Business Activity Monitoring and Performance

This assignment examines the interplay between business activity monitoring (BAM) and organizational performance within diverse economic contexts. It encourages students to analyze BAM systems' role in real-time performance management, explore various business models and their impact on organizational strategy, and critically evaluate the influence of macroeconomic factors on firm success.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Purpose of PRIMARK and other types of organizations......................................................1
1.2 Objectives of the different stakehlders..................................................................................2
1.3 Responsibilities of PRIMARK and strategies to meet them.................................................3
TASK 2 ...........................................................................................................................................4
2.1 Types of economic system operated in the economies.........................................................4
2.2 Impacts of fiscal and monetary policy on farming and housing...........................................5
2.3 Competition policy and impacts on PRIMARK..................................................................5
TASK 3............................................................................................................................................6
3.1Different market structures....................................................................................................6
3.2 Different market forces.........................................................................................................7
3.3 Impacts of business and cultural environment on the business activities.............................8
TASK 4............................................................................................................................................9
4.1 Significance of international trade to UK business...............................................................9
4.2 Impact of global factors on UK business organizations........................................................9
4.3 Impact of policies of the European Union .........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Sum-up of all the components which are Macro and Micro (internal and the external) for
influencing the organizational culture and structure and also the operational activities and
functionalities can be considered as the business environment (Enshassi, Al-Hallaq and
Mohamed, 2006). The term is a much broader concept and is a very crucial and significant
concept for a business corporation. The factors of the business environment are liable enough to
make necessary positive and negative impacts on the working activities of the entity. The
internal factors are the working staff, the strategies an the plans, the rules and the regulations,
many other procedures such as marketing and promotion, production activities etc. Whereas the
external environment comprises of the vendors or the suppliers, local and the governing bodies,
the consumers, the competitors etc. There are other related components which are essential for
the business environment such as the rules and the norms imposed by the governing authorities,
cultures and the ethics adopted by the organization for attaining the goals and objectives of the
individuals and the business entity. The below carried out report has been summarised on
PRIMARK which is a Irish clothing retailer and well established brand name in the sector of
fashionable clothing and garments. The below carried out report will be focusing the on the
various types of organizations and also how the organization will be meeting the objectives of
the stakeholders (Chavis, Klapper and Love, 2011).
TASK 1
1.1 Purpose of PRIMARK and other types of organizations
The organization is a multinational retailer of clothing which has been branded and
named as Penneys in Ireland. The company is a subsidiary for the international food, ingredients
and also of retail group Associated British Foods which has the majority of the investments from
Witting-ton Investments.
Purpose of the organization.
The main purpose of any business organization is to earn and maximize profits scales and
attain the pre-determined objectives, goals and targets. Consumer satisfaction is an another
motive or purpose of the business organization by providing them with a fashionable and trendy

sets of clothing according to their needs and demands. Moreover increasing the market share to a
global extent is also considered as one more significant purpose of the corporation.
The below mentioned are the soeme types of the organizations and purpose of them has
been explained:-
Public (NHS).
Definition: The above stated corporation NHS is a public organization. It is a public health
service unit which offers effective service range to the people of England (Cantwell, Dunning
and Lundan, 2010). It is a public funded national health system which offers free health care
services to the people residing in the country. The major aim of the unit is social welfare and
growth within the country. The organization aims at minimizing healthcare inequalities in the
country and developing a significant market growth and development in the economy.
Example: Another example of this is London Transportation.
Charity (OXFAM)
Definition: The main motive of a charity organization is to provide social welfare to the people
who are victim of any of the problems or issues. \
Example: OXFAM is a charitable organization who look after the issues of the women's rights,
problems due to scarcity of water, natural calamities an the related issue sand also for the
eduction.
Co-operative organization ( COOP UK )
Definition: Public and policy campaigns are arranged by the organization for the promoting the
co-operatives.
Example: The firm work mainly for developing, promoting and uniting the member owned
business of approx £34 billion to the economy.
1.2 Objectives of the different stakehlders
The company has operating its busuiness activities in the sector of fashionable clothing
and satisfying the consumers with the best quality of products and the services. The consumers
are consumers are one of the main components of the stakeholders and satisfying these
stakeholders for an organization is of very much essential (Hurn, 2011). Stakeholders are those
personalities who have any type of interest in the firm and are liable to the profits other related
incomes and satisfactions of the same is to be required by the corporation.

