business and the economic environment M1

M&S’s aims and objectives are to make money for shareholder and to improve their profit margins where and when ever possible. Their approach to reaching the aims and objectives are to design extremely attractive and inactive products for their customers that are of a high quality. As these products are of high of high quality not everyone can afford these products and are targeted at a slightly niche market (upper middle to upper class citizens). M&S also have a commitment called Plan A, in which they are devoted to environmental issues such as refusing to send waste to landfills and using alternatives methods of waste disposable such as recycling within the business where possible and also externally, as well as lowering carbon emissions when possible. These things will help them save money, however the main reasoning for these policies M&S have issued are to increase the their appeal in the eyes of the public, therefore making people think that they are helping the environment if they shop with them. Which they are but only to a certain extent.

These policies are in force as the government have fiscal and monetary policies that effect all businesses and the way they operate, including M&S. An example of a fiscal policy would be direct taxation, this can come in the form of corporation tax which is currently set at 20%. The level of which corporation tax is set at can effect a business hugely, as if they are set low it means that M&S won’t have to pay as much interest on their profit and will have more money to re-invest into the business. This could be into for example, hiring more staff as a result of an increase in demand. This means if M&S carried out hiring more staff alongside other businesses throughout the UK as a result of an increase of stimulation in the economy then the unemployment rate would drop. Giving people more disposable income to spend on higher quality goods in such places at M&S, and further stimulating the economy. On the other hand if