Primark and its stakeholders

Business Environment
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1 ..............................................................................................................................................3
1.1 Identifying the types of organization along with their purpose.............................................3
1.2 Describing the extent to which Primark meets objectives of its different stakeholders.......4
1.3 Explaining the responsibilities of Primark.............................................................................5
TASK 2 ...........................................................................................................................................6
2.1 Explaining how economic systems attempt to allocate resources effectively.......................6
2.2 Assessing the impact of fiscal and monetary policy on Primark and their activities............7
2.3 Evaluating the impact of competition policy and other regulatory mechanism on the
activities of Primark ....................................................................................................................8
TASK 3 ...........................................................................................................................................9
3.1 Explaining the market structure that helps in to determining the pricing and output
decisions of business....................................................................................................................9
3.2 Illustrating the way through which market forces shape organizational responses using a
range of examples........................................................................................................................9
3.3 Judgement on how business and cultural environment shapes the behaviour of Primark...11
TASK 4 .........................................................................................................................................11
4.1 Significance of international trade to UK business organization.........................................11
4.2 Analysing the impact of global factors on UK business firms............................................12
4.3 Evaluating the impact of policies of the European Union on UK business organization....13
CONCLUSION..............................................................................................................................14
References......................................................................................................................................15
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INTRODUCTION
To grow a business in a right direction, managers of the company needs to be recognize
predicted, and deal with the changes in both internal and internal environment. This helps in to
understanding about what is happening inside and outside of an organization so that right
organizational strategy to be prepared to face the environmental challenges. Business
environment is consists of different set of conditions like social, economical, political and
technological etc. All these environmental factors affects the business operations either in a
positive or negative way. Environmental factors gives strength to an organization in order to
maximize their efficient utilization of resources. All these factors makes organization more
flexible and dynamic in nature. It helps the company to grow and long survival in the market
under the diverse situation. It made the organization in order to examine environmental factors
and constructs the strategies according to environmental changes towards the attainment of
business objectives. The following research is based on business environment and to understand
its significance; Primark case study is taken in to consideration. It is a kind of British food group
subsidiary company. Company have 238 branches in UK, Ireland and Europe. It provides
distinctive products and services compare to their competitors. Primark sourced its product and
services from Asia, Europe and other key sourcing company. Under this study it assess the
impact of fiscal and monetary policy on Primark.
TASK 1
1.1 Identifying the types of organization along with their purpose
Primark is the leading firm that is working in the retail sector tremendously. Company
believes in ethical trading and provides quality cloths to entire world. It is subsidiary of ABF
(Associated British Food) group. It offers innovative and fashionable cloths at reasonable rates.
Primark is a leading company so that it provides limited liabilities to its stakeholders. The main
motive of this company is to provide quality of goods and services to customers at affordable
prices along with value added services. Its business operations are governed under the laws of
England, Scotland and Ireland. Primark main objective is to offer range of product and services
according to customer demands and their needs (Popescu, 2013). In addition to this, it can be
stated that Primark is considered as private limited company which focuses on profit
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maximisation so that goals and objectives can be accomplished. It has been witnessed that
diverse range of products are being provided in order to meet the needs of customers. Company
is continuously focusing on improvement in supply chain in order to ensure that overall services
can be advanced in desired manner. Primark have been to supply quality and affordable product
to the customers with a focus on new promotion (Cai, and Yang, 2014).
Primark is the public limited firm.
 Vision of the cited firm is to offer products and services in entire world.
 Mission of the Primark is to enhance profit and to provide satisfactory services to the
clients so that they be loyal towards the brand and give positive feedback to others.
Company wants to enhance its brand reputation and want to expand its business
worldwide.
Private Limited Company- That kind of business organization is established for the
purpose of earning maximum profit by offering various kind of product and services to market.
Market influencing factors like demand and supply plays an important role in decision making
process of an organization. 5 forces porter model also influence the business strategy of an
organization (Popescu, 2013). By having an application of diverse methods the businesses can
have better opportunities in the market.
