Context of Business

This report provides an analysis of Primark with SWOT & PESTLE analysis. It evaluates how changes in PESTEL factors have influenced the threats & opportunities of the company. It also discusses the leadership style, corporate social responsibility, and how the company uses its strength to overcome weaknesses and threats.

CONTEXT OF
BUSINESS

Table of Contents
INTRODUCTION ..........................................................................................................................3
Illustrate SWOT & PESTLE analysis of chosen company.........................................................3
Evaluate how changes in the PESTEL factors has influenced the threats & opportunity of
company, and also illustrate how a business address their strength to negate threats and
weakness affecting their opportunities........................................................................................5
Leadership style that help the company to meet their business objectives with a focus on the
changes within business environment.........................................................................................7
Corporate social responsibility of organisation...........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is defined as the task which is concerned with the sale of product and services to
their prospective customer in order to gain the higher profits. It is the economic activity whose
primary objective is to gain more profits which can be get by owning the huge risk in its
operations. In an business organisation, there are various business strategies that helps the
organisation to complete the given task in the market by offering the wide variety of goods and
services to be further sale in the market (Shokoufeh and Türkmen, 2020). This respective report
is based on Primark, It is the Irish clothing company which is operating in UK. The company is
established by the Arthure Ryan in 1969. this respective report is based on the analysis of
internal and external factors with the evaluation of PESTLE factors which had influenced the
threats and opportunities for the particular business. It also identify the strength and weakness
with the recommendation to the company for the suitable leadership style. This also analyse the
corporate social responsibility of the given company.
Illustrate SWOT & PESTLE analysis of chosen company.
Primark is considered as the leading retailing which is operating in clothings, footwear
and accessories. The company was started in Dublin in 1969 and when they git the success they
have expanded their business to many other nation across the world.
SWOT Analysis
It is the framework which helps in analysing the strengths, weaknesses, opportunities and
threats. In relation to Primark, SWOT analysis is explained as follows:
Strength Weakness
 Primark is the premium retail chain
which is operating its business with
almost 50 people globally.
 The company is operating in around 10
nations and also having the string
presence in the Europe.
 This is having the range of apparels
that involves the foot-wear, menswear,
 Primark is not operating its business in
online mode as it does not deal in the
online shopping applications or websites.
 They are doing outsourcing of
manufacturing apparels which is leaded
to inconsistent to the quality of products.
 In the premium fashion market, they are
facing intense competition and having

accessories and many more. limited market share in context to
particular company.
Opportunities Threats
 They can increases its products range
and generate more revenue by
operating its business thorough online
mode.
 Primark can focuses in America,
Europe and Asia by introducing the
certain stores in various locations.
 They also expand its business
operations by doing partnership and
other acquisition.
 In comparison to other business firms,
they are having limited reach to global
market.
 Economic crises and the global pandemic
leads to get loose to the company and
people strict its expenses as well.
 Recalling of brand is lesser in context to
its rivals.
PESTLE analysis of Primark
It is the framework that is used to identify the impact of external factors that includes
political, economical, social, technological, legal and environmental that are impacting the
overall functionality of business. In context to Primark, these factors are illustrated below:
 Political factors- These are the factors which includes the government stability, rules and
regulation implemented by the government which may leads to impact the overall
functionality of the business. Polices framed by the government bodies focuses on the
local priorities of the company. In context to Primark, government are contributing to
analyse the overall success of downfall of the particular company. Government gradually
make change of monetary and fiscal policy and analyse how an economy react to the
particular situation.
 Economic factors- This basically analyse the various economic tends and the change in
the market are linked to the company. It includes the economic recession, inflation rate,
gross domestic products and so on. In context to Primark, this is coming out as the strong
business that helps in contributing to the GDP but also leads to impact the overall

performance due to the less disposable income of the venture. By which the consumer
spend less on clothes which are being offering by the company.
 Social factors- These are the factors which focuses on demographics change that
influence the overall perception of the people while they are purchasing. Primark always
looking for the new trends and they need to have a wide range and size of cloths so that
they can better serve the customers.
 Technological factors- Every organisation is looking for the innovation and the up
gradation in their machines and methods so that they can meet the changing demand of
their customers in the target market (Muduli and et. al., 2020). In relation to Primark,
when the company is adopting the low cost strategy by which they are not able to invest
in online shopping facilities. This also allow the rivals to overtake their firm easily.
Further they can engage in the online campaign such as Facebook so that they can better
serve the customers.
 Legal factors- This is being analysed that the company must comply with the law and
legislation that includes wages ans salary acts, taxation, insurance polices and taxation
and many more. In context to Primark, legal factors are increasing day by day and suite
all the alternation so that they can hold the cognition and apprehension of their programs.
 Environmental factors-These are the factors which is regarded to the environment and
the ecological issues such as climate change and population. In context to Primark, these
are being impacted due to the unstable weather in United Kingdom. People usually avoid
to spend the money on warm cloths in winter and so that they usually avoid to buy the
light cloths in summer season.
Evaluate how changes in the PESTEL factors has influenced the threats & opportunity of
company, and also illustrate how a business address their strength to negate threats and
weakness affecting their opportunities.
PESTLE Analysis influence the threats and opportunities within the organisation as the
environmental factors can leads to become good opportunities for the company and the major
threat of them. In relation to Primark, they influence the PESTLE components on its
opportunities and threats are undertaken below:
Political- Stability of government

