Business Environment Assignment - Primark (PPT)

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions that link with objectives and
structure..................................................................................................................................1
TASK 3............................................................................................................................................3
P4 Positive and negative impacts the macro environment upon business operations............3
TASK 4............................................................................................................................................4
P5 Conduct internal and external analysis to identify strengths and weaknesses..................4
P6 Explain strengths and weakness interrelated with external macro factors........................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment can be termed as the sum of entire internal and external
determinants which influence a business activities. It is fundamental to understand and internal
and external components which can impact over the practices of business. Safety and health
regulation is an extrinsic factor which can affect the operations of business. This assist in
carrying out innovative and creative ideas in for functioning business organisation along with
maximising the outcome and benefits which can be attained. This plays a vital role in the
enterprise or business activities which has numerous benefits specially while developing a proper
engagement and involvement of activities in significant manner. Major purpose of this report is
to understand aspects of business environment studying the case of Primark which is an Irish
accessories and clothing organisation, a subsidiary enterprise of AB Food (Aterido, Hallward-
Driemeier and Pagés, 2011). The report will carry out different sort of organisation on the
grounds of scope, purpose, size and their traits. It will light over relationship of business
functions with structure and objectives of enterprise. It will also conduct proper external and
internal environment evaluation through understanding the weaknesses and strengths. External
and internal working environment are associated with each other which will be studied in the
present report.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between different organisational functions that link with objectives and structure
They had considered that each company concentrate on their activities as well as
functions so that they can operate in an proper way and it will help in achieving the objectives
and goals within the company (Fernando, 2011). Firms activities are customers services, IT,
Administration, accounts and finance, research and development, operations and production,
sales and marketing, human resource etc. these all are very important to operate in an effective
way. They play a very main role in performing enterprise activities or operations as well as
maintain properly so that objectives or goals can be achieved successfully in an effective way.
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Each activities are interlinked with enterprise targets and goals that must be meeting in a given
period of time. Some of clear descriptions are discussed below: Marketing departments: It is a main relationship within a marketplace which aid to a
company in giving a better consumers satisfaction. It is an very supportive and effective
for person either they are suppliers as well as customers to analysis present conditions,
particular trends and market situation by analysing environment (Gecevska and et. al.,
2010). PRIMARK also involve and concentrate on giving effective informations as per
new fashion trends as well as modern trends in accessories or clothes by using effective
techniques and techniques and tools so they can aware about targeted peoples. It will help
in meeting objectives and goals in an appropriate manner. Finance departments: It is an backbone of each company as it help in operating an
business as finance should be needed to run the functions of business in an proper way. It
is mainly linked with expenditure or expenses while running activities as well as how
company utilise their resources for overcoming with all prices so that set goals can be
meet in an proper way. This company focus on proper allocating of funds within various
enterprises functions so they can operate functions in an proper manner. PRIMARK also
maintain financial statements, cash flow and many others. It is duties of internal auditors
for monitoring and checking financial performance within company. Research and development: It play a very main role in evaluating proper services and
goods so that buyers wants and needs can be satisfied and also achieve results.
PRIMARK also conduct such activities and organise study to evaluate present trends,
market positions and customers desired expectations by undertaking effective techniques
and tools to get proper information (Cantwell and et. al., 2010). Organisation also
implement the formulated policies, regulations and rules while doing survey or research.
It is an most necessary components that aid in giving proper services or products. It is
also aid in enhancing profitability and productivity which operating a enterprise
functions. Production Department: It is an main activity which can be performed in an proper way
due to company is depending on its services and goods that are going to give to a targeted
peoples as well as meet set objectives and goals (Hamilton and Webster, 2015). It is
important that help in satisfying the needs and wants of customers can maintain with each
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others. Organisation have to concentrate on their departments for the aim of producing
best goods according to customers needs as it will support in impacting consumers
behaviours towards buying and they are ready to pay money for purchasing specific
products. PRIMARK also find out buyers wants and needs and produce new trends cloths
that various numbers of consumers can attract. Human resource department: It is an most important activities for each enterprise
company as they are having their duties for managing whole workforce or team within
company. It is business concern with managing a people while operating enterprise tasks
are run by them so that goals and targets can be finished in an effective way (.Klapper,
Lewin and Delgado, 2011). It paly a very main role in maintaining and managing the
whole activities by distributing work within peoples. PRIMARK concentrate on workers
development by conducting the sessions of learning and training programs so that it will
help in enhancing abilities and skills in an effective way.
