Business Environment Analysis of Primark: SWOT, PESTLE, Leadership Style, CSR

This report analyzes the impact of external factors and leadership and CSR process in the Primark Company. It includes SWOT and PESTLE analysis, comparison of different leadership styles, suitable leadership style for Primark, and corporate social responsibilities.

Context of business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Swot analysis and pestle analysis of primark..............................................................................3
Critically evaluation of Primark by changes in pestle.................................................................4
Compare and contrast the different styles of leadership..............................................................5
Suitable leadership style for primark...........................................................................................6
Corporate social responsibilities:.................................................................................................7
Reflection report: ........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The “business environment" refers to external forces, causes, and institutions that are outside the
management of the firm and have an impact on how it operates. Consumers, rivals, distributors,
the state, as well as economic, social, legal, and technical issues, are examples of these. Though
some of these variables or a factor has a direct impact on the business organization, some may
have an indirect impact. A Coronavirus shutdown has costing Primark thousands of pounds, and
the apparel company expects profits to fall by two-thirds fiscal year. This report includes the
impact of external factors and leadership and CSR process in the Primark Company.
MAIN BODY
Swot analysis and pestle analysis of primark
Swot analysis
Primark's SWOT analysis examines the company's strengths, weaknesses, opportunities, and
threats (Teoli, Sanvictores, and An, 2019). The core variables of a Primark SWOT Analysis are
strengths and weaknesses, while the exterior factors are opportunities and threats.
Strength:- Primark is a broad chain of retail stores that has empowered individuals all over the
world. The company sells clothing for both men and women. The company has stores in almost
every city in the country.
Weakness:- the company is the luxury fashion industry, fierce rivalry means restricted market
share gain.
Opportunity:- Acquiring and tie — ups can aid the company's growth.
Threats:- In comparison to other multinational players, it has a limited global footprint. When
contrasted to some of its biggest competitors, the company's brand recognition is slightly lower.
Pestel analysis
Political:- In Many hazards are inevitable for a firm, including expropriation of capital, refusal to
enable currency convertibility, and the risk of commercial agreements being repudiated(Simões,
2020).
Economic :- Although Primark is at the lower end of the global retail apparel industry, it has a
significantly more inelastic income elasticity of demand than some of its clothing competitors,
which means it might have a significant edge over some of its more priced competitors.

Social:- The current fashion trends that potential clients are seeking for are the most important
social element affecting Primark. ‘Value apparel is increasingly central to British purchasing.
Technological:- The Penneys gift card is the very first technological aspect to be examined. In
the Ireland, Primark is known as Penney. The gift card is now only accessible in Ireland, but
Primark may decide to incorporate it into its company locations at a later date.
Economical:- Primark should keep a careful eye on changes in fashion trends in the UK since
company deals with clothing products to match the taste and preferences of their consumers so
that they will stay with them.
Legal:- Company business processes uphold strong corporate governance by adhering to the UK
government's legal regulations.
Critically evaluation of Primark by changes in pestle
External factors has affected the opportunities on a large scale, as company big share of
business depends upon the outsourcing of the apparels. When the outsourcing got affected due to
social factors as lock down, it became a direct threat to the business. As the supply got affected,
companies capability to match the demand got affected too. Even the political factors played an
important role in influencing the company threats(Aslam, 2018). When the no- trade was being
imposed between the two countries in pandemic due to political decisions it affected the
inventory of the company too and the closed stores and declining sales become the cherry on top
as the threat to the company’s overall growth. But on the other hand such bad situations also
created much more opportunities for the company then the normal situations. Company tried the
new methods of online market presence and adapted the new ways to got its product deliver to
consumers. Training the employs to work online even when the stores were closed and keeping
numbers of sales on growth was company’s key factor to sustain good profits even in such hard
times. Here the technology influenced the whole growth of the company and its sales by
becoming a bridge between the company and the consumer.
When it comes to primark, company has used its strong traits very well to minimize the
that's and weaknesses affecting their opportunities (Rifaldi, Ramadhini and Usman, 2019).
Company has N numbers of employs over the seas, which has played a key role for the company
to run its operations even when the external factors were terrible. Company has used various
training methods to train its employs to get the max productivity and increase in sales even when
the external factors were affecting companies' growth. Using such methods company kept its

