Micro and Macro Environmental Factors Affecting Primark's Performance

This essay discusses the micro and macro environmental factors that have influenced Primark's performance over the past few years. It includes a detailed analysis of Primark's retail clothes sector using PESTLE and SWOT analysis. The essay also highlights the importance of understanding the cultural and social behaviours of diverse consumers while starting or expanding a firm in the global marketplace.

Essay

Introduction
Microeconomics is the study of economics at the level of a single person, a
group, or a firm. Macroeconomics, on the other hand, is the study of a country's entire
economy. Microeconomics is concerned with issues that affect both individuals and
businesses. Macroeconomics is concerned with challenges affecting nations and the
global economy. Individual investors may be better served by concentrating on
microeconomics, but macroeconomics cannot be completely ignored. When it comes
to the right function of economic study, fundamental and value investors may differ
with technical investors. Micro economic issues are more likely to affect individual
investments, but macroeconomic factors can affect entire portfolios. Primark Stores
Limited is a company based in Ireland that sells apparel. It has stores in the UK,
Ireland, and Spain, among other places. Primark stores outweigh other apparel retailer
locations in this area of responsibility, with a total of 186 stores spread over three
major regions: 125 in the UK, 34 in Ireland, and 8 in Spain. The business promotes
itself as selling trendy items at low costs.
Main body
Arthur Ryan and his associate Micaela Mitchell opened the first clothes store in
Dublin, Ireland, in 1969. Following several successes in the clothing sector, they
decided to open stores in local and regional locations due to high earnings and gross
income. It purchased several properties in various business locations throughout its
local and regional territories, resulting in increased earnings and income. Primark is
known for selling clothing at a low price point. Its success is built on obtaining
supply, producing clothing with simple designs and fabrics, and targeting young,
fashion-conscious persons aged 35 and under with simple yet high-quality clothing
and apparel. Primark's retail structure incorporates straightforward managerial
operations. Each store has its own manager who is in charge of monitoring the state
and running the business. Managers are granted the power and control to manage the
store within their area of duty because of their inherent authority. Furthermore,
assistant and deputy managers are employed to monitor and manage the store in
smaller and larger branches. Within the store, there are many subdivided departments
for which a manager is allocated, such as senior department managers and junior
department managers. Primark's retail system is based on simple management
processes. Each store has its own manager in charge of keeping track of the situation
and administering the operation. Because of their inherent authority, managers are

given the ability and control to manage the store within their area of responsibility. In
smaller and larger branches, assistant and deputy managers are also engaged to
supervise and manage the business. There are several subdivided departments within
the store, each with its own management, such as senior department managers and
junior department managers. Furthermore, Primark adheres to the belief that shared
learning and collaboration is one of the most effective strategies to accomplish long-
term good improvement with its suppliers' factories. However, as Primark meets the
challenges provided by the global business market, climate change both within and
outside its environment changes. Let's look at the ins and outs of Primark's retail
clothes sector using PESTLE and SWOT analysis. The PESTLE analysis allows us to
study the external elements affecting an organization's environment, whereas the
SWOT analysis allows us to assess an organization's internal strengths and
weaknesses as well as exterior threats and opportunities. As a result, these strategies
assist us in comprehending and highlighting good and bad variables affecting an
organization's external and internal environment, such as Primark. Different
challenges must be considered while evaluating the political, social, and economic
variables outside of Primark's surroundings. Government legislation and regulations
govern Primark's commercial operations. While adhering to the set of norms and
policies defined and enforced by the government and policy-making body, the
commercial firm should also assume social responsibility as requested by global
consciousness. Nowadays, business sectors are heavily involved in social programmes
to promote social awareness and equality, rather than producing bonds of profit and
wealth. When starting or expanding a firm in the global marketplace, it's critical to
understand the cultural and social behaviours of diverse consumers.
Furthermore, economic, environmental, legal, and technological factors all have an
impact on corporate operations. The economic stability of an area can have a
significant impact on the commercial situation of a company like Primark. On the
other hand, technology has had a significant impact on the state and development of
corporate operations and marketing strategies. It creates new trends in a fast-paced
environment, which might stifle growth and progress if organisations aren't aware of
them. We return to Primark's established management or company structure when
evaluating its strengths, flaws, opportunities, and dangers. In order to analyse its
SWOT, it is necessary to re-track the management or business structure. Primark's
strengths, in my experience with its business operations, are obtained in its

straightforward, systematic, and organised corporate structure, with adequate
authorities assigned to proper places. Furthermore, its reputation for valuing high-
quality products and services with its clients gave it additional clout in attracting new
customers. Primark, on the other hand, has flaws in its human resource
management.Despite the fact that Primark is a member of the Ethical Trade Initiative,
a study demonstrates that it places a lower emphasis on ethical issues due to a variety
of negative issues involving its business operations and transactions, such as child
labour. Various accusations were levelled against Primark, including labour
exploitation and abuse, environmental concerns, bad working conditions, and a
disregard for workers' rights. Primark has been labelled as a fashion industry with an
authoritarian system in many polls. The primacy of autocratic and rigid structures on
standard structures can be both a weakness and a threat to the company's survival.

Conclusion
In this respective report it has been concluded that it is very important to know
all the basic economics factors that can come in the study of the company and in this
essay it has all been discussed, As a result of this research, we can see that each
organisation has its unique set of external and internal issues to deal with. Using
competent management methods of analysis such as SWOT and PESTLE, we are able
to detect and analyse such difficulties. The importance of these methods is
proportional to the size of the company.

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