 Finance and accounting department: It play a main role for enterprise management so
that they can predetermined their goals. PRIMARK companies aid in managing the
department of accounting in an proper way as divisions are aid in maintaining the
functions of commercial in which they give priorities to provide finance as per their
demands and particular needs of marketing. PRIMARK concentrate on its financial
activities as they used in adequate way so that maximum results can get as well as profits
can also earned.
TASK 3
P4 Positive and negative impacts the macro environment upon business operations
For each successful companies there is need to evaluate weakness and strength of
organisation so that proper techniques can me made (Osterwalder and Pigneur, 2010). It can be
possible by external and internal analysis support in finding out demerits and merits so that
organisation can achieve their desired results.
Strengths:
 There are around 50000 persons all over the globe.
 It deals in various numbers of goods like as women, menswear , wear footwear and
accessories in the market.
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 They are concentrating on advertisements like as word of mouth that aid in decreasing
price.
Weaknesses:
 There are very low chances to gain profits because to slow down the growth of economic
of EU. Next weakness is outsourcing for manufacturing goods may be non consistency as per
quality (Scheer, 2012).
Opportunities:
 Primark can open stores in other countries like as Indian, South Africa and China. They can segment in sportswear too.
Threats:
 EU is facing crises in economy which is a main threats for organisation.
 Lots of competitions within market can affects on enterprise.
TASK 4
P5 Conduct internal and external analysis to identify strengths and weaknesses
This can be considered as one organisation has influenced from numerous factors of
environment that is surrounded over them. This is fundamental to evaluate main forces which
directly influence on their operations and business organisation itself. In this external and
internal determinates that influence on the activities and operations of business can lead to failure
of operation of business. They often impact on numerous processes such as corrective actions,
decision making adaption and formulation of strategies of techniques so that preset objectives
and goals can be attained in more through executing so that it can service from each and every
individual in efficient manner (Shigang, 2010). This can be possible for control and manage over
various forces so that this can influence the negative elements as well. Primark have to undertake
some major strategies and techniques for reducing such negative influence in suitable manner.
Here are mentioned some of the major policies and factors mentioned as below:
Political and legal factors: These factors of business environment are generally beyond
control of an organisation. It includes rules and regulations made by government of a country in
order to force enterprises to run business in a legal manner. Therefore, these elements act as a
barrier in carrying the business operations smoothly. Along with this, managers of a company are
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needed to focus more on political legislations when they move business from national to
international level. Thus, in context with Primark, this firm also required to examine legal factors
as well as comply its business with all necessary rules and regulations. Some negative and
positive impacts of such political factors are: Positive impacts: Political rules are generally made to prevent an organisation from
corrupt activities. Therefore, by concerning on these regulations, a company can operates
its business in a legal manner. In addition to this, compiling business with legislations aid
firms in getting high attention of customers towards its products or services. Negative impacts: Policies and legislations made be regulatory authorities impacts on
profitability of a business. These rules arise various barriers in trading services as well
executing the plans.
Economic factors: Changes in economic rates creates a huge impact on profitability of a
firm. It includes heavy taxation rate, fluctuations in interest rate and more. Therefore, an
enterprise needs to examine negative and positive impact of this factor for its business while
trading commodities in other countries (Wild, Wild and Han, 2014). Positive impacts: Through monitoring changes in economical rates, a company can make
proper decision as well as effective planning of business activities. This would help in
generating high revenues and enhancing profit share at marketplace. In addition to this,
operating business activities in a proper manner helps in increasing economy of business
which directly contributes in enhancing GDP of a country also. Negative impacts: Tax rates, trading policies, deflations and more create a negative
impact on business enhancement.
Social factors: This factor impacts directly on the sales performances of a company as it
is directly related with needs and demand of customers living at a particular place. Manager of
an enterprise need to concern more on determining requirement of people in context with
lifestyle, trends, taste and preference of them. Therefore, Primark consider more on creating
modification in products or services as per requirement of people. Positive impacts: Creating modifications in products help in enhancing brand image of a
company. In addition to this, determining needs of customers, situation of marketplace as
well as purchasing power of people aid firms in manufacturing the products accordingly.
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 Negative impacts: Meeting demands of customers on time generally requires various
changes in operations and productions of a company. Thus, these changes need lot of
finance and money as well as includes various type of risks.
Technological factors: This is one of an important factor of business environment which
gives various benefits to companies. By introducing latest technology in production, an
enterprise can manufacture good quality of products as well as in short interval of time. Positive impacts: Advance technologies help in running all operations of a business in a
smooth manner. It reduces cost and time of manufacturing a product as well as utilising
the resources in a more profitable manner.
 Negative impacts: For Primark, introducing latest techniques is not affordable as it has
faced various financial issues. Thus, it cause negative impact on brand image of this firm
at marketplace.
