Business and Business Environment Analysis: NHS and Primark

This report provides a comprehensive analysis of the business environment, focusing on two key organizations: the National Health Service (NHS) and Primark. The report begins with an introduction to the business environment and its importance, followed by an analysis of NHS and Primark across various factors, including legal status, products and services offered, size, scope of operations, and their respective aims and objectives. The report delves into the relationship between different organizational functions, such as Human Resources, Finance, and Marketing, and their alignment with overall business objectives. Furthermore, it includes a critical analysis of different business structures and the impact of macro-environmental factors. The report also covers internal and external analysis to identify strengths, weaknesses, opportunities, and threats (SWOT). The report concludes with a summary of findings and a list of references used throughout the analysis.

Business
and
business
environment

TABLE OF CONTENTS
INTRODUCTION
............................................................................................................................................................
1
P1 Analysing NHS and Primark by various factors.................................................................1
P2 Size and Scope of Operations..............................................................................................4
P3 Relationship between functions with various objectives and structures of organisation...7
D1 Critical Analysis of complexities of different business structures.....................................8
P4:Some positive and negative impacts of macro environment with suitable examples. .......1
P5:Conducting external and internal analysis to identify strength and weaknesses................4
P6:The strengths and weaknesses related to external factor....................................................7
Conclusion
............................................................................................................................................................
8
REFERENCES
............................................................................................................................................................
10

INTRODUCTION
Business environment can be considered as a combination of all the internal and external
factors which effects the various functions of an organisation including employees, management
etc. The factors can be social, economical, technological, legal or any other that is somehow
affecting the organisation. The importance of the business environment plays a huge role in
providing particular and specific direction for growth and in continuous learning as well.
Economic objectives says business is actually an economic activity and it only focuses on
making profits, more and more customers and innovations. Social objectives that it doesn't
matter if one has to come across some failure (Sørensen, 2012). As Henry Ford had said
“Failure is the opportunity to begin again more intelligently” . The report is about about various
types, size and scope of organisations.
P1 Analysing NHS and Primark by various factors
National Health Service (NHS)
National Health Service (NHS) acts an organisation that is being publicly funded. It
comes under as an oldest and the largest organisation. Describing some of the background
features of the organisation as under :
Legal Status
The Health and Social Care Act 2012 established many procedures for redesigning the
procedures of information standards. It standardised a new legal status with the secretary of state
and health for NHS. It brought a new governance framework. The introduced features also
included more secure, digital information services to act upon.
Established Year
The public health organisation was originated in October 2011 as an outstanding health
authority.
Product/Services Offered
As NHS deals with health services, there are some very essential services that it has for
its customers. The organisation is dealing with many services such as eye care, sexual health,

mental health services and many more. Some other very effective services for any urgency or in
case of any confusion are also there. Describing below some : Call NHS 111 : If a person requires help immediately because of any reason and it is not
necessary that it must be a life threatening one only, they can contact on NHS 111 and
ask for what service they may need and it will be available to them. Call 999 : It covers any situation that may be risky or dangerous to someone's health.
Someone seriously ill or injured also is entertained in this service. Visiting a Walk-in centre : If someone has minor injuries, they can visit these centres for
immediate treatment. Asking local Pharmacist : Whether someone is suffering from any type of illness, urgent
or normal, they can ask local pharmacist and can get treated by them for the small issues
as well (Sørensen, 2012).
 Having an appointment with GP : If there is no urgency but few symptoms of not feeling
well, one can take an appointment before also.
Purpose and Nature of the business
NHS is dealing with a set of functions which constitutes the main purpose of the
organisation. Discussing some functions below : Improving patient experience – It is the main focus of the NHS to make the experience of
the patients better. Often in many organisations, there are cleanliness problems, the way
they have been treated and many more. So, NHS gives priority to these factors the most.
The staff is polite with the patients. As well as there is proper cleanliness in the
organisation. It makes the patients experience better from the other ones.
 Technology, systems and data - NHS is using digital technology in every unit of their. It
is being used there they cannot cooperate with a person's life. They don't want any errors
to come in the test reports as well as in any of their treatment (Klapper, Lewin and
Delgado, 2011). Still they are also searching for adding more technological features to
their systems.