profits rolling even through the COVID outbreak. Companies trait of word-mouth marketing
played and important role in cost reducing. When the hard times knocked, and kept its growth on
move and helped company to negate the threats on sales. This strong factor also affected the
companies market place then compared to its rivals. When the pandemic happened company
sensed the opportunities and made its focus more on the online sales rather than opening stores
and expanding the business in new countries, which helped the company to increase its reach to
consumer by using its another strong trait called online market presence. Which helped the
company to maintain its growth, which was getting affected due to bad social factor and was
putting the threats to the sales.
Compare and contrast the different styles of leadership.
Leadership is a quality of influencing people whether they are group or an individual. In business
these quality is mainly seen in a top management, supervisor, manger of the company. Different
kind of leadership;
autocratic leaders:- This leadership style is so critical because they make their own decision,
and they do not consult with their team members or workers. They give order and expect them to
obey that. This type of leadership style is not good for the primark because in this company
people work in a team and in a positive environment but, if this leadership style will apply to the
company then it will impact the company's employees (Peker, Inandi, and Gilic, 2018). Hence, it
is not perfect for the primark.
Democratic leaders:- these type of leader is also had their own decisions, but they also involve
their team member's in that decisions. They take the whole responsibility for their goal or
mission to accomplish them in a timely manner. This type of leadership style might be applied
on a company they give value and ethics to every team member of the company. In primark there
workers are highly motivated and also according to time team leader motivates them for
accomplish their mission and goal in a timely manner.
Laissez- fair leaders:- these type of leaders have less decision power they depended on their
team. It gives workers of a company full flexibility in work. But it's also lack of influencing their
worker because of the free environment them made, and they also do not give a proper feedback.
If the team member is dedicated this leadership style is okay. But if they are not capable enough

then it can be problematic after that it cost a productivity of the company as well as lack of
control over expenses. Primark's uses this leadership style in their organization.
Transactional leaders:- these type of leaders give their employees a bonus/ reward for doing
their work proper and in timely manner, also they give their employees punishment for not doing
their work properly. This type of leader motivates their team to do work in a better way. As
primark hold this leadership to gain the goals of the company. Primark hold different kind of
leadership style as depends on the scenario (Aziz, and et.al 2020).
Transformational leaders:- these type of leader deal with a coordination of employee and
building a team in various sector of the company. In this leadership mainly focuses on
motivation to the employee and well communicate to the team for better achievement of the goal
of the company mission. This also give opportunity to every employee of the company to do
better task and gain the company goals.
In primark company there major issue is coordination and productivity in a timely manner,
budget, cost control these kinds of challenges is because of the lack of leadership. Till ow
primark does not apply the democratic leadership in their company. In company the workers
have to depend on their leaders for everything. Because of the internal factor of the leadership
issue the company investor, stakeholder whosoever is connected with company facing issue
because of the lack of leadership.
Suitable leadership style for primark
Leadership is the decision maker in every company. Leadership plays a major part in
organization for managing the organization structure like team coordination, assign work
deliberately etc. etc.
As democratic leadership is one of them for achieving the success of the organization.
Leadership also help the company to grow while the economic crisis are there (Agnihotri, and
Bhattacharya, 2020). As already discuss above about the democratic leadership in this there's a
same level of contribution in every decision because the basic meaning of democracy of kind of
free and by people for people. For primark democratic leadership is best for achieving company
goals and mission.
Some advantages of democratic leadership; this type of leadership style can apply any type of
industry in their business. And because of the freedom it gives everyone to set their point