P6 Explain strengths and weakness interrelated with external macro factors
Macro environment has been developing and making major impact on company
performance and in productiveness. All the firm has surrounding their different components
which are associated with business operations and is functions which directly affect their sales
and gain high amount of profitability. There are certain macro environmental factors such as
political, economical, social, legal, technological and environmental that determining all the
macro factors which create negative impact on business operations in badly manner. This will
also create positive and negative on firm. So the management required to consider all factors
which occurs within an organisation (Wild, Wild and Han, 2014). Along with this, there are
other major factors which directly impact on business policies and strategies. Company
managers of cited company determine all the external factors for formulating and developing
effective plans of actions which help in improving success and growth at large market place.
External business environment consist with alteration which create direct affect on business
operational activities and functions. It has reticulated with firm strength and weaknesses along
with all macro environmental components in different ways that are described as under:
Social factors: This is that factor which is totally based on buyers needs and demand
which are satisfying their organisation through manufacturing products and services in proper
manner. An organisation formulating and developing appropriate marketing plan which help in
identifying customers requirements and needs and as per this they produce social factors,
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commodity, values, ethics and describe that how such type of components can be related with
firm for gaining high amount of profitability and productivity in accurate manner.
Technological factors: With the help of adopting latest techniques and methods, they are
making higher profitability and income for satisfying their customers needs and wants in proper
way. For adopting latest technology, company are able for producing quality based services
which assist in gaining competitive advantages so this will compare to their rivals in the same
industry which increasing success and growth within an organisation. Along with this,
technology is fast growing changes in current business environment which directly affect on
organisation working procedures in negative manner. They required to adopt latest techniques
and methods which assist in manufacturing innovative products and services for fulfilling desired
requirements and needs in given time period. Also they can deliver major equipments, machines
and other durable assets for manufacturing sections. This will assist in developing and making
quality based goods and services in given time frame work.
Economical factors: There are certain economical factors such as taxation policies,
balance of payment, rate of interest and some which are directly affect on organisation
presentation and its financial status in the large sector. With the help of this, management and
administration are mainly responsible for managing and examining whole market situation and
changes that affect company performance and their income. The firm also focus on managing,
organising, controlling all business activities and functions in better manner according to their
creative and innovative ideas.
Political and legal factors: The authorities are developing and making rules or
regulations such as trade policies, labour laws, taxation, globalisation, etc. this is required for all
firm which has been follow such laws and legal rules for smoothly running the business activities
and functions in effectively (Wild, Wild and Han, 2014). This will assist in protecting different
issues and conflicts which reduces the negative impacts on an enterprise performance. Therefore,
company are capable for getting competitive advantages in the sector. For gaining sustainability
in the market place then it is necessary for reach with all needs and demand in effective manner.
Environmental factors: The organisation has been regulated and operated their business
activities or functions which are around different environment factors such as natural resources.
On the other hand, it is required for firm is to analysing such components which create huge
impact on business operations and its functions.
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CONCLUSION
This can be affirm from the described research report that each type of business
organisation is classified into major three categories i.e. private, public and voluntary i.e. distinct
from each other on the grounds of organisation functioning. It can be determined as there are
numerous organisations types which differ on the grounds with contrary nature which also are
different from each other on the grounds of sizes and scope on the basis of voluntary, public and
private accounts. Firms activities are customers services, IT, Administration, accounts and
finance, research and development, operations and production, sales and marketing, human
resource etc. these all are very important to operate in an effective way. It can be possible by
external and internal analysis support in finding out demerits and merits so that organisation can
achieve their desired results.
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REFERENCES
Books and Journals
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growth? Business environment and employment growth across firms. Economic
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Cantwell, J. and et. al., 2010. An evolutionary approach to understanding international business
activity: The co-evolution of MNEs and the institutional environment. Journal of
International Business Studies. 41(4). pp.567-586.
Carroll, A. B. and Shabana, K. M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management reviews.
12(1). pp.85-105.
Cavusgil, S. T., and et. al., 2014. International business. Pearson Australia.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Chow, A. T., and et. al., 2011. Broadband network with enterprise wireless communication
system for residential and business environment. U.S. Patent 7,944,948.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Drucker, P. F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Fernando, A.C., 2011. Business environment. Pearson Education India.
Gecevska, V., and et. al., 2010. Product lifecycle management through innovative and
competitive business environment. Journal of Industrial Engineering and Management.
3(2). pp.323-336.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development(pp. 108-
123). Palgrave Macmillan UK.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Scheer, A.W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science, 6(11), p.64.
Wild, J. J., Wild, K. L. and Han, J. C., 2014. International business. Pearson Education
Limited.Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook
for visionaries, game changers, and challengers. John Wiley & Sons.
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