Aim and Objectives
NHS focuses on giving more efficient and better features to their customers. Its Objectives are :
 To give better services to the customers.
 To focus more on serving people, rather than making money. To develop more technological features.
Primark
Primark acts as a subsidiary of AB Foods. With that it deals with clothing, cosmetics and
housewares as well. It also serves many areas of UK. Describing some of the background
features below :
Legal Status
The legal status of Primark got affected when a supplier was being forced by ETI to remove its
branding from Primark stores and websites. According to the covered news, illegal migrant
labour came as the reason. It also included that the employees were paying less than the
minimum legal wage of UK.
Established Year
A very first large store was established in Belfast City Centre in year 1971. International
headquarters were opened in 2015 in Dublin (Sørensen, 2012).
Product/Services Offered
Primark deals with clothing, cosmetics and housewares. The official website provides all
type of essentials for men, women, kids etc. with the home products also. Beauty products have
also been presented in the website. It also gives the customers the freedom to return or exchange
any product if one wants to. Among many famous retailers like Zara and H&M, Primark
involves in the contemporary fast fashion trend.
Purpose and Nature of the business
The main purpose of the organisation is to serve the customers in a way that they don't
want to refer any other organisation for their basic needs. After that, they focus on making their

business a profitable and sustainable one. It always seeks for various opportunities that can led
their business to a faster growth rate.
Aim and Objectives
The aims and objectives of Primark are discussed as under. They want :
 To continuous the policy of selling the quality products at cheap rates (Klapper, Lewin
and Delgado, 2011).
 To ensure the customers also that if they are selling good products at cheaper rates, that
does not mean they are using a cheap quality. They just want the satisfaction of
customers.
P2 Size and Scope of Operations
NHS Size -
The size of an organisation includes all the employees, annual turnover, market shares
etc. Each of the feature defined below :
Number of employees
Every organisation is like a family. As a family has its members, an organisation also has
its. NHS is a family of 1,400,000 members. It stands as the fifth biggest employer in the world.
Gross Annual Turnover
It is quite difficult to have the exact turnover rate. There are some features which are
indirectly or directly related to the employee turnover. It may be excessive workload, less
motivation, appropriate work pressures etc. Turnover rates have been slightly increasing from the
time. In November 2012, the minimum rate was of 0.6 % and the maximum was 1.7 %. From
that time, rates are appearing to be slightly rising.
Market share
They also play an important role in the overall statistics of the company. NHS have
made a pricing strategy. Whenever, the situation changes, it changes its strategies too like they
can sell it cheap or at more higher rates.

Share holders
These include the suppliers, customers, governments of where the stores are located,
trade unions etc. Shareholders are those people who have their share in any form in the particular
company. They also take part in all the organisational activities equally as the other employees
do. Their focus is always on increasing their shares by decreasing the other one's.
NHS Scope -
National and International Scope
It was first establish in Belfast City Centre, then in 2015, made their international
headquarters in Dublin.
Extent of their profit
As the organisation has increased their services and products, developed many new
technological features, obviously more people are attracted to it. It resulted in improving the
overall benefit of the organisation (Klapper, Lewin and Delgado, 2011).
Varieties of Products/Services
It deals with various services and products which helps the patient in many ways. They
have even services for someone in urgency also. If someone is not feeling good and wants to take
an appointment later, they provide these facilities also. If someone is not sure of which service to
attain, they help the patients in getting that information too.
PRIMARK
Size
Number of employees
As compared before it with H&M, it consists of 68,000 members whereas H&M is a
family of 148,000 members. Primark is a quite small family but they have been successful in
winning people's heart by selling highest quality products at cheaper rates.
Gross Annual Turnover
The annual turnover has reduced as the organisation has increased amount of revenues
from 2007 till now. In 2007, the revenue in GBP was 1,602 and it started increasing every year.

The last data found of 2016, in which it was increased till 5,949. It is a big achievement for the
company (Chow And et.al, 2011).
Market share
According to the statistics, the market shares of the company has risen but there are
some factors that have affected their sales in Germany and Netherlands. On Jan 7, the sales of
the company were 11 percent higher when compared to the previous data. It is putting a huge
amount of pressure on the competitors like Sweden's Hennes and Mauritz.
Stake Holders
These are those people who have directly or indirectly their stake in the company.
Shareholders of Primark includes their suppliers, customers, governments where the stores are
located, trade unions, employees and communities. Every holder has their own particular rights
in the company.
Scope
National and International Scope
The retailer has increased growth at a very fast rate from several years (Carroll and
Shabana, 2010). When it was established, very few people were aware of it but now most of the
population in UK shops from Primark as it provides best quality products at very cheap rates.
Extent of their profit
They have reached to higher levels of profits from few years. The demand of the
products increased instantly and till now they have been successful in maintaining the growth.
They reached this level because of their sincerity with the customers. They regularly takes
feedback from their customers and always try to solve them as soon as possible.
Varieties of Products/Services
Primark deals with a variety of clothing for men, women, kids etc. It also includes the
home furnishing stuff. Along with clothing, it also deals with cosmetics and housewares. The
company wants satisfaction of their customers. For that they sell good quality products at very
reasonable rates.
P3 Relationship between functions with various objectives and structures of organisation
Covering the relationship between functions as following with the organisational objectives :
Human Resource

