(P16) Business Environment

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1 Identification of various types of business and their objectives........................................................3
1.2 Description of the extent to which Primark meets the objectives of its different stakeholders........4
1.3 Explanation of the responsibilities of Primark as an organization and the strategies employed to
meet them...............................................................................................................................................5
TASK 2..........................................................................................................................................................6
2.1 Explanation about different economic system and their impact on the countries............................6
2.2Implication of fiscal and monetary policies on the different business................................................7
2.3Importance of competition policy and its types.................................................................................8
TASK 3..........................................................................................................................................................8
3.1Explaination of pricing and output decisions of business is determined in the following market......8
3.2Relationship among the demand and supply of product and services...............................................9
3.3Implication of culture in the business organisation............................................................................9
TASK 4........................................................................................................................................................10
4.1Explaination of international trade on the UK business organisation...............................................10
4.2Implication of global factors on UK business organization...............................................................10
4.3 Evaluation of the policy of EU in the UK..........................................................................................11
CONCLUSION.............................................................................................................................................11

INTRODUCTION
In order to survive in the competitive environment, every business organization have to
analyses various environmental components effectively. Business environment consist with two
major parts that is internal and external environment. These two part largely influence the
business activities and function of the corporation (Cai and Yang, 2014). In the external
environment, various components are consisted such as political, legal, social economical,
technological. On the other and in the internal environment, various internal components
includes such as employees, customer, suppliers, investors etc. It is very important for business
enterprise to analyze and assess the business environment because these mentioned factors
largely affects the organization practices and function. In this project report, influence of various
environmental components on the business has been critically discussed. Beside this, impact of
fiscal and monetary policy with context of Primark has also studied in this report. Primark is a
famous cloth retail corporation based in Ireland with most of the operation in UK. This company
is a subsidiary of Associated British Foods and has its manufacturing sources from different
countries. Various economic system and its importance in the various countries has addressed in
the following report. The major objective of this project is to understand the impact of business
environment on the organizational function and activities.
TASK 1
1.1 Identification of various types of business and their objectives
Primark- Primark is a famous subsidiary corporation of the associated British foods group.
Organization was launched in 1969 in Ireland trading as penny’s. by 2000, there were over 100
stores across Britain and Ireland. By 2012 Primark had 238 branches across the UK, Ireland and
Europe. Primark has become distinctive for offering unbeatable value whilst never losing its
innovative, fashion-driven edge. Primark is world famous brand because of its innovative
product and reasonable prices (TEbert and et.al., 2014). The leading products of this cloth retail
corporation are clothes, shoes and home ware products. In order to produce innovative products
and services, Primark uses resources from India, china, Bangladesh and Turkey and by this it
provides employment opportunities to other countries. In addition to this, company effectively
fulfills its responsibility toward society and impressive contribution toward corporate social
responsibility. Cited venture have more than 68000 employees who are continuously providing
their best efforts to attain the company objective and satisfying the needs of customers. The
company sells clothes at the low cost end of the market below average prices. Along with
retailers such as Zara and H&M, Primark contributes to the contemporary fast fashion trend.

Public sector company- The public sector company concerned with rendering diverse range of
governmental services. These types of corporations are generally controlled by the government
and works for the society. The organization of the public sector can take several forms including
direct administration funded through taxation and complete outsourcing with a privately owned
corporation delivering the entire service on behalf of government. National health service is the
best example of public sector company that is offer medical services to society and administrated
by government.
Charity- A charitable organization I a kind of nonprofit organization which differs from other
types of NPO’s. This type of organization is working for the common welfare of the society.
1.2 Description of the extent to which Primark meets the objectives of its different stakeholders
For every business organization, Stakeholders play a very crucial role in order to attain
desired objective. In the absence of stakeholders company cannot survive its business activities
and function. They are those individuals who have interest in the business and they are always
wanted to connect with company. Any changes in the policies, practices, strategies, action may
largely affects the activities of stakeholder. In order to meet the objection, company has
responsibility to share each information related to business share with stakeholder and maintain
an effective relationship with them. In the context of Primark, there are various stakeholders such
as employees, government, investors, suppliers and customers. Following are major obligation of
Primark towards its stakeholders-
 Employees-Employees are most important stakeholder for Primark because in the
absence of them company cannot survive its business activities and functions. In every
field of corporation like production, operation, marketing requires an skilled and talented
personnel’s (Chow and et.al.,2012). In order to make business effective and successful,
corporation requires to maintain an effective and healthy relationship with personnel’s.
Primark have 68000 employees so it have responsibility to provide better working
condition, develop effective policies and practices, pay salary and effective incentives
and provide better welfare schemes so as they can motivate and encourage for higher
performance and productivity. By this, employees may retain in the company for long
time.
 Customers-Customer are another important stakeholder for the Primark. Cited venture is
a retail outlets so its success is largely depends upon the customer satisfaction. Customer
requires an effective and high quality products from company so it is major responsibility
of Primark is to deliver expected product and services to them. They also wants an
innovative and creative products in a reasonable prices. Therefore, Primark have
responsibility to develop such innovative product which can meet the need of customers.
 Suppliers- Primark is a retail outlet which deals with consumer products like clothes,
shoes, fashionable accessories etc (Waithaka and Ngugi, 2013). In order to produce such
products and services, company requires an effective quality of raw material and semi