M&S’s Business and Economic Environment

M&Ss aims and objectives argon to sterilize funds for shargonholder and to improve their profit margins where and when always affirmable. Their approach to reaching the aims and objectives ar to design super allureive and inactive products for their clients that atomic number 18 of a gamey timbre. As these products ar of high of high quality not everyone can afford these products and are targeted at a slightly niche market (upper in-between to upper class citizens).M&S similarly consent a commitment c everyed Plan A, in which they are devoted to environmental issues such(prenominal) as refusing to g small waste to landfills and using alternatives methods of waste disposable such as recycling within the wrinkle where possible and also extern in ally, as well as canbreaking carbon emissions when possible. These things testament help them save capital, so far the main solid grounding for these policies M&S fork up issued are to increase the their appeal in the ey eball of the public, because making plurality think that they are helping the environment if they shop with them. Which they are provided only to a certain extent.These policies are in force as the establishment confound pecuniary and monetary policies that effect all stemmaes and the way they ope effect, including M&S. An example of a fiscal policy would be direct taxation, this can come in the normal of corporation tax which is currently veritable(a) up at 20%. The level of which corporation tax is facility at can effect a business hugely, as if they are set humbled it substance that M&S wont get down to lucre as more than than recreate on their profit and pull up stakes arrive at much specie to re-invest into the business. This could be into for example, hiring more staff as a subvert of an increase in demand. This means if M&S carried out hiring more staff on base other businesses throughout the UK as a result of an increase of stimulation in the thrift iness then(prenominal) the unemployment come in would drop.Giving people more disposable income to elapse on higher quality goods in such places at M&S, and further stimulating the economy. On the other hand if the corporation tax was set at a high level the businesses, including M&S, would bugger off to pay out more of their salary to the political relation in order for them to keep the economy running. This would then lead to M&S having slight money to re-invest. Meaning it pull up stakes be harder to open maybe as much as theyd planned to. However if businesses are paying more in corporation tax then the government activity go away most likely be needing it to wake up the economy to encourage people to start spending.And go forth in turn increase the total of business and sales that M&S ordain receive. So if the corporation tax is high it ordain be better for all businesses in the long run. The government also have a capital leeway which means that businesses ca n buy overpriced machinery and are eligible to claim the tax keep going from those machines. This is so that because the tax on these machines will be at a relatively high price and will encourage businesses to buy them and spend money. This would apply to M&S as they have the self-service machines that customer can scan and bag their own shop if time is of the essence.The amount of tax on all of the machines that M&S have bought throughout all of their stores will add up to a life-size sum. So if they can get that money back it means that they will have more money to reinvest back into the business, creating more opportunities to make money and therefore generating more profit in order to reach their never-ending goal which is to make as much money as they can to keep the shareholder happy. This will also heavily apply to cavies, where M&S get all their effectuate meals from. As they are a factory with countless machines they will be able to get a bursary from the government for the tax which they paid on the machines. This means that they will be able to sell their ready meals for a cheaper price which means M&S will save money (and will be smasher their aims and objectives) alongside with their customers.Then as they are cheaper it will attract more sales resulting in more ready meals bought from cavies giving a get win win situation to cavies and both M&S and their customers. The government also have monetary policies that will touch all businesses, and these include such things as liaison roams. This is because the amuse rate doesnt just view businesses but every citizen of the UK. And this effects businesses in a big way because it has a direct contact lens to how much money people and businesses receive back from the bank in return of banking with them. Currently the interest rate is at an all-time low of 0.5%, and has been stuck at this rate since 2009 because of the recession.The interest rate has been set this low so that it encourages people to take out loans and mortgages, as it means that people wont have to pay as much money back on their loan. This then has a ripple effect and will increase the amount of first time buyers to reefer the property ladder alongside other buyers that will sell and buy a more expensive house. This will have a huge see on the housing industry and therefore also M&S as they have a largehome wares section that people will purchase new goods from to furnish their new homes with.However, on the other hand a low interest rate is very bad for people who are wanting to save and earn interest on their savings. Because if the interest is at 0.5 and soul has 10,000 in a savings account which will be no more than 1.2% at best then in a year they would only make great hundred profit. This means that people wont have as much disposable income compared to if the interest rate was at its average 5 6% and people would be saving about five multiplication as much. And if the interest rates are l ow then large businesses like M&S wont invest their money into the banks that are in England, they will put them in onshore accounts in such places like China, which has an interest rate of 6%, or India with a rate of 7.25%.These countries have a high interest rate as they are up and coming countries ((NEDCs, (newly economically true countries)) and have a high growth rate and show a promising return upon investment. other monetary policy that would affect businesses would be the amount of capital allowance they allowed each citizen to have. This is currently set at 10,000, and if you earn under that amount you be taxed so that you can meet the national stripped-down standard of living. This then links back to more disposable income people have, as the more they have the more they are likely to spend, and the more bump that money will end up in M&S.It could go as far as someone who saved 200 in taxes and buying a new game console of someone second hand and they could then repay a debt to someone, then they could spend that same 200 on a weekly shop at M&S. So no matter who saves money for what reason the direction of money is too unpredictable to even guess so saved up money will just as easily end up at M&S as anywhere else.