NHS
HR plays the most important role in the achieving the purposes of the organisation. They
manage staffing different purposes to different people. They according to their capability, allot
some work to them. It is so because the HR wants the employees to stay motivated and focused
towards the work. The HR of NHS makes sure to provide motivation and some sort of incentives
or increments to them. They are aware of the fact that these factors help the employees a lot in
staying more focused towards the target.
Primark
As the role of HR is quite same in any organisation. In Primark, the HR also focuses on
increasing the efficiency of the employees so that they can produce a much amount of outputs
(Klapper, Lewin and Delgado, 2011). They guide the employees to take proper care of the
customers, regularly take feedbacks etc. If any customer stays unsatisfied with the product,
Primark allows them to replace it.
Finance
NHS
The objectives itself decides the finance the health centre wants. It all depends on the
objectives itself. The more bigger the objective is, more financial help would be needed by the
hospital. It depends that how much the health service centre has already in their accounts. For
involving more practices and services, there can be an increase in the financial status of the
hospital as well.
Primark
As it deals with cosmetics, clothing and the housewares, they often have to face financial
issues. It is essential to have the amount that has been profited to the retailer. Whatever the new
objectives are, it sets the financial budget. It is because if the new project which is being
undertaking in the company includes the most essential products, it is obvious to be costly. So,
the financial status can set only by the objectives itself (Sørensen, 2012).
Marketing/ Sales
NHS
It also plays a very important role. When the service centre is producing a much amount
of products and services and no consumers wants to utilise it, the products and services will

remain of no use. So it is very important to produce at such reasonable rates that the people can
afford it and utilise it properly. It further helps the hospital also in an increasing number of sales
thus serving the people too.
Primark
The sales and marketing, all depends on customers, whether they are liking it or not. The
more efficient the product is, the more people will like it. The objectives of it can be improved if
sometime there comes a situation where people seem less interested in their products. That time,
Primark have to go for some modifications in their products so that people can stay satisfied with
the organisation (Czinkota, Ronkainen and Moffett, 2011).
Production
NHS
If the organisation is producing well standard products, the sales will increase
automatically. One of the main objective of the organisation is improving efficiency. So, if they
are focusing on that, their productivity will also increase. Hence, increasing the value of the
organisation more.
Primark
If Primark would be providing efficient products that makes the customers satisfied, their
production will increase, thus increasing their sales as well. Every company and the customers
want their products to be efficient. If they are providing the same, the company will have an
overall increase in the production.
D1 Critical Analysis of complexities of different business structures
NHS
The resources and the services can be used very efficiently. Through these processes, the
information flow also increases in the organisation. As employees have sufficient contacts, they
can share the information with one another which can help in speeding up the decision making
process (Teece, 2010). However, the overall structure is quite expensive to maintain. Also, it can
result in internal complexity of the system by making things more complicated (Craig and
Campbell, 2012).
PRIMARK :

Primark has more opportunities for the management. It provides various opportunities to
the employees as well as to the company (Commander and Svejnar, 2011). There are many
levels of management which an employee can cover by working hard. However, it can be
critically analysed that it becomes complicated sometimes as the decision making process goes
complex sometimes (Carroll and Buchholtz, 2014). They have higher costs and have reduced
empowerment also.

P4:Some positive and negative impacts of macro environment with suitable examples.
Various strategies are used by organization to be effective in the market place. The
successful organization follow essential analysis for developing approaches towards strategies.
Pestle analysis is done on macro environment to understand various business framework. This
analysis promotes the development of strategic plans and will present all the threats that can
cause harm to the organization and also take specific action to avoid the impact.
Political-This factor follow and admire all the different initiatives taken by the government that
might change the presentation of entire work. It should adopt all the policies and various act that
are imposed by the government. The laws and policies of the government can change the
priorities of the companies. Primark which is among the top most retailers of clothing in UK.
The Primark should follow all the policies and rules that are imposed by the government of UK.
It is mandatory for the Primark and its employees to follow all the employment acts like sex
act,equity law,disability act etc(Sørensen,2012.).
The Primark had given employment to various employees and these employees should
work according to the laws of the government any laws of the government if not followed
properly may be a serious threat to Primark. However there are some negative impacts of
political factors if there is any change in the policies or laws by the government then Primark
should also implement that. This can bring downfall to the success of Primark to change the
policies according to the government. In addition to that the government laws and regulations
regulated by government are to be admired in NHS to provide better health services to the
patients. These policies will benefit the patients in their medical care. However,if the proper
guidance will not be provided from the government then proper facilities cannot be given to
patients.