Consumers: These are to be considered as the king of the market and are also very much
important for the organization as the demand, supply and the price of the product is totally based
ion their interests, tastes and the preferences. The company can satisfy them by providing the
products and services at an affordable price with a best quality. Primark can make the products
available in the retail stores in such an arrangement so that they are easily approachable and
provides more continence to the consumers.
Suppliers : The suppliers are the personalities who provide the organization with the
supply of raw materials and the other necessary goods which are to be essentially required to
carry out the business (Halbert and Ingulli, 2014). As primark is a retailer brand of home
products and general merchandise the company need a flawless and continuous supply of the
products for the retail stores. The company should consider their demands regarding the timely
payment and orders in a proper manner. And by fulfilling these demands the company will be
satisfying these stakeholders.
Government: Governing bodies plays an important role in influencing the business
environment and the business activities and are also a significant stakeholder for the
organization. There are a number of norms and regulations which has been imposed by the local
authorities and the government and in order to meet the objectives of these the company should
implement all the necessary rules and follow the guidelines as imposed by these bodies.
1.3 Responsibilities of PRIMARK and strategies to meet them.
Each and every organization carry out business activities for fulfilling the purpose and
the determined objectives (Haigh and Brubaker, 2010). There are certain responsibilities which
are needed to be attained and fulfilled by the business corporation. The below mentioned are
some of the responsibilities and also the strategies which are implemented to meet them:-
Stakeholders are one of the most prominent factor and meeting their interest is one of the
major responsibility of the business organization. Primark has to keep in consideration of the
interest and needs of all the stakeholders such as employees. The organization has to create a
comfortable environment to make the workforce work properly and thus they will be satisfied.
Providing the best quality of the products and the services s also another responsibility of the
entity and by doing the same the company will be fulfilling the demands of the consumers. And
by doing his company will be attaining many of the objectives and targets. The company also
need to take care about the legal formalities and the responsibilities which have been imposed

and stated by the governing authorities. For carrying out smooth and flawless business activities
te firm should make necessary implications of the norms and the rules and regulations in the
organizational structure son there will be less interference of the government and also they will
be satisfied.
Apart from these basic responsibilities there are some other duties which are crucial and
significant for the organization to be fulfilled (Gottheil, 2013). Health and safety of the
employees and also all the individuals a which are related to the business activities of the firm.
The company should check and implement the necessary rules and norms regarding the safety of
the workforce. This will motivate the employees and which in turn will be proved beneficial for
the company itself. Social responsibility is an another crucial term which the company need to
consider as priority as the society comprises of many of the essential components which are
essentially required by firm. For instance Primark should carry out the business activities in such
a way that they should not effect the interest of any of the social groups or the communities and
their cultures or beliefs. They business operations should be environmental friendly and also the
packaging of the products should be of a material which are easily decomposable.
TASK 2
2.1 Types of economic system operated in the economies
Economic systems are the means or the methods by which the distribution process of de
goods, resources and the services has been done by the countries and the economies. There are
verious types of economic systems which has been adopted by the economies for carrying out
the stated activities (Fernando, 2011). The below mentioned are the some of the countries and
their types of economic systems adopted:
Cuba: The economic system of the stated country is planned economy which is also
known as command economy. The main function of this type of system is manufacturing and
distribution of goods and services and which are to be controlled by the governing bodies. In this
type there is a lot of government interference and all the decision making and the facilities are
decided by the governing authorities such as what to produce, how to produce and price of the
products. There are some advantages of the economy such as ability is developed to attain and
set the goals which are full employment and less poverty. Moreover there are some
disadvantages such as the individuals rights are dismissed of achieving the societal goals.

