Business Homewoek

5. Discuss the view that the policies adopted by WH Smith plc since 2003 have been of benefit to all its stakeholders.

WH Smith has a variety of stakeholders including staff, shareholders, suppliers, customers, local and global communities, owners of travel outlets, hospitals and high streets properties.

Since the appointment of Kate Swann as Group Chief Executive in 2003 the company has redefined itself with increased markets and profits to the benefit of key stakeholders.

The company’s mission is ‘to rebuild its position as Britain’s most popular stationer, bookseller and newsagent’ To this end it sold off all its diversified business to concentrate on its core business. The company’s newspaper and magazine distribution division was sold off as a separate business and the company now concentrates on retailing newspapers, magazines and books. It has opened a large number of retail outlets at airports and stations and these have proved very popular with increased sales and turnover. This has provided new employment opportunities for staff and the increased sales and turnover and improved profit to the benefit of shareholders. This has also allowed the company to renegotiate its contracts with suppliers and increase its profit margins whilst providing suppliers with a ready market for their products.

Because of its large buying power the company has also been able to undertake quality audits with its overseas suppliers in terms of labour standards and influenced improvements in countries such as China. Not only has this been of benefit to the employees of those overseas suppliers but has also improved WH Smiths creditability and standing with customers concerned with the ethics of production. The company also sells a large amount of paper and wood products that are produced from forests all over the world and it is trying to ensure that all these are sourced from legal, well managed and credibly certified forests. Not only does this show the company to...