Contemporary Business Environment

This report explores the ways in which business, cultural, and natural environments shape the behavior of organizations. It discusses the impact of economic and non-economic factors on business operations, focusing on PRIMARK, a leading retail company. The report also includes a SWOT analysis and PESTLE analysis to understand the internal and external factors influencing PRIMARK's business.

Contemporary Business
Environment

INTRODUCTION.......................................................................................................................................3
MAIN BODY.................................................................................................................................................4
In what ways business, cultural and natural environments can shape the behavior of the organization4
SWOT ANALYSIS.................................................................................................................................7
PESTLE ANALYSIS..............................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES..........................................................................................................................................10

INTRODUCTION
Contemporary Business environment refers to the modern business environment where
goods and services are exchanged or sell for the money to the person. It describes the concept of
the system that is related to the continuously changes in the environment that impact the business
activities in a positive and negative sense. Any business function can be done successfully by
using finance resource without it any organization cannot be success. This term encourage the
company to be socially responsible so that they will help the society at the same time earning
more and more profits. It means that the firm is responsible for the welfare of the community
with the balance their revenue making. Rivalry among the business enterprise without any frauds
and misunderstanding is the core objective of the modern business environment. In this business
environment are of two types i.e. internal and external environment. Intrinsic environment refers
to that environment which is related to the human, finance resources, organization capabilities,
objectives and policies that is helpful in making the business at high level and helps in earning
higher profits. On the other hand, external environment refers to that, which is related to outside
the business and affect the overall activities that has no control over it. It includes social factors,
economic factor, technological, legal, natural, political, geographical, demographical etc. by
using this modern business environment in any company it will helps in develop the logical and
reliable strategies that will assists in decision- making process, planning and controlling the
functions that has been helpful in earning more brand image and increases the profit margin and
longer sustainability in the market place(Barr and et. al., 2018).
PRIMARK is one of the famous Irish fashion retailer that was established in United
Kingdom. It is also subsidiary of food processing at their retail shop. There are approx 370 stores
over 12 countries and where they sell a large number of product ranges that includes baby and
children wear, menswear, women’s clothing, home ware, footwear, confectionery, accessories
and salon products. They charged their product price at low cost which is less than their
competitors. The company can also contribute to the contemporary fast fashion trends. The main
mission of the firm is to provide consumers at high quality product offerings that is worth to the
price and the customers are comfortable to buy that goods and services(Albescu, 2015).
Therefore, this project report includes the data related to the economic and non –
economic environment conditions that affects the business units and their operations within the
organization. Further it suggest the intrinsic and extrinsic factor that influence and encourages
the behavior of the business enterprises by using SWOT Analysis for internal factor and
PESTLE Analysis for external factor that helps in finding the opportunities and threats that was
present in the organization. Or to know the strength and weaknesses of the internal resources that
helps in earning more and more profits and for longer sustainability in the company. It also
examine the cultural and natural factor that will shape the PRIMARK business in their long run.

MAIN BODY
In what ways business, cultural and natural environments can shape the
behavior of the organization
Business environment - It refers to a collection of cultural and natural factors that
influence all the business activities. In this manager of the company have a great knowledge of
controlling and managing the internal factors but has no power to control the external factor. In
this there are two sources of factor i.e. natural factor and cultural factor and in cultural factor it
includes economic and non-economic factor that is consider by a PRIMARK manager to know
the opportunities that was very helpful in generating the revenues that are describes below.
ECONOMIC ENVIRONMENT
It refers to that factor which includes all the implications that was present in the
economic environment of the country. All the business enterprises play an important role in the
economy environment and its institutions. All of them works for a increasing a revenue and
longer survival of the company. It is highly complex in nature which includes economic system,
economic policies and economic conditions. Every company survival is totally depend on the
positive business condition which affect the business profit in a positive way. In context of
PRIMARK, which is one of the best leading retailing company in UK and operates its business
in a dynamic environment. Because of this it faces many difficulties in decision making process
in this highly changing environment. At present in United Kingdom there is Brexit occur and
because of this many European countries are separate from this EU union. It includes various
laws and regulations that were fluctuated the business activities and sales. In includes three
factors that are explained below(Temelkova, 2018). Economic conditions- This condition involves the legal and institutional activities on
the basis of which country economy is based. It includes various activities that is related
to production, consumption, distribution, exchange growth that was related to the
institutional framework like laws, social institutions and customs of a present country. It
is based on the how to produce, whom to produce and what to produce. In UK there is
Brexit occur and because of this the economy of the country is not so stable. This will
impact the business activities adversely. Therefore, because of this there is great downfall
in the GDP and because of this an individual income also decreases. This will impact the
company sales and profits. Because of the high inflation rate, exchange rates are high. In
context of PRIMARK, it adversely impacts the growth of the company and its sales and
their profit margins of the firms. It also affects the behavior of the organization because
of high inflation present in the nation(Cegliński, 2016).
 Economic policies- It refers to that factor which is included in the business environment
to meet the objectives of the business in a long run. It involves stability, predictability,
health and safety of an individual that is helpful at the time of decision making and
completing the task within the organization. It includes monetary policy, fiscal policy,