UK: The economy operates under a market economic system in which the most of the
market resources and the related activities are owned an controlled by the individuals. There are
clear type of transactions and exchanges are made for example the goods are exchanged against
money on voluntary basis. As UK has operated this type of economic system there are lots of
innovation encouraged as this system provides competitive edge and increases the chance for
wealth. But as there are no government interference there are more chances of environmental
damages.
China: The country operates in socialists market economy and this model of economic
system has been employed by the People's of Republic China (Dickinson, 2013). The system is
focused on the public-ally dominant sector and the region. In this system the economic activities
are planned by the central planning authorities and there is absenteeism of monopolistic
practices.
2.2 Impacts of fiscal and monetary policy on farming and housing.
Fiscal policy can be used by an economy through which a governing body make the
necessary adjustments in the tax rates, purchasing and spending levels and this is done for
monitoring and influencing the nation's economic system whereas the monetary policy is the
process by which the government or the leading authority makes a control over the money
supply which includes the interest rates or the inflation rate. The following are the impacts of the
fiscal; and monetary policy ion the housing and farming sector :-
The monetary policy of an economy is managed by the concerned policy committee.
And bank of England has a great influence on the variables such as unemployment, consumers
confidence, exchange rates and property rates. The monetary policy has a firm control over the
values of farming and housing and due to this a balance will be managed and established in the
trade. Apart from this fiscal policy also plays a great role in in the economy and has certain
influence on the farming and housing sectors (Alcidi and Gros, 2011). This policy has a direct
effect on the level of spending of the governing bodies and also the taxation policies imposed by
the authorities. There is also a balance created in the in the interest rates and also in the terms of
taxation for an industry and also the liquidity of husbandry is managed. Moreover the direct and
indirect taxes are also included under this concept and are to be decided by the government. If
there is an increment in the national income there will be a boost or enhancement in the fiscal
policy.

2.3 Competition policy and impacts on PRIMARK.
The concept is about promoting the competition in the market so as to work in a better
manner and provide improved efficiency to the individuals and also enhances the
competitiveness in the concerned economy. The below mentioned are the five competition
policies :
Deregulation: The concept is related to the methods and procedures of removing or
minimizing the state or the local regulations for market and marketing activities. This also
includes the laws and norms which makes the reduction in the monopoly power. This policy
prevents mergers and acquisitions that creates a monopolistic market (Savolainen, 2012). Tesco
is a retailer of home products and general merchandise and has adopted this competition policy.
Regulation of the competition act: Such act will provide different business organiozation
not to form any anti competitive agreement that is such an agreements which will have adverse
effects in the market. The act further describes about dominance position of an organization not
to be attained by any company while making an agreement.
Reduction in import control: Various types of costs and tariffs will be reduced in amounts
to establish a better competition in the market.
Financial support : It has been seen that EU government has made different kinds of
policies for business organizations which will help in competition prevailing in the market that is
these polices help the organization to carry competition in healthy manner which will not create
any negative impact on the marketing activities carried out by the other organizations.
TASK 3
3.1Different market structures
The below is the explanation of the different market structures:
Perfect competition: This type of market is termed as where the suppliers and buyers are
more and trading is done in the homogeneous products. There is a less government interference
in this type of markets and the barriers are also less such as technological and political. The entry
and exit through the market is free and there are very less chances of price fluctuations as the
buyers and sellers both are aware about the products (Mayfield and Taber, 2010). And this also
results in the constant price as the all the parties involved in this market are also aware about the
pricing policies strategies.

Monopoly: The market system is single handled market system and is owned or ruled by
a single seller. The manufacturer who have a trading of only a single product and which do not
have any direct substitute are involved in this type.
Advantages: In this type the producers enjoys the most benefits as they keeps high prices of the
products and a limited supply so as to maintain the demand.
Oligopoly: In this structure there are a limited d number of firms who enjoys the larger
share of majority and this concept is similar to the monopoly concept.
Advantages: The main characteristic of this type of market is the interdependence of the various
firms in the decision making. As there are groups involved in this type there are chances of
conflicts or issues as the goals cannot be same of all the group members.
Duopoly: There are two firms involved in this type of structure of market and both have
an strong and form hold on the market. The prices can be determined by the mutual
understanding and deciding on a quota.
Advantages: The production is totally based on the demand and the consumers are properly
segmented in this type of market structure (Ahmad, 2009).
3.2 Different market forces
Demand and supply are the two main components and also one of the main factors of the
market forces. Demand is the quantity of the goods which are to be required by the consumers
and supply is the quantity which has to be done to the buyers. Primark is a retailer business
corporation which deals in the fashionable clothing and is affected by the supply chain of the
demand and supply of the products. The determination of the price and equilibrium point can be
done by the organization which is to be considered as the intersecting point of the demand supply
curve. There are many impacts of demand and supply on the business entity such as the if there
is increase in the demand and the supply is low then Primark can determine a increase in the
prices of the products. Whereas if the demand is low and supply is high then the corporation is
forced to lower down its prices of the products. Thus there are many ways through which the
company's prices of the products and the services are effected by the demand and supply.

