Business Environment Analysis of Primark: PESTLE, Leadership Style, CSR, Brexit and Covid-19 Effects

Context of business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Conducting PESTLE analysis.....................................................................................................1
Analysis and recommendation of leadership style for primark..................................................3
Changes in corporate social responsibility of primark. ..............................................................5
Effects of Brexit and Covid-19 pandemic on company's business.............................................6
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................8

INTRODUCTION
Business environment includes various factors that influence the business operations in different
ways. It consists of the process of decision making of the business organization which is being
taken by the top level management of the company. In order to achieve the desired outcomes,
every business organization is required to keep a regular check on the performance of the
company. Primark company is selected to understand the concept of business environment. It is
associated with fashion and clothing industry of the United Kingdom. It was established by
Arthur Ryan in 1969(Grail, et.al, 2020). it is situated in Dublin, Ireland. The company is a well
known recognized brand all over the globe. The report will evaluate the external and internal
components that influence the business activities of the business organisation by doing PESTLE
analysis. It also provides suggestions regarding suitable leadership style which helps in acquiring
the aim and objectives of the company. It will perform a critical evaluation of the CSR(corporate
social responsibility) in context of the Primark company. Further, it will also explains the effects
of Covid 19 and Brexit in the year 2020-2021 on the chosen business organisation that is
Primark.
MAIN BODY
Conducting PESTLE analysis.
The PESTLE analysis helps the business enterprises to identify and examine the various external
elements that affects the business activities of the organization in multiple ways. As the
companies cannot control the effects of these elements but can mitigate the risk by performing
the PESTLE analysis. These factors mainly affects the administrative functions of the company.
It is a technique that is used to proctor all those components that lays adverse effect on the
business(McConalogue, 2021). In relation of the Primark company, the administration of the
business organization can utilize this method to determine the impact of the external elements
on the commercial operations and the decision making process of the company. The analysis
done in context of Primark is as follows-
 Political factors – all the political factors that influence the functioning of a business
organization falls under this category, such as, various policies and rules of the
government, tax policies, change of power, different political decisions, etc. All these
factors negatively affect the all over development of the business enterprise. In relation to
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the Primark company, the separation of Britain from European union has affected the
growth of the economy of the country where various business organizations have lost
their connection with the companies that are situated in the member countries of the EU.
The taxation policies of the country are also revised after Brexit.
 Economical factors – the various economical changes in the country also impact the
business activities of the business organizations. Such as, GDP rate, employment ratio,
per capita income, interest rates, inflation, etc. In the context of Primark company, the
business operations are majorly affected by the pandemic that is Covid 19 and Brexit.
The monetary flow in the economy was highly affected by Covid. Due to which the
prices of the goods increased and the company was unable to meet the demands of the
consumers. There is a dis balance created in terms of currency at international level.
 Social factor- the changes in the likes and dislikes, needs and preferences of the
customers also affect the functioning of the administration of the business organisation.
The companies are unable to deal with the demands of the consumers. This directly
influence the efficiency of the business(Hamilton and Webster, 2018). In terms of the
Primark company, the supply chain was weak and because of which the company is
failing to fulfil the requirements of the customers. They are not able to figure out that
what exactly the consumers are demanding. The company is not following the latest
market trends.
 Technological factor- the companies are required to adopt the changes that has been
introduced in the field of technology. In today's era, each and every individual has access
over social media and other digitalized platforms. This has also changed the shopping
style of the customers . Now, the people are choosing the online sites for the purpose of
shopping. In relation with the Primark, the company requires a technology expert who
can manage the online site of the company and list the product on those sites so as to
enable the consumers to perform window shopping(Lea, 2019).
 Legal factor- the legal factors also affects the administration of the business in one way
or the other. Like, right and duties of the employer, healthy and safe working
environment, etc. The company must follow the rules and regulations mentioned in the
various statutes that govern the employment and business sector of the country. In
context of the Primark company, in order to avoid any kind of legal consequences, the
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