 Opportunity- In UK, there is the stable government which is offering the better services
to them which is good for Primark.
 Threat- The respective company is operating in various nations and all the nation are not
having stable political government.
Economic- GDP of company
 Opportunity- Rise in the gross domestic product of UK helps the Primark to analyse
weather they have to hire more employees and how must they spend on the taxes and
more.
 Threat- In UK, recession impact the overall performance of the company which leads to
have the less disposable income of customer and they not spend huge on cloths which is
being sell by Primark.
Social- Diversified trends
 Opportunity- When the Primark adopt the emerging trends in the market by which they
can increase its customer and grab the new opportunities.
 Threat- There is huge competition as the similar products are being offered by the other
firms which are existing in the market.
Technology- Online shopping
 Opportunity- when the company is offering the online mode of shopping that increases
its customer base and they can better serve them in the large market.
 Threat- In order to provide the online shopping, Primark needs to invest huge amount of
money for investment(Harounian, 2018).
Legal- The environmental law of safety
 Opportunity- Primark is having the good relation with the government as they follows
all the rules that help them to run their business in effective manner.
 Threat- when the company is not following any of the legal rules then this become
tough for the company to operate its business.
Environmental- Recycling
 Opportunity- the company is operating its business in an ethical manner so that they
can retain in the market for long period of time.
 Threat-As the recycled products are often of poor quality which can leads to reduce the
overall brand value of the company.

How a business uses its strength to overcome from the weakness and threats affecting their
opportunities
Primark is offering the wide variety of products so that they can helps the company to
have the better considerations for attracting the customer by expanding at international level. It is
the premium retail chain which make the leading company in the global market and they can
easily face competition as well. Primark can operate in online shopping as many of the people
prefers to shop online. This helps in brand recognition in an appropriate manner. Thus the
company can use its strength to overcome the weakness from it.
Leadership style that help the company to meet their business objectives with a focus on the
changes within business environment.
Leadership is defined as the quality by which the individual influence the actions of other
employees so that they can work in an effective manner with the aim of attains their desired goal
within the organisation. Particular type of leadership shows how much the flexibility and
freedom leader are willing to delegate their employees for better working and how they are
responsible for completing the certain task with in the organisation. Moreover, There are various
leaders who expect a different level of performance, commitment and awareness to their
employees. Following are the leadership style which is offered by Goleman's leadership style
that are given below:
 Commanding leadership style- The essence of the leadership style is that it completely
based on the commands of the leader, Coercive leader always give the order without any
further explanation of any reason to their employees (Yuan, Y. and et. al., 2019). It is
clear that only leader have the authority to take the decision and no one is allowed to put
any questioning on such aspect.
 Affilitative leadership style- This majorly focuses on the employees and its relationship.
In this the leader build the better relationship to all team members and keep them happy.
This basically focuses on harmony and trust among the employees. This leadership style
focuses on the feedback, recognition and certain rewards to them based on their working.
 Democratic leadership style- this leadership style which basically appreciate the
contribution of its employees and in such a way they promote the participation of its
employees. This is useful in the diversified group in which all the team members and
employees are having different views.

 Visionary leadership style- It is also called as the authoritative approach in which the
leader set the objectives of the company to be attained and it also enable the people to
experiment, innovate and analyse the risk associated with the functions.
 Coaching leadership style- It is the leadership style in which they usually teach their
employees to develop themselves so that they become professional and lead to create the
loyalty and commitment for the same(Lu and et. al., 2021). This usually bring the strong
connection in the personal and organisational goals so that they can effectively work in
the right direction for the pre-defined goal to be achieved.
 Pacesetting leadership style- It is the leadership style that is unique as drive the
excellence. In this, the leader are very focuses to the perfection. They basically set the
higher objectives for themselves and also leads to do anything in an appropriate manner
which leads to influence the overall performance of the company.
It is being identified from the above discussion that Primark must use the democratic
leadership style so that they can allow the company to solve the critical issues and implement the
solution in an appropriate manner. This also helps them to encourage the employees to get its
involvement in the overall decision-making by giving them the power by which they put the idea
and solution in front of all. With this, respective company can leads to create the environment by
building good connection and trust among employees for the same.
Corporate social responsibility of organisation
The CSR shows how the business is operating its business in order to produce the overall
positive influence on the society and the market. It basically continue to have the commitment of
the organisation to behave in an ethical manner and leads to contribute to the economic
development. Corporate social responsibility focuses on social welfare of the company,
employees, environment and the customers that includes he complying with the certain business
ethics and rules of the business environment to protect them. In consideration to Primark,
corporate social responsibility is explained as follows:
Corporate social responsibility of Primark
Primark is operating the certain benefits by following the corporate social responsibility
at larger segment(Dumas and Beinecke, 2018). An organisation have invested its money to the
trading and environmental protection team of Primark. It is the main concern which is

responsible to apply the concern guidelines and scheme in order to facilitate the same are given
below:
 Primark analyse the concern of its client with respect to the ethical and equal treatment to
the animals which also cover the brand products also its fabric and material.
 This basically invested in the investment as it is the main goal to reduce the impact of
environment on its operations which includes the offices, shops and distributions centres.
Environmental responsibilities
Primark is giving their best in order to minimise the adverse impact of environment as
they focus on reducing the greenhouse effects and also focuses on the effective use of electricity,
water and the natural gas by which they can encourage the biodiversity through:
 They also reuse approx. 25% of previously used water before it back to the ocean.
 It is recorded that approximately £ 25 million is being invested in the management of
environmental risk.
 Despite of land filling, around 84% of waste sent for the recycling.
CONCLUSION
It is concluded from the above report that, business environment is rapidly changing an
due to which it is difficult to analyse the overall functionality of the business. For this, SWOT
analysis is being conducted which enable the company to understand the impact of internal
factors on the overall performance of the company. PESTLE analysis also helps in identify the
impact of external factors on operational activities. Moreover, the company have use democratic
leadership style, coaching leadership style and more by which an organisation can form
strategies by which they can protect their business.

REFERENCES
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