes 8
No 7
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Yes
No
Interpretation: From the above information provided, it can be evaluated that 8 employees
agreed with the fact that company is involved in providing ethical training to employees who
helps them in learning honest practices. However, 7 workers are not agreed with the above
statement.
Theme – 8 Vision and mission
Do company works on its vision and mission
related to corporate strategy and governance? Frequency
Yes 11
No 4
Yes
No
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Interpretation: From the upper data analysis chart, it has been evaluated that 11 employees
agrees on the condition that Marks and Spencer rely on their vision and mission related to
corporate social responsibility, while there are 4 workers are highly dis-satisfied with above
information.
CRITICAL REVIEW
Analysis of result regarding primary and secondary research
Marks and Spencer is the most popular company in United Kingdom who has expanded
their market across the world. Organisation is involved in performing corporate social
responsibility since a long time and also have objectives which are related to achieving and
attracting consumers by creating a good brand value (Bell, Filatotchev and Aguilera, 2014).
Primary and secondary research for the company was based on aim like to explore the impact of
corporate governance on growth of Mark and Spencer and to investigate effect of corporate
social responsibility on customer satisfaction. Analysis was also conducted on the basis of
exploring corporate social initiatives taken by organisation and to analyse effect of corporate
social responsibility in building good reputation.
For finding out above aim and targets help is taken of both primary, secondary research
has been taken. Survey was conducted using questionnaire to find out problems and issues faced
by company and also the effectiveness of organisation policies and strategies (Ahola and et.al.,
2014). Questionnaire is being part of primary research and has covered various aspects of
company. They have involved questions like does corporate principles are being implemented
into company’s act. Role of board of management in decisions relating to strategies and also
mechanism related to solving issues between employees, employers, consumers and suppliers.
Analysis of the above data has shown that company is being continuously involved in
activities like doing charities, funding various organisations, providing goods and commodities
to small shops. Many employees have agreed upon that company performs its social and cultural
duty well. Data interpretation has also evaluated that various workers agrees on the fact company
has implemented effective mechanism which has helped them in resolving misunderstandings
and conflicts between internal and external people (Ayuso and et.al., 2014). This practice has
helped company in achieving and improving productivity and efficiency which has helped them
in gaining and attracting consumers. Questionnaire for survey was much specified to the
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objectives of the company and has shown that organisation has good corporate image but also
some members are not agreed with company’s statements.
For finding problems and issues related to company strategies various other methods like
surveys, interviews, observations, focus-group method was also implemented by the organisation
(Chan, Watson and Woodliff, 2014). Enterprise continues interrogate person on telephone or
face-to-face which has helped them in knowing strength and weaknesses relating to them. This
has helped company in collecting quality information. Focus-group method has helped industry
in knowing about common interests of small group. It also consists of combine opinion and
perspectives which has helped enterprise in developing new ideas and products. It has also
facilitated their growth and supported them in achieving their targets. Observation method is also
used by company to know about employee’s satisfaction towards policies and effectiveness of
corporate strategies undertaken by organisation. This research is particularly based on critically
analysing the behaviours of management, employers, workers towards rules and regulations,
initiatives, responsibilities undertaken by an organisation.
Questionnaire survey method has also helped Marks and Spencer in knowing about
company’s vision and mission which is based on strategic goals and number of employees
agreeing on that. The research has laid emphasis on targeted issues of company. Data has been
collected on emerging themes of organisation like vision and mission are according to goals,
proper distribution of dividend after contributing to society. Relevant information related to
company collected through this method is more authentic and high in quality, as it has been
gathered by researcher personally (Kocmanová and Šimberová, 2014). It has also touched the
keen aspects of company like role of corporate governance in increasing companies' reputation
and brand image. Most of the workers have agreed in that performing social responsibilities
towards environment has helped Marks and Spencer in building good will in the society. It has
also been evaluated that, an enterprise has been involved in performing charity tasks like
donation to orphanages, NGo's etc. This data has been personally collected by employees of the
company.
Primary research has also helped in collecting authentic feedbacks, as they are gathered
personally and rely totally on the views and opinions of employees. Company has a wider idea of
their weaknesses and strengths. By this organisation is able to know that training related to
following every culture and performing social responsibilities towards society are not being
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adhered properly and most of the workers are not encouraged to actively participate in communal
activities (Young and et.al., 2014). Training of workers is necessary to improve company’s
relationship with consumers and it also helps in building healthy friendship among superior and
sub-ordinates which can make their work more effective. This type of data can be easily
interpreted by marketers and also helps company in gaining competitive advantage.