therefore it gives diverse innovative ideas for accomplishment the tasks. This also enhances
workers motivation and encourage them to do their work in an honesty. This leadership also
emphasize the ethics and principle of everyone in the company including leader as well. For an
innovation in future company can also develop a robot for this kind of leadership style to boost
their business (Lee, and et.al 2021). Democratic leader boost their staff working capacity
because employees are happy when their opinion is matter and the leader is listened to them after
that their capacity and encouragement towards work will increase for sure and enhance the
awareness of company value.
When there's a democratic leadership apply on a company their staff work deliberately in a
motivated manner. In these leaders also share everything about company progress with their
staff, so they can work more to complete the company goals more efficiently. This also increase
job satisfaction for the employee of the company.
Corporate social responsibilities:
Organizations have to maintain social responsibilities for smooth running of the process,
it is company's promise to mange and maintain social, environmental value by their acceptable
working and policies and having purpose of causing positive societal value, completing social
responsibilities increase companies brand image (Advantage, 2020). This can be done through
various social aspects such as sponsoring or do charity, betterment of the nature, providing
money to improve society. Primark provide importance to corporate social responsibilities in
such a way for example providing employment to workers, ensuring rights and maintaining
safety precaution of their workers. The company runs various campaigns to maintain CSR such
as:
Health and safety campaigns: Primark rise awareness about health and deliver healthcare
education to their workers, they run special education classes to educate females workers of the
company (Liang and Renneboog, 2017). Safety of workers is assured by Primark, by providing
them various safety equipments, life insurance, and many other facility in case of any accident.
“HER” project run by Primark: this project helps in raising awareness about healthcare
eduction to women or female workers. Primark have major involvement in (Health Enables
Return) project, this project was started by BSR (Business Social Responsibility) a non-
government organization to contribute in betterment of nature, social and human rights with the
help over 250 individual companies (Annat, 2021). This project have helped more than 50000

females in various country, project is very powerful because less number of women staff was
chosen as health education trainers which was names as ' peer group educators'.
Fair trade: Primark maintain fair trade policies to avoid any kind of lawsuit, these policies may
include setting fair deals with suppliers, salaries and wages to employees. Fair trade also include
customer's value, an organization have to maintain fair price policies to win customers trust.
Peer group of Primark is responsible in providing health education to female workers, the result
of selecting females workers was very effective because females better understand local culture.
This helps them to improve their self-confidence and enhanced their field knowledge. Primark is
doing other social responsibilities also such as:
Less harm to environment: Primark's sustainable cotton program helps company to reduce
waste of cotton, decrease overall consumption of water, less use of cotton chemical to protect
environment (Scott, 2017). Primark manufacturing units keep in mind about no harm or little
harm to nature because of their production, the company is committed to reduce impact of
production on environment. Primark do various audit to maintain sustainability in the
environment such as health and safety audit, energy audit, waste management audit and
recycling programs. To ensure less harm to nature, Primark have its own greenhouse gas plant.
Less chemical usage: other than maintaining energy, waste management and water
consumption, the company also look after fabric mills to reduce chemical usage, not just to
maintain nature but to ensure safety of staff from such dangerous chemical.
In this way Primark maintain their value in the eyes of people by providing them their rights and
maintaining the nature.
Reflection report:
Many organizations left their employees behind during tough time when COVID hit the
world with its powerful impact, but there some organization who have ethics, stayed and helped
workers of their factory for example Primark. They have moral as well as business ethics to
manage the organization, ethics means distinguish between right and wrong and how a company
maintain rightful environment. I have examined Primark's mission statement, their corporate
aims and societal objectives to create value of the company. If an organization wants to create
value or brand image they have to focus on strength and weakness of the company try to find out
where is the lack point which result in slow success of the company whereas opportunities and
threats helps organization to stay active to catch upcoming opportunities and to be ready to face

