The meaning and importance of business environment

BUSINESS ENVIRONMENT

Table of Contents
BUSINESS ENVIRONMENT........................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Identification of various kinds of business and its purposes............................................3
1.2 Description of the extent through which Primark meets the objective of different
stakeholders............................................................................................................................4
1.3 Explanation of the responsibilities of Primark towards its stakeholders..........................6
TASK 2............................................................................................................................................7
2.1 Description about the economic system and its types......................................................7
2.2 Impact of fiscal and monitory policy................................................................................8
2.3 Competitive policies used by Primark..............................................................................9
TASK 3..........................................................................................................................................10
3.1 Pricing and output decisions in different types of markets............................................10
3.2 Impact of market forces on the organisational purpose. ................................................10
3.3 Judge how the business and cultural environments shape the behaviour of a selected firm.
..............................................................................................................................................11
TASK 4..........................................................................................................................................12
4.1 Importance of international trade to business organisations of UK...............................12
4.2 Global factors which are influence to UK business organisations.................................13
4.3 Evaluate the impact of policies of the European Union on UK business organisations.13
CONCLUSION .............................................................................................................................14
Recommendation ..........................................................................................................................14
Self Evaluation ..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
In order to survive in the competitive market, every business organization have to analyze
its business environment(Wu, 2009). It is a mixture of internal and external components which
largely affects the business activities and function of the corporation. By conducting effective
analysis, firm can operate its business function in the country. In other word it can be said that
business environment is that composition of internal and external factors which influence firms
entire process, system and practices. It includes various kinds of stakeholders such as employees,
customer, government, investors and suppliers. In order to bring effective functioning, company
have to consider all stakeholders participation and interest. The present project defines the
various kinds of internal and external components of business environment and its impact on the
activities and function of the Primark. It is world famous subsidiary company of the ABF
(associated British food) group. It have more than 100 stores across British and Ireland and it has
become distractive for offering unbeatable value whilst never losing its innovative, fashion drive
edge. This report has addressed the fiscal and monetary policies and its impact on the housing
and farming business(Wild, Wild and Han, 2014). Furthermore, various kinds of economic
system and its importance in the economy has clearly defined in this report. The major objective
of this research is to understand the impact and importance 0of business environment on the
Primark and other retail businesses. In addition to this, in the last part of the report addressed the
significance of international trade to UK business organization.
TASK 1
1.1 Identification of various kinds of business and its purposes
Private limited company- The Primark is the world famous retail outlet which has
launched in 1969 from Dublin and Ireland. Now it has expanded its business operation in the
Europe, UK and many part of the British. Generally, a private limited company have objective is
to generate profitability by making customer satisfaction. Beside this, this types of organization
generates the profit so as they can render effective return to its shareholders and investors.
Similar to this, Primark have also objective to earn maximum profitability by deliver excellent
quality of product and services and make its customer highly satisfied (Chow T and et.al.,2012).
For this purpose, cited venture continuo’s giving its best efforts to produce excellent quality and
innovative products. Primark is dealing with consumer products such as clothes, shoes, home

ware, women accessories, kids wear etc. Aim and objective or Primark is to provide the public
with the good quality products at the cheap rate which helps in attaining the goals and objectives.
Mission statement of the company is to provide the better quality product to the consumers
which is relatively low so that they can attain the success at the time of high competition.
Public sector organization- Public sector organization are those whose business operation
and ownership are being managed and controlled by the government of an economy. The major
objective of these organizations is to exertion for common welfare society(Ullah and Lai, 2011).
Thus, public sector firms use to offer services to society disregarding their ability to pay. For
example, national health service is a public sector corporation which is administered by the
government and offer health care and medical services to the society.
Sole proprietorship – The business entity which operates at the small scale business.
Along with this it is owned by single owner who takes the responsibility in managing the
operations of the firm.
Partnership – It is a business enterprise that is owned and controlled by the two or more
partners. Along with this it helps in managing the activities of the business entity and share all
the profits and losses.
Charity organizations- This kind of business have objective is to work for welfare of
society or any community rather than making profit and it is a non profit companies. For
example, the American red cross is a charity firm which provides bloods to various persons or
patients who required blood at the time of crisis.
1.2 Description of the extent through which Primark meets the objective of different
stakeholders
In every business organization, stakeholder is those people who have various kinds of interest
of the corporation. They are those people which directly affects by the business activities and
function so firm have to make consider while it takes any kind of action and decision regarding
business practices and function. In the similar way , Primark’s stakeholders such as customer,
employees, investors, suppliers, government also influences by the business norm, policies,
practices and function. The way in which said firm use to fulfill its responsibility towards
stakeholders are as follows-
 Customers- Primark is a company which deals with the customer products like clothes,
accessories, home ware good etc. So that customer can highly affected by the business