Business Environment of Primark: Objectives, Responsibilities, and Market Forces

This report explores the business environment of Primark, a subsidiary of ABF, focusing on its objectives, responsibilities, and strategies. It discusses the various types of competitive markets and the impact of fiscal and monetary policies. The report also examines how Primark meets the objectives of stakeholders and the market forces that affect its operations. The document type is a report, and the assignment type is a study on business environment. The subject is business, and the course code and name are not mentioned. The college/university is not mentioned.

Business
Environment
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Primark..................................................................................................................................4
1.2 Primark meets the objectives of stake holders.......................................................................4
1.3 Responsibilities and strategies of Primark.............................................................................5
TASK 2............................................................................................................................................6
2.1 Economic systems of various countries.................................................................................6
2.2 Impacts of fiscal and monitory policies.................................................................................7
2.3 Competition policies..............................................................................................................8
TASK 3............................................................................................................................................9
3.1 Various types of competitive market.....................................................................................9
3.2 Market forces that affect demand and supply of the market...............................................10
3.3 Business and cultural environment affect the Primark........................................................10
TASK 4..........................................................................................................................................11
Significance of international trade.............................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
Books and journals....................................................................................................................14
2

INTRODUCTION
The entire report is in the reference of the organisation Primark which is a subsidiary company of
the ABF (Associated British Food) group. The company’s entire focus is always upon the
innovations and to bring new ideas, it has always been distinctive for offering unbeatable value
which never loses its fashion drive edge. Primark not only deals with manufacturing goods but
expertise in understanding the customer values. The report will present an insight about the
various types of business environment which company suffers through. Also it will explain about
how various market forces affects the working of the business.
3

TASK 1
1.1 Primark
Primark offers a diverse range of products which includes kids wear, newborn, women, men,
accessories, home wear and many more. The company sells the clothes at a very low cost as
compare to the other companies. Primark believes in fast and rapid changes and innovations.
They never lack behind in the adopting the prevailing trends.
The purposes of Primark are:
 To improve the continuity and their range of products in the company.
 To maintain respect for each other and also all those who are involved in the working of
the organization.
 Their major focus is on the environment health and safety.
 To strive continuously for effectiveness.
 Adopting various techniques for employment and trading.
 To offer the best value for money.
 Charity- Primark has raised 1.4 million through sales of its Christmas bumper range for
making the wishes of the poor children a magic and to come true those who were fighting
from the most toughest situations of life.
 Primark believe more in donating clothes instead of donating money to the poor and
needy people.
 Coordination – If we talk about the co ordination in the Primark it runs various
departments in various cities and manages them so well by keeping complete controls
over both the organisation and on the potential customers of the organisation. Primark is
well structured by considering the needs and the desires of their customers.
1.2 Primark meets the objectives of stake holders
As Primark is one of the largest retailer in the Europe with around 200 stores and more where
Primark majorly focuses upon fulfilling the objectives of the stake holders who are involved with
the organisation. Some of them are mentioned below.
4

 The significant proportion amount of profit is for the ABF’s revenue. As it was first
initiated by the ABF and Primark is one of the stores of ABF.
 Secondly the Primark focuses upon the potential customers who are willing to invest into
the organisation, so the Primark is very concern about their needs and desires.
 Also they look upon the latest fashion and trends and keep bringing innovations in the
same just to add value to the money of the stake holders who are interested to invest in
the organisation.
 Primark also keep complete concern for the stake holders like creditors, customers,
directors, employees, government, suppliers, union and community who invest their
valuable money into the organisation.
 Primark organisations provide different considerations to those who are a part of their
organisation.
 Also they keep influencing and motivating them by letting them know that they have not
made the wrong decision by adding their valuable money into the Primark.
 Primark considers trade unions as they are the bodies who represent the workers of the
organisation.
 Their another objective is to seek attention upon the non government organisations who
provides help to the workers’ in case of any issue occurs into the Primark.
1.3 Responsibilities and strategies of Primark
As being such a vast company it becomes very obvious to maintain the dignity and
goodwill to sustain longer in the market. And so there are so many responsibilities which
Primark needs to fulfil to keep both their customers and employers happy so that the
employees work more effectively and efficiently for their organisation. Responsibilities
of Primark are mentioned below.
 They make their employees, workers, suppliers, local wanders, communities a part of
their organisation and work along with them and involving them into the work and
decisions by every way they can.
 They treat their suppliers fairly so that there may no such conflicts occur into the
organisation.
5

