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Case Study Of Primark - Business Environment & Its Significance

   

Added on  2020-02-03

20 Pages6477 Words115 Views
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INTRODUCTION Business environment is the combination of different set of conditions such as social,economic, technology, political, etc. These all are affecting the business operations either in apositive or negative manner. Interaction between business firm and its external environment givesstrength to the organizations by focusing over effective utilization of resources (Haidrer, 2010). Thisthing makes company more flexible and dynamic in nature to run the business in marketplace.Business environment helps the enterprises to ensure survival and growth of trade in diversesituations. With the help of this, companies can forecast the future or predict changes in externalenvironment in advance. It enables the business enterprises to study environment and preparestrategies according to them to attain the business objectives (Worthington and Britton, 2015). Thepresent research is based on business environment where to understand its significance; case studyof Primark is taken into consideration. It is a subsidiary company of Associated British FoodsGroup. There are more than 238 branches in the UK, Ireland and Europe (Aydin, and Kirişci, 2013).The cited firm’s products and services have become distinctive in nature. Organization has mainlysourced its products from suppliers in Asia and Europe. Along with this, China, India, Bangladeshand Turkey are also the key sourcing countries for Primark. Objectives that will be covered underthe current investigation are organizational purpose behind doing business, nature of nationenvironment on which business operates and significance of the global factors that shape tradeactivities of Primark (Hamilton, and Webster, 2015) .TASK 11.1 Identifying types of organisations and their purposePrimark is a Public Limited Company where its shareholders have limited liabilities towardsthe organisation. Business has been operated by organisation under the laws of England, Scotland,Wales and the Republic of Ireland. The purpose of company is to provide quality goods tocommunity at cheap prices with value added services (Kubasek, Brennan and Browne, 2016).Another aim of cited firm is to offer customers with a wide range of commodities and to cater alldiverse end user’s needs and wants. This has helped Primark to develop a large consumer base andinfluence them for repeat purchases. Public sector: The organisations belongs to public sector which is having an aim to providegoods and services to public at affordable rate by not focusing over generated profit. These havebeen managed by government either directly or indirectly. Public limited companies have financedby regulatory bodies where they are either owned by the government itself or purchasing majority3

of shares. These are listing in stock exchange board of the nations. Purpose of these types ofenterprises is maximized wealth of shareholders by generating high profit and ensuring growth ofbusiness. Example of public limited company is Tesco, Sainsbury, Next plc and Associated BritishFoods Group (Hamilton and Webster, 2015). These all have the same objective i.e. earning profitsby offering high quality of products and services to customers at affordable prices. Charity: These are Non-Governmental organisations which run their activities and otherorganizational works by getting donations from individuals or group of people. Purposes of thesefirms are gaining the attention of community towards social issues and resolving them completelyfrom the root of occurrence. These are also looking for the welfare of people who are facing someserious societal, physical and financial problems (Fernando, 2011). CHS Group is a charityorganization which provides a wide range of high quality, good value homes; support and careservices across Cambridgeshire to the people.Cooperative: These are jointly owned organizations that are engage in various operationalactivities such as distribution of goods, production of products, etc. Purpose of these types ofcompanies is to be set out the particular outcome that members of the firm can attain them on thebehalf of the business (Wijaya, Spruit, Scheper and Versendaal, 2011). Examples of cooperativeenterprises are Daily Bread Co-operative, London Capital Credit Union, and The Co-operativeBank.1.2 Describing the extent to which Primark meets objectives of its different stakeholdersPrimark has several stakeholders which directly or indirectly get affected by the actions oforganisation. There have been several actions taken by company to meet the objectives of itsdifferent stakeholders. Objectives of partners of cited firm are as follows: Shareholders: They have focused over Primark’s short and long term profits so that they can easilyget the best returns on investment. They have expected that company increases its market share invarious geographical locations. Along with this, another aim is to maximize the value of corporationwithin short span of time (Hutchison, Noy and Wang, 2010). Employees: Workers of Primark have some objective or expectations from company such as gaininghandsome amount of incentives, satisfactory wages, prestige, growth opportunities and careerdevelopment.Trade unions: Primark trade unions have expected from the management that organization shoulddevelop good relations with employees, establish and maintain industrial relationship. Along withthis, they have anticipated that firm should offer at set minimum wages to personnel (Aruoba andChugh, 2010). 4

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