industrial, export and import policies. In this the government of the country focus on this
on a timely basis so that it will helps in bettering the economy of the nation. In UK, the
legal laws and regulation is stable there is no change in this due to Brexit. This will take
the advantage and relief to the PRIMARK company to operates their business unit as per
the policies and make a flexible culture in the business enterprises so that if there is any
change in the rules and regulations are present they will do changes easily and effectively
which cannot affect the sales and profit of the business.
 Economic systems- This systems refers to that which is related to the economy of the
country namely is of three types i.e. socialist, capitalist and the mixed economy. In these
three system United Kingdom follows the mixed economy that is the mixture of both
other system which means capitalist + socialist. This will helps the businesses to done
their trading globally because of no restrictions on the trade. After the Brexit, it faces
problems because many other European countries are separate from them the EU union
and this will negatively impact the economy of the nation. And all this conditions are
unfavaourbly affect the growth of the business of the PRIMARK. And because of this it
reduces its sales because of high price of the offerings after the separation and there are
peoples who have limited income. Although, this will decrease the sales and profit
margins.
NON-ECONOMIC ENVIRONMENT
Non –economic business environment consists of various factors such as natural,
physical, socio-cultural, legal, technological and political that encourages and influences by the
economic environment. It affects the business behavior, attitudes and its operations. It is very
important to focus on this type of environment because of longer sustainability in the market
place and for earns more profit and growth. In context of PRIMARK, manager must notify and
examine all this factor so it will enhances the employees performance and sales in the
company(Belyaeva, 2018). Socio-cultural environment- This factor involves the norms, beliefs, culture and ethics
of the society that will affects the business enterprises and their operations. Every person
in the country plays an significant role in the organization. It includes employees and
customers that help the company for better future and also increasing the profit margins.
If a company produce the goods and services according to the requirements of the
customers and without any wastage of resources than it will earn more and more profits.
As the consumers in the UK are very loyal towards the price and brand and they follow a
flexible culture which initiate the firm to make a goods offerings and sales to the people.
In context of PRIMARK, they sale the different range of products which positively affect
the business profits and revenues. Because they make the products as per the customer
satisfaction and without wasting the resources at the reasonable price.
 Technological environment- It is an important elements of the business environment.
As per the demand of the today’s people it is very necessary to promote their products

and services by suing online technology . in UK this factor influences more as every
individual are spending more of their time on digital media because of this reason
company will using social media platform. In context of PRIMARK, that is one of the
largest retail store in UK, to enhance the profits and growth they use social media
technology such as Instagram, Face book and You-tube to attract more users and people
and grab opportunities so that it will improve the behavior of the organisation.
 Demographic environment- This environment consist the factors related the population,
age ,sex, growth, religion, education level and language. It will affects the demand and
supply of the company. Therefore, large labor affects the growth and revenues of the
firm as well as use technological factor. In UK this factor is related to the positive
impact as it covers all types of age groups people work in the country. Because of this,
PRIMARK operates its business in a positive way and they use various types of human
resources that will helps in producing the different product range according to the
satisfaction of the consumers. And for this organization is constantly focusing on the
research on the market to fulfills the demand of the people and by using this data they
develop and innovate their product offerings(Malik, 2015).
 Political and legal environment- It is basically related to the legislature, judiciary and
executive functions that play a significant role in developing, directing, shaping and
controlling the business activities. In UK, due to Brexit the economic conditions is not so
stable due to which income of every individual is also affected. Because of this the
business of PRIMARK affects in a negative way as the purchaser are not purchase the
goods and services due to low income and because of this they reduces their prices and
using innovation in their products to attracts more users. Or they buy the raw material at
low cost so they will sell the goods at low price.
NATURAL ENVIRONMENT
It affects the business in a diverse way as it includes the ecological and geographical
factor which impact the climate, resources, weather or topographical factors. It is very important
to be stable of this type of environment in the non-economic components to earn more profits
and stability in the market place. This factors affects in the decisions making process of the firm.
It the organisation cannot use the resources as per the nature demand then it will not be sustain in
the market of they also create the problems in the country. Optimum utilization of resources
helps in bettering the quality of the product and its cost. To recover of for stable the business
environment they follow the proper social responsibility. In the context of PRIMARK, they use
the products which not harm the environment and they use the resources without wastage which
helps in reducing the cost of manufacturing. They also follow the proper social responsibility
towards the climate and society as they provide food and clothes as use of recycled material and
organic foods(Hicks, 2018).