 They provide equal and fair opportunities to their employees which are entirely based on
their merit list.
 Primark do not carry any type of biasness of neither for their employees nor for their
employers and focus upon equal distribution for one and all into the organisation.
 Also the local communities are respected and entirely supported by the Primark and also
help them to resolve any issues they face.
 Primark not only focuses upon the customers and the employees but also take their
working environment seriously so that everyone who are involve with the organisation
feel satisfied.
 Primark also does ethical trading initiative with their own determination to succeed
without affecting the expenses of any other.
 Primark also support many such charitable organisations by providing them clothes
instead of donating cash to them.
TASK 2
2.1 Economic systems of various countries
1. Economic system of Cuba
 Cuba receives almost 100,000 barrels of oil a day all the way from Venezuela.
 The aggregated gross national income per capita of Cuba is officially $5,539, but they
take home salary is around $20 only.
 If we talk about the modernisation in the economic system then only less than % percent
of people in Cuba has access over the internet as the Netflix are very weak in the country.
 The government of Cuba authorizes very less self employment activities for the Cubans
due to which the economic system is lacking behind.
2. Economic system of United Kingdom
 The type of economy which is adopted by the United Kingdom is the Capitalism
which means a countries’ trade are privately owned and controlled.
 The inflation percentage of United Kingdom is near about 2.5%, unemployment is
8%, and interest is 0.5%.
 The exchanges rates of UK are 1 dollar to .6177 pounds.
 Their top exports are car and medical equipment.
6

 They usually import in verities of food.
3. Economic system of china
 China has socialism and capitalism structure of economy and a blend of
two you can say. But the leaders look for adopting capitalism type of
economy so they even practices capitalism to make it permanent.
 Its gross domestic product has reached far above by 10% far above from
those developed nations.
 In china the maximum control is in the hands of the government and so
private businesses are monitored so closely and are controlled wisely.
2.2 Impacts of fiscal and monitory policies
1. on farming
 The government has the duty to provide employment to those who are unemployed and
are willing to work, also helping others to promote maximum production and purchasing
power this will result in sustainable growth of the economy.
 The Federal Reserve must regulate the money supply to maintain the stability of the
overall price level as they are closely related with each other.
 As maximum rate of economic growth for our national economy includes per capita
increase in the per capita consumption of the country.
 The change in dollar exchange affects upon the farming or the agricultural sector.
2. on housing
 Due to the fiscal policies there are houses which are newly constructed single family
houses not yet sold or occupied till yet.
 The rents of the houses changes with the change in the fiscal policy and monitory policy.
 All the houses previously occupied units are being offered for resale due to fiscal policy
and its changes.
 Also the previously occupied houses go out and offered for the sale.
 Even the strikes are done by the builders due to the drastic change in the prices.
7

