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Business Environment- Purpose of Different Organizations
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Added on 2019-12-18
Business Environment- Purpose of Different Organizations
Added on 2019-12-18
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Business Environment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Type of organization is Primark and their purposes ............................................................11.2 Extent to which Primark meets the objectives of its different stakeholders ........................21.3 The responsibilities of Primark as an organization and the strategies employed to meetthem ............................................................................................................................................3Task 2...............................................................................................................................................42.1 Different economic systems and their allocation of resources..............................................42.2 Impact of Fiscal and Monetary Policy..................................................................................5TASK 3............................................................................................................................................73.1 Effect of Pricing and output decisions on business organization.........................................73.2 Effects of market forces on organizational structure............................................................83.3 business and cultural environment.......................................................................................8Task 4...............................................................................................................................................94.1 Significance of International Trade to UK business organisation........................................94.2 Impact of global factors on UK business organisation.......................................................104.3 Impact of policies of European Union on UK business organisation.................................11Conclusion.....................................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONThe combination of all internal and external factors that affects a company's operatingsituation is referred as business environment. It includes various factors such as customers,suppliers, competitors, change in technology, legal and government regulations, social andeconomic trends (Aula, 2010). Present report is on Primark which is a subsidiary company ofABF ( Associated British Food ) groups. It was launched in 1969 and by 2012, it had 238branches operating across UK, Ireland and Europe. It does not manufacture goods itself, itsexpertise lies in understanding the customers and then working with suppliers to produce goodsas per Primark's specification. The profitability of the company relies on high volume of saleswhich is achieved through economies of scale and efficient distribution of its products. Thisreport focuses on identification of purpose of different types of organisation. Further it alsoexplains economic system and allocation of resources. Lastly it explains the market structure andits impact on determination of the pricing and output decisions of an organisation.TASK 11.1 Type of organization is Primark and their purposes Primark is a private company established in UK. The company is engaged in the businessof fashion industry and offers varied range of products, which includes clothes of men ,women,children, accessories, footwear, beauty products and confectionery. company is listed in topfashion companies along with Zara and H&M (Iskanius, Page and Anbuudayasankar, 2010).Primark has a planned strategy about selling its products at a low price so that it can attractcustomers more for increasing profits. It has 290 stores . It has its largest office opened at marketstreet, Manchester, England. The basic purpose of company is to maximize its wealth and profitsof company. It focuses to provide good quality services to customers so as to build good willamong them. The basic purposes of company includes:To provide satisfactory services to its respected customers.To offer products and services at a lower rate so to make the customers realize that its agood company .To build a close and healthy relationship with the customers.To opt for strategies that can maximize their profits and wealth, so that company canoffer high dividend to its shareholders.1
The basic purpose of company is to achieve economies of scale so as to work efficientlyin different market conditions.On the contrary to this, another type of organization is public sector organization.Example for this include Tesco is one of the public company listed in UK working in a retailbusiness. Its field of business includes books, clothing, electronics etc. its basic purpose includesto make company strong in food as well as non food divisions. It aims to provide its customersbest quality services on a competitive price and to develop its employees talent (Pulver, 2012).Further more it looks forward to provide different incentives to its employees time to time so thatit can encourage them to work efficiently in organization giving their best to it.1.2 Extent to which Primark meets the objectives of its different stakeholders Primark is a leading private company dealing in fashion industry. Company has differentstakeholders to whom the company is accountable for. Company's basic duty is to satisfy heircustomers and stakeholders imprinting good image about organization in their mind.Stakeholders are the persons who have an interest and concern in company (Kubasek, Brennanand Browne, 2016). Company has to take care of the concerns of its stakeholders effectively. Thedifferent stakeholders of company are enumerated as follows:1.Employees: Employees are persons who work for an organization to get the works andobjectives to be done properly. Employees expect from company to take care of theirinterests. Primark always seeks to fulfill the obligations towards its employees. It securesits employees about their job security, rates of pay scale etc. in case of any hazard,Primark also compensates them (Chow and et.al., 2011). Company focuses on to haverespectful and truthful relationship with its employees. Employees also get appreciationin reward of excellent work done by them. 2.Customers: Customers are one of the vital stakeholders for any company. They areresponsible for its success. More the customers, more profits and success. Primark desiresto deliver best and latest quality fashion product to its customers. They also focuses onthe continuous product monitoring as they get some of their products, manufactured fromother suppliers. Primark also has established an online customer care system throughwhich customers can register any kind of issues and get its redressed quickly. Customersare getting more conscious about the quality of products, so Primark aims to producetheir products ethically (Blanchard, Tolbert and Mencken, 2011). More over, Primark2
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