Business Environment and Organizational Strategies

This assignment delves into the crucial relationship between a company's business environment and its chosen organizational strategies. It examines how factors like economic conditions, social trends, and technological advancements influence an organization's structure, culture, control systems, and overall performance. The provided research papers cover diverse topics such as corporate social responsibility, international retail operations, environmental protection initiatives, and the impact of process recovery communication on customer satisfaction.

Business environment

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1............................................................................................................................................................3
1.2............................................................................................................................................................3
1.3............................................................................................................................................................4
TASK 2.......................................................................................................................................................5
2.1............................................................................................................................................................5
2.3............................................................................................................................................................6
3.1............................................................................................................................................................6
3.2............................................................................................................................................................6
3.3............................................................................................................................................................6
Task 4..........................................................................................................................................................7
4.1............................................................................................................................................................7
4.2............................................................................................................................................................7
4.3............................................................................................................................................................8
CONCLUSION...........................................................................................................................................9

INTRODUCTION
Business environment consists with macro and micro components which influence its
operations and activities in large manner. Every organization is affected by the environmental
factors so business is required to analyze these components in an effective manner. By conduct
effective analysis of business environment, firm can escape from its negative effects (Chow and
et.al.,2012). In other word it can be said that sum of internal and external factors are called
business environment. In this project report, purpose of various organization has been addressed.
Further, responsibility of business enterprise towards their stakeholders also discussed in this
report. The major objective of this report is to understand the purpose, responsibility, and
business environment of Primark. It is the world largest subsidiary organization which is dealing
with British food Group. It is famous for its innovative and fashion driving edge further it have
more than 100 physical stores across the Ireland and British.
TASK 1
1.1
Primark is the world largest retail outlet which is dealing with subsidiary of Food
product. It is famous because of its innovative and fashion edge and it have more than 100 stores
across the country. Primark is dealing with Netherland, Spain, Germany, Belgium , Austria etc.
Cited venture offers varieties of products such as men’s wear, kids wear, women’s wear, home
made accessories and other consumer goods (Czinkota and Ronkainen, 2012). The major
objective of this corporation is to develop innovative and creative products for its customer so as
it can deliver effective customer satisfaction. It desires to become number one and famous retail
outlet in the world. In addition to this, company main aim is to earn the maximum market share
and profitability by delivery an effective product and services to customers.
TESCO is a public limited company which aim is to earn maximum market share and
profitability by deliver effective product and services to customers. TESCO is a merchandise
retailer which headquarter established in the Welwyn garden at UK..Cited venture has positioned
by 3rd largest outlet in the world according to the research. The major objective of public Limited
corporation is to earn maximum shareholders value and earn the large profitability in the market.
1.2
From the previous discussion it has founded that Primark have major objective is to
deliver an effective and quality product and services to customers and earn maximum
profitability. It business operations and activities can affected by the stakeholders. Company
operation, functions, activities, purpose, scope, growth all are largely affected by the stakeholder
so corporation requires to maintain effective relationship with them (Chow and et.al.,2012).

Stakeholder are those individuals who are directly affected by corporation activities and
decisions. Company should provide relevant information about business growth, decline,
financial position to them. Primark have various responsibilities towards its stakeholders.
Following are some stakeholders of Primark-
 Customers- They is major stakeholder in the company which are interested in the
effective products and services in the reasonable prices. They are interested to get those
products and services of company which provide effective satisfaction to them. Further
they want accurate ad relevant information about product prices, features, discount and
availability on time to time (Zhang and Huang, 2012). Company can make effective
relationship with customers by provide updates about products and services and deliver
excellent quality of products and services in reasonable prices.
 Employees- Employees are other important stakeholders for company who gives their
best contribution in order to achieve predetermined objective. They wants accurate and
true information about the company financial status. Further they wants that company
treats as a valuable assets of them (Botha, Kourie and Snyman, 2014)..
 Government- Primark has major responsibility for this stakeholder. Government requires
accurate information about company’s financial status. Company is responsible to pay
regular tax and disclose all information about revenue in front of government.
 Suppliers- Suppliers Are those people who wants effective order for raw material
because suppliers delivers raw material and semi finished goods to company (Cai and
Yang, 2014). Further Primark have responsibility to disclose financial information with
them and make regular order for raw material. Firm can develop healthy relationship with
them by make payment on time to time basis.
1.3
Primark have major objective is to deliver innovative and creative product with excellent
quality and satisfy customer requirements. Further it is responsible to keep effective relationship
with customers as well as employees. In order to make effective and healthy relationship with
customer, cited venture have good efforts in the corporation social responsibility. Primark have
effective contribution into the society. It have supported to many local charities community in
the Uk market.CSR is an effective contribution of business organization towards workforce,
customers and familiy so as they can improve quality of life. In the context of Primark it have
follows fair standards of code of conduct for suppliers and deliver fair wages and effective
working conditions to employees (Hsu, 2014). By use of CSR cited venture have various involves
in many social works for society as well as employees..It ahs organize the programs for increase
awareness about health care education within female employees. This program has intension to
provide effective training to female workers in the organization so as they can know the
importance of health education. It understand the local culture and building self confidence
among the female workers in the organization.