So, these both the farming and hosing sectors are adversely affected by any change in the fiscal
and monitory policy of the country and not only these but there are many such sectors which are
also affected by the same. So decisions are need to be taken by the government by considering
each and every sector.
2.3 Competition policies
The despotic aim of the competition policy is to promote competition in the market, make the
market and its working better by implementing the competition policies. Also it focuses upon
improving and contributing in the efficiency of the individual market. Moreover, it enhances the
competitativeness into the market so that each and every individual business works more
effectively in the prevailing market. The competition policy aims to ensure major things which
are mentioned below.
 It brings innovations in the field of technological change which promotes dynamic
and continuous changes in the present market scenario.
 It brings effectives competition between the suppliers into the market.
 It preserves and promotes the individual choices of the customers by understanding
their needs and desires as well as their interests.
 It provides increased choice and lower price levels.
Four pillars of competition policy
1. Antitrust and cartels – This avoids the unusual and individual price fixation and
restrict upon the competition by fixing the common prices in the market.
2. Market liberalization- It introduces competition in the previously monopolistic
sectors such as energy supply, retail ban king, mobile telecommunications.
3. State and control – This ensures that the competition may not get affected by the
airline subsidies and tries to avoid that to an extent.
4. Merger control- this is concern regarding checking the mergers between the
organisation which are taking place in the market.
Affects of competition policy
8

 Merger between two unequal and two large groups may result in dominating the
market which may affect the other competitors.
 Price fixing or other abuses by the firm may also affect the market and other
competitors.
TASK 3
3.1 Various types of competitive market
 Perfect competition – A perfectly competition market is the most hypothetical market
where competition is at the greatest level. Where there is no control over the prices and
there is no such restriction like fixing of the prices for the particular products. There are
large number of buyers and sellers in the market and there is no restriction over the entry
in the market any one can join anytime they want and the entry is totally free. A person
can easily enter without any difficulties for the same. There are possibilities of abnormal
profits. Also there is no authority for taking the decisions in the perfect competition
market. The cost and the benefits do not affect the third parties. Firm can sell at any price
they want to sell. There are zero transaction costs as sellers do not charge any money
while making exchange of goods in a perfectly competitive market.
 Monopoly – It’s a kind of imperfect competition where many producers sell their product
but they are differentiated from each other. For e.g. different brands and different quality.
Here the single firm dominates the market. The firm increase its profit that is equal to its
marginal costs. And business has the total control over the market. No entry and exit is
cost in the long run. There is full independency in making the decisions.
 Oligopoly competition – It is where the market is dominated by only few large firms,
under theses the firms do not feel fighting over the prices but they believe competing in
various other ways such as advertising, product differentiation and barriers.
 Duopoly competition –It is the other form of oligopoly where the different large firms
dominate the market. And can also have the impact over the market.
9

3.2 Market forces that affect demand and supply of the market
There are various market forces which affect the demand and the supply of the market such as
perfect competition, monopoly, oligopoly and duopoly. For an instance if we talk about the
perfect market there is a lot of variation in the demand and the supply of the market as there is a
lot of competition in the market and different firms fixes different prices for their product
according to their decision and choices as regular competitions are being taken place and prices
increases and decreases and so as the demands of the customers are affected by the changes in
the prices. Like if the price of particular product decreases then the demand of the customers
increases.
Now if we talk about the monopoly there is no such variation in the prices as there is no such
competition in the market and there is only one seller so if the customer needs that particular
product he definitely goes and buy the product where is no such fixation upon the demands and
supply and is not affected by the change in the prices.
If we talk about the oligopoly market here people already made up their mind as there is a
differentiation in the brands and the quality so they recite to the brand they trust the most and
who so ever provides the best quality product the customer raises their demand for the same and
accordingly the supply is done.
3.3 Business and cultural environment affect the Primark
If we talk about the business environment then there are many such elements which will affect
the Primark the business environment is totally concerned with the environment of the business
organisation that is what type of leadership style is adopted by the Primark, what type of
techniques they have adopted for solving the problems that happens in the Primark. Also how
good practices they have adopted into their organisation and how they are dealing with it. It also
depends upon either the business is taking place within the domestic boundary or is established
globally because most of the problems comes when we carry the business outside the domestic
boundary then the Primark will need to overcome various barriers such as licensing , government
policies of other countries, various other rules and regulations and laws.
10

