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

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