TASK 2
2.1
As per the concept of economic system, government dealing with allocation of resources
with in society. Economic system is a mixture of wide range of institutes, decision making
process, agencies, entities that comprise the economic structure of community. In other word it
can be said that it is a system by which government distribute trade goods and services to
society.There are majorly three types of economic system which are as follows-
 Market economic system- It is a types of free market economy under which government
has no interferences. Government does not take any kind of decision related to resources
distribution, and segment of the economy. The entire procedure and control are in the
hand of people. They are supposed to take decision related economic run, supply of
goods in the market, determine demands of customers etc (Iqbal and Sharma, 2012).It can
be said that people takes all decisdion about business enterprise and there ahs no
interference of government.
 Mixed market economy- This is a economic system under which few participation of
government and few participation of people. It is a mix type of system which govern by
both
 Centrally planned economic system- In this economic system, the entire decision about
corporation are in the hand of government. It is responsible to take the decision about
production capital and manufacturing of goods and services. Further how much demand
and supply needs to generated and how production needs to proceed , all decision are in
the hand of government. There is no interference of people.
2.2
Monetary policy is related to the changing in interest rate and fiscal policy is related to
the governmental tax rate. In other word it can be said that Monetary policy is primarily
concerned about management of interest rates and total supply of money. This circulation is
generally carried out by central bank. On the other hand fiscal policy is related to the taxation
policy of government under which government assumes that there is not enough spending and
business activity in the economy (Bonanni and Cafazzo, 2014). The major objective of fiscal policy
is to target the total level of spending, the total composition of spending or both in an economy.
Government can make slow business activities and function by increase tax rates and pull money
out of the economy. Government policy targets industries and specific communities. This types
of policy will suitable for farming business under which government tax will affect the business
of farming.

2.3
Competitive policies are those through which organization can compete with rival in the
competitive market. With assistance of this competitive policy Primark can develop competitive
edge in the market. There are various types of competitive policies which are as follows-
 Office of fair trading- This competitive policy is very essential for Primark through
which company can make fair trade processing. In addition to this by use of this
corporation can escape from unfair practices such as scams and cartels etc. Primark can
beneficial by this policy because can make its business successful by delivery of fair
goods and services to customer in the market.
 Competition commission- This is very effective policy of competition through which
firm can escape it business from competition (Schneider and Schmidpeter 2012). Under
this competition commission, Primark can benefited by fair competition because this
policy is responsible for analyzing healthy competition between business organizations.
TASK 3
3.1
There are various types of market structure which have different concept about market.
Perfect competition is a structure of market where large numbers of buyers and sellers. In this
market the entry and exist from market is free for business organization. It means they are free to
entry and exist from market any time (Kitzmueller and Shimshack, 2012). There are large
numbers of homogeneous product produced in this market structure but customer have perfect
knowledge about each product as well as market. There are no government intervention and no
transportation cost. Primark will develop normal or reasonable profit and its prices of good and
services will kept low by competitive pressures. On the other hand oligopoly is a market under
which few firms and that have main objective is to earn maximum profitability or sales
maximum products. Those firms have to follows government regulation. If that firm will
increase prices of product then it may lose a large share of market because they become
uncompetitive as compared to other organization.
3.2
In the market force, demand and supply are affected buy the prices and quantity of goods and
services .Corporation requires to focus on its operations at the times of demand and supply of product
and services in the market. If demand of product is high then company requires to increase its
production and manufacturing procedure. On the other hand if demand is decrease than supply is also
decrease. If company inmvcr4se its prices of product then it may directly affect their process of demand
and supply of product and services in the market.
3.3
Cultural environment has largely affected the business operation of every business
organization. Culture is an attributes which defines by the personal value, beliefs, background of

