Purpose of Cooperative Business- Primark
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Added on 2020-01-28
Purpose of Cooperative Business- Primark
Added on 2020-01-28
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1BUSINESS ENVIRONMENT
2Table of Contents:Introduction:...............................................................................................................................2Task 1.........................................................................................................................................2LO1 Understanding the organisational purpose of businesses..................................................21.1 Identifying what kind of organisation is Primark and discussing its purpose:....................21.2 Describing the extent to which Primark meets the objectives of its different stakeholders:21.3 Explaining the responsibilities of Primark as an organisation and the strategies employedto meet them:..............................................................................................................................2LO2 Understanding the natures of national environment in which businesses operate............22.1 Explaining the types of economic systems operated in Cuba, United Kingdom and Chinato allocate resources effectively with proper reasons:...............................................................22.2 Assessing the impact of fiscal and monetary policy on farming and housing:....................22.3 Identifying competition policies and regulatory mechanisms in the UK and evaluatingtheir impact on the activity of Primark:.....................................................................................2LO3 Understanding the behaviour of organisations in their market environment.....................23.1 Explaining how pricing and output decisions of businesses are determined in perfectcompetition, monopoly, oligopoly and duopoly market structure:............................................23.2 Illustrating the ways in which market forces like demand and supply share organisationalresponses using a range of examples:........................................................................................23.3 Judging how the business and cultural environments shape the behaviour of Primark:......2LO4 Be able to assess the significance of global factors that shape national business activities....................................................................................................................................................24.1 Discussing the significance of international trade to UK business organisations:...............24.2 Analysing the impact of global factors on UK business organisations:...............................24.3 Evaluating the impact of policies of EU on UK business organisations:............................2Reference list:...........................................................................Error! Bookmark not defined.Appendices.................................................................................................................................2
3Introduction:There are many internal as well as external factors like clients and suppliers,competition, technological factors, political factors, economic factors and social factors thathave a large impact on the businesses. It has been found that Customer’s demands arechanging rapidly and several legislations have been developed by the government that mustbe followed by all the business so they must try to adopt new strategies to overcome suchissues to run their business effectively.Market trend and governmental activity play significant role to change the businessactivity. This study has focused on explaining the purpose of Primark as a cooperativebusiness and it also describes the purpose of private sectors, non-profit organisation. On theother hand, it places an emphasis on evaluating the competition policies and regulatorymechanisms and the impact of monetary and fiscal policies on farming and housing. Apartfrom that, the study also shows that the significance of international trade on UKorganisations. Figure 1: Logo of Primark(Source: Primark.com, 2016)
4Task 1LO1 Understanding the organisational purpose of businesses1.1 Identifying what kind of organisation is Primark and discussing its purpose:It has been seen that Primark is a subsidiary company of the Associated British Foodsand it runs their business with the help of their suppliers. It that case, goods are notmanufactured by Primark but the suppliers from Europe and Asia help Primark tomanufacture goods (Primark.com, 2016). Primark values for money so they deliver their goods at low cost by understanding theneeds of the customers. When Primark works with the suppliers from different countries thenseveral people from those countries get job opportunities. In such way, Primark creates jobopportunities in different countries to develop the economic state of those countries. Primarkis a private limited company. Being a private company, Primark follows the basic principles that are followed bythe private companies. The private company make all the decision by considering the size oftheir capital. The main aim of the private companies is to increases their profits by reducingall the other financial barriers. Dividends as well as investments are also involved in the principles that are taken intoconsideration by the private companies. The major objectives of the private company are tomaximise the level of profits, structuring proper organisational structure to earn huge profits,to maintain transparency in the case of financial reporting etc. Discussing the purpose of public sector, cooperative and non-profit organisation:NHS is a public-sector organisation and controlled by the state, national, provincialand local government. The purpose of the public-sector organisation is to provide necessaryservices to the public, not focusing much on earning profits. Public sector has a large impacton economic state of a country and various governmental services are provided by the public
5sectors. Kearney and Mareschal (2014, p.154) stated that public sectors focus on providingbenefits to the society. On the other hand, NHS allows the public to access health care free of charge andNHS also assesses the medical requirement of the communities living in a specific area. NHSdoes not allow the care homes to entertain any kind of discrimination within the organisation.All the people from different caste, race, gender, age group, religion and region must be ableto access medical treatment so it can be said that NHS also plays an important role to ensurethe betterment of the society. British Red Cross is a non-profit organisation, and their purpose is to serve the people,they do not focus on earning profits. The Non- Profit organisations mainly functions by thedonations that are provided by the government, individuals or other business organisation.The donations that are provided to the non- profit organisation are kept separated from thehold of taxation, to encourage the business organisations, as well as, individuals to provideservice to the public via non- profitable organisation. Government provides financial support to the non-profit organisations to proceed withtheir job. British Red Cross helps the people, who are suffering from crisis and they do notentertain any kind of discrimination. Therefore, they try to empower the communities tomobilise their power to resolve the crisis faced by them. It also provides help and support tothe people, who have badly injured due to road accident or fire.Cooperative Press can be considered as the cooperative enterprise and the aim of theenterprise is to help communities to publish the cooperative news. Nembhard (2014, p.174)stated that cooperatives can be considered as the autonomous organisation that work for thefulfilment of several needs like economic needs, cultural as well as the social needs. Non-profit community may work with the cooperatives and cooperatives run their business bytaking help from others. They must not run their business to make profit only but they try toprovide beneficial opportunities to the society. 1.2 Describing the extent to which Primark meets the objectives of its differentstakeholders:Stakeholders are the most important part of any business organisation. The growth ofthe organisation is completely depended on the growth, as well as, the satisfaction of the
6stakeholders of that company. Stakeholders are the customers of the company, the employeesworking in the organisation, the suppliers, and the directors of the organisation etc. all theindividuals, as well as, other business organisation those who are linked with the companyare considered as the stakeholders of the company.The stakeholders’ objective is to earn benefit with the growth and development of theorganisation. We can say both stakeholders and the organisation walk hand in hand in theprofit earning market. Both are directly proportional to each other; stakeholder’s satisfactionincreases the organisations’ profit and stakeholders’ dissatisfaction reduces the organisations’growth and development. There are several internal and external stakeholders are involved in the businessactivities of Primark. The internal stakeholders of Primark are the managers, employees,owners, trade union and the external stakeholders are the government, non-governmentalorganisation and communities. Carvalho and Jonker (2015, p.79) stated that the needs andinterests of different stakeholders must be different and all the needs of all stakeholders mustbe fulfilled to make them satisfied. Internal as well as the external stakeholders play an important role in operating abusiness smoothly. In that case, Primark tries to understand individual’s needs and based on itPrimark makes final decision to satisfy all the stakeholders because the stakeholders arecommitted to the organisational success. It has been found that the suppliers want to make profit to enhance the production ofthe fashion clothes. On the other hand, the customers prefer purchasing high quality productsat low cost. In that case, Primark tries to understand the changing demand of the customersand their purchasing capacity and based on it they deliver the products to them. Primark encourages the suppliers to manufacture more products maintaining highquality to make more profit. Apart from that, the shareholders want to increase share in themarket and to do so Primark tries to increase sales revenue based on the demand of thecustomers. Sendyonaet al. (2016, p.180) commented that, all the organisations must needgovernmental support while operating their business internationally or domestically.In that case, Primark is abided by several legislations developed by the government.To get governmental support Primark tries to maintain a good relation with the governmentby paying a specific amount of tax based on their sales revenue and profit. On the other hand,
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