threats. In this research I have learnt various ways or techniques to create company's image with
example of Primark, methods use by Primark's to maintain and improve their organization's
culture.
I have experience how to manage an organization with effective leadership in terms with Primark
company, leadership style adopted by them teaches a lot, for example autocratic leadership style
teach about how leaders make their own decision without consulting with their sub ordinates.
This leadership has positive as well as negative impact on my way of thinking to manage sub
ordinates, another leadership which influenced me is democratic leaderships style which helps
me to understand why decision of employees are also important, their creative thinking will help
me to solve various problem regarding decision-making. Pestel analysis of Primark help me to
understand how political factor can change or impact my organization with governments every
day changing policies whereas economic factor let me know how economic stability of the
country is important in organization's success, social behaviour of people and staff impacts
organization internally, on the other hand technology, economical and legal factors plays an
important role in organization. Points I have learnt while doing this report are:
Social responsibilities: this report tells me why social responsibilities are so important to create
value and brand image of the company, social responsibilities include betterment of the society,
betterment of nature and people, this can be achieved with identifying the problems of society
and solving them with innovative idea.
Women empowerment: by looking at Primark's HER project, I have learnt how to treat every
female in organization, HER project means health enable return, this ensures health education of
female. While doing research on HER project I have notice how Primark ensure women's safety
in context with supply country.
At last this report have various things that helps me to understand organization and how I can
make improvement accordingly.

CONCLUSION
Business and environment have a close relation they connection of both strengthening the
organization. Business environment is complex and also diverse for this company need to know
about their strength, weakness that is internal factors and the opportunities and threat that is
external factor with that company also refer their macro environmental business perspective like
pestel analysis. Business environment help to understand the company about their market
condition and where they stand. It is essential for the business to establish a good environment
and hire professional people with good skills for guidance and maintain the companies structure
and management. This report includes a Primark company business environment analysis and
their leadership style. What style company should have to apply of the leadership. And corporate
social responsibilities of the company.

REFERENCES
Books and Journals
Agnihotri, A. and Bhattacharya, S., 2020. Primark Stores Limited: Low-cost Strategy and
Sustainability Initiatives.Ivey Publishing.
Aslam, M., 2018. Current trends and issues affecting academic libraries and leadership
skills.Library Management.
Aziz, F., and et.al 2020. The influence of leadership style towards technology acceptance in
organization.International Journal of Advanced Science and Technology.29(7). pp.218-
225.
Lee, and et.al 2021. A framework of firms' business sustainability endeavours with internal and
external stakeholders through time across oriental and occidental business contexts.Asia
Pacific Journal of Marketing and Logistics.
Peker, S., Inandi, Y. and Gilic, F., 2018. The Relationship between Leadership Styles
(Autocratic and Democratic) of School Administrators and the Mobbing Teachers
Suffer.European Journal of Contemporary Education.7(1). pp.150-164.
Rifaldi, R.B., Ramadhini, N. and Usman, O., 2019. Effect of Democratic Leadership Style, Work
Environment, Cultural Organization, Motivation and Compensation to the Employees
Performance.Work Environment, Cultural Organization, Motivation and Compensation
to the Employees Performance (January 6, 2019).
Simões, E.N., 2020. A decision support system application module-for PESTLE analysis-
competitive intelligence algorithm(Doctoral dissertation).
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies.65.
Liang, H. and Renneboog, L., 2017. On the foundations of corporate social responsibility. The
Journal of Finance. 72(2) pp.853-910.
Jones, C., 2020. Corporate social responsibility during times of crisis (Doctoral dissertation,
Queensland University of Technology).
Scott, S., 2017. Labour exploitation and work-based harm. Policy Press.
McLaughlin, C., 2018. 14: Corporate Social Responsibility and Human Resource Management.
Human resource management. p.271.
Online:
Annat, L., 2021. HERproject: A perspective from Primark. [Online] Available Through;
<https://herproject.org/insights/view/herproject-a-perspective-from-primark>