Cultural factors- Cultural environment is that where the organisation is effected by the different
values, ethics and customs of the company. Cultural environment may affect the Primark in
different ways for an instance the employees working in the organisation might come from
different states or countries and differ in their language cultural which may create a barrier in
communications between the employees and the employers in the Primark. Also if an employee
has come from different state may have different values which might differ from those with the
Primark values so these may affect the Primark.
TASK 4
Significance of international trade
The international trade is beneficial in many ways and affects the business in both good and bad
ways it also affects the working of the organization. The below points will provide the factual
and practical examples to make it more clear about the topic.
 Trading with international markets helps the organisation to build strong in the
technological field by bringing new technologies and tools into the organisation.
 It helps in adopting various new techniques and methods which were never seen before.
 Dealing with the international market lets your organisation grow at the international
level.
 It builds the reputation of your company and also helps in raising the goodwill of your
companies.
 This also let you expertise in overcoming the barriers which comes into the way while
trading with the international market.
 It also helps in bringing innovations and creativity into the organisation as dealing
outside the domestic boundaries let you learn more with different values and different
culture of people.
 Let your organisation to understand different languages, customs, and ethics of various
countries.
 It helps you build strong at the domestic level a once you cross the international
boundary.
11

CONCLUSION
The entire report is based upon the business environment and what type of culture is adopted by
the Primark. The report ahs also discussed about various types of completion in the market which
perfect competition, monopoly, oligopoly, and duopoly. It has also presented the competition
policy and how it affects the Primark and any other organizations. It will provide an insight
about the various economic systems which includes countries like china, Cuba, and United
Kingdom. It will help you find out the difference between various economic systems and how
they are adopted by different countries.
12

REFERENCES
Books and journals
Altintas, H.M., and et. Al., 2011. Internationalization, market forces and domestic sectoral
institutionalization. European Business Review. 23 (2). pp.215 – 235.
Antonacopoulou,P.L., and Méric,J., 2005 .A critique of stake
‐holder theory: management
science or a sophisticated ideology of control?. Corporate Governance: The international
journal of business in society. 5 (2). pp.22 – 33.
Artto , K., and et. Al., 2017 .Managing business networks for value creation in facilities and
their external environments: A study on co-location. Facilities. 35 (1/2). pp.99 – 115.
Bergquist,C.S., 2006. The perfect market – and strategies to survive it. Journal of Business
Strategy. 27 (2). pp.11 – 2.
Dai,W., Chen,M., and Ye,N., 2011. Research on the innovation system of China's software
industry based on CAS theory.Kybernetes.40 (5/6). pp.807 – 813.
Hartwell, A.C., and Michael ,B., 2015 A helping hand: examining the effect of foreign banks
on the business environment. International Journal of Emerging Markets. 10(4).pp.875 – 895.
Iyare,S.O., and Moseley,L.L., 2012. Caribbean RE: policies, competition and regulations.
Management of Environmental Quality: An International Journal. 23 (3). pp.275 – 283.
Mollah, S., and Mobarek,A., 2009. Market volatility across countries – evidence from
international markets. Studies in Economics and Finance. 26 (4). pp.257 – 274.
Onyido ,C.B., Boyd, D., and Thurairajah ,N., 2016 .Developing SMEs as environmental
businesses. Construction Innovation. 16 (1). pp.30 – 45.
13

Reginato, L., and Guerreiro,R., 2013. Relationships between environment, culture, and
management control systems. International Journal of Organizational Analysis. 21 (2) .
pp.219 – 240.
Shroff,R., and Ambast,A., 2012 .Ss. 5 and 6 of the Competition Act, 2002: Demystifying the
competition implications of mergers and acquisitions in India . Journal of Financial Crime. 20
(1). pp.88 – 115.
Thampapillai,J.D., 2010. Perfect competition and sustainability: a brief note. International
Journal of Social Economics. 37 (5). pp.384 – 39.
Worthington,I., and Britton,C.,2014. The Business Environment. Pearson Education Limited.
14

15