Customers – the decline in sales is a reflection of many customers deciding to do at least some of their shopping elsewhere – though it is worth stressing that Marks & Spencer is still the largest British non-food retailer.
SAA 4 – A Stakeholder Map for Marks & Spencer
New Management Team
Perhaps the main change at Marks & Spencer is the departure of Richard Greenbury and much of the old senior management team. The old top-down autocratic style has disappeared. The new team led by Luc Vandevelde is in a much weaker position, largely due to the increasing involvement of the major shareholders, whose interest and power have both increased as a result of the problems. Whilst Marks & Spencer was performing well then the major shareholders were largely satisfied, so having little day-to-day interest in the company, and their power was latent.
Small shareholders have little power except that of selling their shares, though they can make life difficult for the Board at the Annual Meeting and letters to the press! Employees have high interest but little direct power – though they need to be considered when introducing a new strategy. What little power suppliers could exert has been reduced, as a result of the changing supply chain, and some of the newer suppliers are likely to have less interest as they supply other retailers along with M & S.
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