Secondary data collected for the company from articles, published journals and
magazines has shown that, Marks and Spencer has always covered up the responsibilities related
to consumers, suppliers, workers, consumers and communities. Organisation is fully trying best
to follow their vision and mission which is to provide quality service and product to customers
and also expand their market across the globe. Enterprise is taking care of all the sensitive issues
related to sustainable development, climate change, charity for the community, management of
industrial waste or health of people and ethical trading (Honoré, Munari and de La Potterie,
2015).
Donations are made by company to charitable organisations and also it provides used
clothes and goods to new life: this is an institution which organises campaign and provides vital
support to fully or partially disabled children or young adults. Organisation has fulfilled its social
responsibilities by donating money or products like clothes or food to small local stores and
clothing samples are given by industry to shelter which is one of the charity partners and
provides support to homeless and old individuals. Often Marks and Spencer Company may
provide goods or garments taken back to local charity stores. These practices have helped
company in creating good relationship with society and consumers (Manasakis, Mitrokostas and
Petrakis, 2014). Secondary research has also shown that company is actively involved in
providing date expired food to Fare Share which is a community food network that distributes
extra and harmful eating material to vulnerable people and also to those individuals who can't
afford to buy items.
Research shows that Marks and Spencer is critically involved in fulfilling needs and
demands of people those who have suffered damages due to natural disaster or have lost
something huge in calamities. They provide support through stores, offices or suppliers.
Activities like management of waste and looking out that individual follows healthy practices are
also being undertaken by company. Sustainability is an important aspect for today's economy, as
every task should be carried by an organisation by effectively utilising resources and also making
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them available to future generation. For fulfilling these responsibilities company is also engaged
in creating non poly bags and recycling plastic to create range of polyester clothing and interior
home goods (Meintjes and Grobler, 2014). Company is also engaged in providing proper skill
and ethical training to their employees, so that they can perform their functions honestly and
ethically which influence more consumers to buy their products.
Research also shows that, there are many risks and issues regarding corporate governance
and strategy through which company is guarded with. These problems are related to management
of risk like it can be related to internal and external threat. It includes suppliers, shareholders,
people and board of management. Outside risk factors may include political, economic,
technological, ecological, cultural aspects of country (Marks and Spencer, 2017). There may
occur changes which shows that company is bounded by risk like change in policies related to
import in a particular country.
Performing corporate social responsibilities has assist Marks and Spencer in gaining
competitive advantage, as it has helped them in analysing opportunities and threats. They are
engaged in using various promotional methods like sale promotion, public relation and
advertising on social media for increasing awareness and expanding their share in the market.
Company has also been the first retailer stores to provide a range of Solar PV and thermal power
heating solutions which helps consumer in cutting their power and saving electricity which helps
them in lowering their expenditure (Thurner and Proskuryakova, 2014).
Company is also facing issues related to developing consumer’s interest in products they
are offering. For recovering from this specific issue, industry is laying focus on introducing
innovative and creative products with unique features and techniques which helps them to easily
sale their product. They also focus on cost differentiation strategy which involves keeping goods
price low with high quality and also fixing cost on the basis of substitute product to gain
competitive advantage.
Secondary collection of data has shown that making Corporate Social Responsibilities as
their part of business has helped company in improving their financial performance, cut-short
operating cost, enhancing brand image and value, motivating sales and loyalty of customers and
increase ability to attract and retain consumers. Marks and Spencer is also engaged in providing
safe and secure environment to workers for carrying out their task related to achievement of
objectives (Coffee and Palia, 2015). Corporate Social Responsibilities encountered by company
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not only serves the purpose of saving the environment but also take ecological accountability
into consideration and helps in formulating policies related to keeping the environment clean and
safe.
Organisation is also facing problem due to continuous change in demand, needs, taste and
preferences of consumer (The 3 Biggest Risks Facing Marks & Spencer, 2015). Keen analysis
and understanding should be done by company to know about customer’s wants and company
need to design products according to them. Competitors’ products should also be evaluated by
company so it can act as an opportunity for improving their goods and attracting more people.
Techniques and methods used by company are been updated on timely basis so that this can help
organisation in gaining competitive advantage.