Public limited company- That type of organizations are established for the purpose of
sharing its share to the companies. Its profit are to be used for the further development and
growth of an organization. British Airway is a public limited company. International airline
group has acquired British airways. Public needs are being considered as critical aspect while
having a designing of structure so that goals and objectives can be accomplished in desired
manner (Cai, and Yang, 2014).
Franchises- Business organization mainly focused on brand value, reputation, expertise
and experience of Franchisor. McDonald's and KFC are the best examples of that kind of
business organisation. Franchisor gets substantial amount of fee and licence along with its brand
values that helps in to spread their foot prints (Popescu, 2013).
Partnership- Joint ventures are formed in order to share risk and investment in a
business. Partnership gives strength to business organization towards the establishment and
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smooth functioning of organizational activities. Sharing of knowledge and skills helps in further
growth and development of business activities (Sena Ferreira and et.al., 2012).
Sole trader- Sole traders are a single proprietorship who own their business without any
partners or funders. The core purpose of sole trader is to make complete control over their
business activities in order to generate maximum profit with optimum utilization of resources.
1.2 Describing the extent to which Primark meets objectives of its different stakeholders
Primark has several stakeholders that makes impact on organization by direct and indirect
way. There have been several actions taken by company to meet the objectives of its different
stakeholders. Each and every stakeholders is important for the sustainable growth of an
organization. They have rights to know about the company financial position and performance
related informations. Primark has been published annual report where all the information are
presented related to company performance as well as financial position of a company.
Suppliers- Primark main objective is to provide transparent transaction system off both
money and service. Earning profit, fair price, timely payments, brand value awareness and
market share have some objectives of suppliers to Primark. Suppliers are the raw material service
provider to an organization. If company makes some changes in its product quality and new
development of any kind of product that time essential information are to be provided to
suppliers that helps in to effectively manage the raw the material quantity and quality according
to changes in several circumstances.
Shareholders- Management plays an important role in formulation and implementation of
business strategies under consideration of stakeholders needs of Primark. Shareholders main
focus on the Primark short term and long term profits because it helps the investors in decision
making process of investment. Primark takes opinion and advice from most powerful
shareholders regarding to shape an renovate the organizational functions towards the smooth
functioning of all operations and activities (Sena Ferreira and et.al., 2012).
Employees- Primark meet the employee objective or expectations by proving attractive
incentives, satisfactory wages, prestige , growth opportunities and career development.
Employees expect and demand for stable and healthy work culture within an organization along
with various benefits and equal work opportunities.
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Customers- For a customer Primark main objective is to provide high quality of services
in an efficient way with timely response because customers are highly responsible towards the
revenue generation. It has been noticed that if company customer needs are not properly
accomplished then it will impact the overall outcome. Through considering customer needs the
sales and profit margin can be advanced effectively.
Government- Govt. plays an important role for the environment or legislation changes
that can be harmful for organization productivity so that it protects the organization productivity.
Tax, job creation and creation and major contribution by company in country economy have
some expectations of government to the cited company.
1.3 Explaining the responsibilities of Primark
The role of Primark is dynamic in nature because it vary over the year. Following
changes are basically related to customers expectations and demand from the suppliers and local
communities (Babatunde, and Adebisi, 2012). The main role of cited organisation is to
effectively meet the challenges in order to fulfils the customers expectations.
Responsibility towards the environment- Every business organization promotes their
business in way to maintain environment sustainability. Primark company integrates both social
and environmental factors. CSR is generally used in an organization for the purpose of balancing
between economic, environmental and social imperatives.
Responsibilities towards the stakeholders- Primark organization are responsible towards
the involvement of stakeholders in decision making process, and to determine and understand the
company objective. Company uses various strategies towards the accomplishment of its
responsibilities.
Ethical responsibilities- Under this responsibility, company uses fair trade, environment
protection, honesty are some ethical accountabilities of Primark. Towards the achievement of
these factors, company needs to use various strategies like fair pricing, fair trade contract,
packaging, regulations on wastage for environment protection, ethical marketing and CSR
activities are also be consider under the ethical responsibilities. In order to have better
opportunities and meet key needs of stakeholders the business firm is well focused towards
improvement in social needs. Using CSR activities overall opportunities can be advanced and
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