SWOT ANALYSIS
PRIMARK is one of the Irish retailing companies established in UK. Manager of the firm
need to analyze the internal position of the company for this they need to apply the SWOT
Analysis that are as follows(Moncrief, Marshall and Rudd, 2015).
Strength Weaknesses
 The major strength is that it enjoys
significant sales in the last couple of
years because of low proposition in the
price that helps the company to become
a cost leader and gain the competitive
advantage. This will attracts more and
more consumers and increases the sales
and profit.
 Another strength is that it has almost
60000 employees in their stores all over
the world in which its operates.
 The major weakness is that it suffers
from the people perception about the
brand image of the company as it is
very basic brand which produce not
fashionable cloth as compare to
upcoming trends.
 Because of Brexit occur in the UK, the
sales and profits occur in a bad way.
Opportunities Threats
 They will constantly focus and
recognize the European market to open
their outlets in the other countries like
Berlin, Cologne etc.
 The another opportunity is that the
sportswear of PRIMARK is one of the
fastest growing sector.
 The major threat of the company is that
there is no presence and good image in
the current market.
 Another is that all the stores are in the
Europe and its sales depends on the
economy.
PESTLE ANALYSIS
Political factor- Political factor affects the business of the PRIMARK, as there is Brexit
occur in the UK and because of this many European countries are separate from it. This will
negatively affect the sales and profits of the firm because most of the outlets are operate in the
European countries(De Vita and Case, 2016).
Economical factor- In UK, there is adverse impact on the economic condition as it is not
stable and because of this PRIMARK faces many problems in increasing the growth and profits
in the company . Because of low income of the people they will not purchase the products of the
firm. It reduces the GDP of the nation, investments and consumptions of products that are
unfavorable for the organization.
Social factor- This factor gives the significant opportunity to the PRIMARK because in
UK people are rising with obesity according to the increasing age of an individual. This colud
provide and produce the cloth on a plus size range this will attract more and more users.
therefore, it will give employment to many people that will increase the standard of living of n
individual and it will indirectly increase the sales and profits of the firm.

Technological factor- This is the most important factor as per the current situation.
There are many people who spend their most of the time on the using of technology. In context
of primark, they use online and digital media to promote their products and sell their offerings to
the wide range of customers for which they used Amazon and Asos and many other sites
including the social media so it covers the large market. It will assists in earning high profits and
growth in the emerging market.
Legal factor- The current employment laws affecting the clothing retail industry in the
country UK. In this it is compulsory for the PRIMARK to follow the pension legislation law for
their workers so that they will work productively and enhancing the profits(Vij and Bedi, 2016).
Environmental factor- In UK, currently peoples are demanding that company using
paper packaging and recycled materials for their offerings because they are more conscious
about the environment. It will affect the PRIMARK company positively as they will use the
recyclied products and paper packaging in their goods offerings that will not harm the
environment(Gregor and Gotwald-Feja, 2018).
.
CONCLUSION
From this research it is to be concluded that contemporary business environment plays an
important role in the modern business environment as they are very dynamic in nature. It is
urged as a corporate social responsibility that is followed by the firm for their success and longer
survival in the market place. In this businesses use the resources without getting any fraud from
the competitors and earn a higher income and market growth in the current market place. In this
enterprises are more conscious about getting the knowledge of the customer preferences and the
nature of the country. On the basis of this they will make production of their products and
services. To eliminate the risk of copying the products firm needs to innovate and develops the
goods so that they will decide the price on the basis of this. It includes the economic and non-
economic factors that will affect the behavior of the organization. For this to know the cultural
environment it includes the economic and non-economic factor that affects the business activities
and the country resources on the same time. At this time firm used to make and use the resources
in a very optimum way , in this tey used the resources without any wastage and recycled
resources. Further it will includes the internal and external factor to analyze the opportunities and
threates that was present in the activities of the organization and their working condition. In this
PRIMARK manager use the optimum strategy i.e. for internal analysis they use SWOT Analysis
and for External analysis they use PESTLE Analysis. Both this factors helps in understanding the
nature and operations of the business and according to this any business enterprises uses and
make their plans to produce the goods and services. It also helps in earning the more and more
profits and also focus on the employees performance as it they not work properly then it will not
achieve the target on time. To accomplishing the goal and for convincing the customers they uses

healthy environment in their stores and uses advanced technology to attract more and more users.
For increasing the profit margins they constantly research the market in that they focus on the
consumers tastes as well as the competitors products. On the basis of their they will make their
products offerings so it will enhancing the sales and profit margins. They also use online website
Amazon and Asos so it will cover the wide market and all over the world. Research on business
environment is very useful because it helps in learning many possible outcomes which is helpful
in exploring the business enterprises(Vimrová, 2015).

REFERENCES
Books and Journal
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pp.45-55.
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IN CONTEMPORARY DECENTRALIZED CRYPTO ECONOMY AND
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