RECOMMENDATIONS AND ACTION PLAN
Corporate governance enacts corporate governance to ensure the proper management and
responsive transport management structure. Company needs to adopt the independence and
strengthen to ensure the surveillance powers of the board. It brings the new positional level and
target market growth (Grant and et.al., 2014). We introduced the system and functional tasks
which are to be implemented in order to bring the new effective changes at workplace. Corporate
governance is the leading challenging growth in terms of managing uncertain changes and
required goals. In order to keep the market position challenging and effective. For that, company
requires making all necessary changes done properly. There are some strategies which company
should follow:
External stakeholders
It is the recommended strategy that company required to incorporate the government
strategies and laws on the business function. Company also needs to take care about external or
internal stakeholders needs (Matiin, Ratnawati and Riyadi, 2018). This helps to control the
uncertain factor goals. Suppliers, customers, vendors and community. Which helps to implement
the better goals and statistical goals. M&S also needs to recognize the importance of developing
better relation with customers and suppliers for high business abilities.
Internal stakeholders
It is another recommended strategy which should be incorporated by the government.
Organisation needs to focus on the internal stakeholders or an individual within an organisation
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in order to accomplish business goals. It helps employees to become more focus on the work
performance. Building strategic relationship with people will also help to engage the long lasting
effective goal.
Accountability
After confirming the goal and advancing performing channel, company needs to focus on
the roles and responsibilities and of the business as a whole (McCahery, Sautner and Starks,
2016). Accountability is about managing obligations of stakeholders and of the business
activities. Company needs to communicate this thing to make sure the better service goals in
order to ensure the challenging goals.
Corporate social responsibility
It is t most necessary and fastest growing area of corporate governance that helps
business to maintain the business sustainable growth. Social activities enable to connect people
with the goals and makes the process and managing goal performance. Social responsibility
business integrates the legal conduct with ethical standards and furthermore recognizes its place
into larger community level (McCahery, Sautner and Starks, 2016). This brings the new
opportunities and goals. Social responsibility is the long lasting performing better task
performance that helps business to grab new opportunities for fostering growth.
On the basis of above, some strategies are suggested for assisting the company to
maintain an effective corporate strategic goals. Government consider retail sector to be central to
the economic and social well-being of the nation. Also, it requires keeping the all function more
implementing and properly cases and an effective management of task. Also company can adopt
the various approaches such as working smarter locally, supporting consumers, understanding
retail and stimulating innovation process to keep all change maintained. This helps to keep the
more required challenges and helps in market expansion as well as assist in increasing scope for
the business (McCahery, Sautner and Starks, 2016).
Action plans can be introduced by Marks and Spencer that shows what path must be
taken to achieve a specific objective. The main purpose of this scheme is to specify resources
and models required to reach the target, formulate a time management strategies according to
which specific work needs to be completed. These type of plans help company in identifying the
problems and provide support in analysing and collecting data. It can help company in building
projects, marketing and communication. Company should make their plan specific, measurable,
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achievable and relevant as well as timely (3 Examples of an Action Plan, 2016). It helps in
clarifying and prioritizing the problems and helps organisation in finding ultimate solutions to
the various issues. .
Plans can be made on organisation facing issues like communication with consumers. For
this, it helps company in adopting the suitable latest technology which includes use of internet
for interacting with customers, suppliers and people who are operating in different part of world.
These plans make communication process easier for company as they can approach numerous
people through it. Various modes of communication like telephone, internet, video calls, Skype
can be used by organisation to interact with people.
Action plans can also be made on the basis of problems related to marketing. Company
faces issues related to promotion of products. They can resolve those problems by involving in
corporate social activities which will automatically increase the brand value of organisation and
will make consumer aware about the products (Young and et.al., 2014). Various promotional
schemes like public relation, advertising through social media, sales promotion methods like
offering discounts can be used by company to increase their sale and market extension of
product.
CONCLUSION
This is to summarise that following report consists effects of corporate governance and
strategies that shows procedures which are designed to structure authorization, balance social
control and provide accountability to shareholders. Further report has included background of
popular company Marks and Spencer which has more than one thousand outlets and has been
situated in United Kingdom. It includes problems and issues like managing risk, changing
consumer behaviour faced by company.
Report also shows main aim and objectives of company which includes expansion of
their market share. Study is also based on factors like explore the impact of corporate governance
on growth of Mark and Spencer and to investigate effects of corporate social responsibility on
customer satisfaction. It shows that company is actively involved in donating money and goods
to charitable organisations. Further report also shows that primary research related to company
through questionnaire method. It focuses on keen aspects like role of corporate activities in
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influencing the image of company and organisation mission and vision related to enterprise
strategic goals.
Data derived through this research shows issues and challenges which company needs to
adhered. Report also consists of recommendations and action plans for overcoming the problems
faced by company. The recommendation is that organisation should lay emphasis on internal and
external stake holders who are the most important asset of company, also it shows that
organisation can make action plans which can focus on aspects like marketing and
communication
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