individual. It can shape the environment of organization. In the business enterprise, there have
large numbers of employees whose have various beliefs and values related to their life (Batlle,
Pérez-Arriaga and Zambrano-Barragán, 2012). There ways of taking, interaction, apreances,
value reflect the culture of business. Primark should adopt effective culture so it can able to
develop an effective culture of business. There are various types of culture such as person,
power, task etc. These all culture have different aspect related to business organization and
structure. At last it can be said tat culture of business may largely affected to the environment of
corporation.
Task 4
4.1
In the present era, every business organization requires to increase its profitability by
expansion of business operation. In order to expand business, international trade is the best
option for firm through which it can easily acquire large numbers of customers and market share
in different country as well as existing country. International trade is a process under which
corporation survive its business activity and function in another country with intension to earn
maximum profitability and market share (Carvalho, Marques and Berg, 2012). In other word it
can be said that International trade is process of exchange goods and services with out of
countries boundaries. Under this seller is engaged with international buyers and company may
are the international barriers like technological changes, currency changes, legal and political
factor etc. The governmental interferences is generally high in this marketing as compare to
domestic marketing. Further capital investment and risk is also high. Primark has dealing with
various countries. Primark is dealing with Netherland, Spain, Germany, Belgium , Austria etc.
Cited venture offers varieties of products such as men’s wear, kids wear, women’s wear, home
made accessories and other consumer goods. So it can be said that company is engaged with the
international trade. There are various benefits of international trade through which company can
expand its business in the another country (Manova, 2013). With assistance of international trade
corporation can gain the advantage of high developed technology. It can boost its production and
manufacturing process by use of advanced technology. In addition to this company can
beneficial by highly advanced transportation systems (Borio and Zhu, 2012). It can sell its
product and services by another countries in an easy manner.
4.2
As per the above discussion it has been ascertained that Primark have various benefits by
use of international trade.There are various global factor which can affect the operation of
Primark in the UK. These factors are as follows-
 Political factor- In this factor includes governmental interference on the business
organization such as governmental rules, regulation, code of conduct, tax policies,
business norms etc.(Chor and Manova, 2012). Company have to consider these all

mentioned aspects at the time of business operation in the diverse countries.As primark
has dealt with various countries so it have to consider this factor in different country
beacise each country have their own rules and regulation about tax policies and business
norms.
 Economical factor-This factor includes the economic condition of the countries. It
includes pricing policies, recession, inflation, increase and decrease in interest rates and
impact on the business operation (Popescu, 2013). Primark is dealing with customer good
so the prices of goods are decided in different country according to economic condition
of country. The interest rate and economic condition can largely affect Primark business
activities and operation.
 Social and cultural factor Primark is a clothing and consumers product company so
social and cultural factors can largely affect its business operation. In various countries it
have to conduct research about the customers taste, preferences and culture. According to
customers preferences and changing fashion trend it have to develop product and
services.
 Environmental factor-Primark have effective contribution i8n the corporation social
responsibility. In this factor includes natural resources such as water, weather, climate,
air, sunlight etc. Company have to set its business operation according to environmental
condition of country.
 Technological factor- Primark have requirement of effective technology because its
entire business operation has largely depends upon the technology (DeLong and
Summers, 2012). The innovation and advancement of technology may affect the
production and manufacturing of organization
 Legal factor-In this factor includes laws and legislations related to taxations policies,
insurance policies, wages and related norms etc. Organization has to consider this
components in order to protect its business operation, customers and employees. It
includes various employment laws, customers rights act etc (Netzer, Feldman,
Goldenberg and Fresko,2012). Through which it can protect its business in the existing
country as well as another country.
4.3
European union is a political economic union which ahs developed by combination of 28
states and it is located in the Europe. It has developed an internal single market through
standardized system of law. The major objective of EU policies is to protect buyers and
corporation in the global market where many of competition are available (Schularick and
Taylor, 2012). This polices ensures that company should provide the fair and legal transaction
with another countries and provide effective quality of product and services to customers in fair
prices. Another advantage of this policy is to overcome abolished selling tax and provide
freedom to business organization from restrictive fiscal policy measures.

CONCLUSION
Business environment has largely affected Primark business operation. From this project
report it has been concluded that Primark have effectively considered global factors in the
various countries. Further international trade is beneficial for Primark through which it has
achieved the advantage of advanced technology and transportation. In addition to this fiscal and
monetary policy affects business organization at large manner. It has been also concluded that
Primark has develop effective cultural environment at workplace so workforce can develop
effective outcomes. Cited firm should effectively analyze its business environment so as it can
cope up with environmental changes.

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