[Source- Demand and supply curve, 2017].
The above pasted is the diagram of demand and supply curve and has bee used for
explaining the equilibrium point which has been created due to he intersection of the demand
and the supply. In the above diagram D is the demand and S is the supply curve (Beck and
Demirguc-Kunt, 2006).
3.3 Impacts of business and cultural environment on the business activities
Primark is the business corporation which has many effects of the business and cultural
environments on their business activities. They operate in the retail industry and are providing
fashionable clothing and the market is spread in global markets. As the company is operating
business activities in diversified regions there is very big need for the business corporation to
consider the society and all the included factors as significant topic for the carrying out the
business. The cultural factors include al types of the technological up-gradations in the market
and also the updates which are taking place in the trade. The business entity should implement
the necessary regulations and which are meant to be accepted by the entity in a positive way
which will also help the organization in carrying out the business in a smooth way. Moreover the
business entity should also consider the environmental factors as a significant concept while
Illustration 1: Demand and supply curve

carrying out the business processes, for example the company should make use of the packaging
which are less harmful and are easily decomposable (Ayyagari, Beck and Demirguc-Kunt,
2007). The company should also make considerations of the employees as they are also a part of
the cultural environment. By satisfying them Primark will automatically enable them selves to
bring an enhancement in the quality of the products and also the productivity will be increased to
an extent.
TASK 4
4.1 Significance of international trade to UK business
The trade and exchange of the products and the services is known as the international
trade which has to be carried out between the two nations or the economies. There are a number
of advantages if the global trade which can include the proper utilisation of resources import of
the products that cannot be produced locally or in the country itself while side by side there are
some disadvantages such as the loss of jobs and more dependency on the foreign markets.
The below are some of the significance of the international trade on the UK
organizations:
International trade enables the organization to carry out the trade and also the proper
utilisation of resources will be ensured which will in turn increase the productivity and
profitability of the firm (Aterido, Hallward-Driemeier and Pagés, 2011).
As global trade makes imports possible at a large extent the companies in UK will be
benefited by the technological up-gradations and advancements. This will also improve the
efficiency of the workforce of the organization as they will be making use of the better and
improved mechanisms and methods for working in the organizations.
The trade will also enable the organizations to import the necessary materials which are
required and cannot be manufactured in the local markets or corporations and that too at a lower
costs.
The international trade will enable and creates specialization and encourages production
of different products and also the organizations will be able to produce the goods at a
comparatively low price.
4.2 Impact of global factors on UK business organizations
The below mentioned are the global factors which effect on UK business organizations:

Social factors: As the UK business organizations operates the business globally the vital
role or the duty of the corporation is to consider and design the business plans and strategies on
the basis of the societies and the cultures of the different regions (Gardner and Laskin, 2011).
This constitutes the the languages, life patterns, religion etc. which are to be considered as
significant for a successful business management. Social factors provides the organization a deep
understanding about the tastes, preferences and behaviours of the consumers residing in the
specific region.
Legal factors: The main components of this factor are the laws, rules and the regulations
which are to be considered to be a significant part of the business activities. They are also liable
to bring out a change in the business strategies. For carrying out a profitable process within an
organization they need ton have a proper follow-up on the guidelines which have been imposed
by the governing bodies of the economy.
Political factors: If an entity is carrying business activities in different regions then they
have to cope-up with both the political authorities of the regions. Business activities are greatly
influenced by the political factors Also the spending habits of the consumers is effected by the
political factors and for this the business corporations will have to take into account the stability
of the political environment (Wild, Wild and Han, 2014).
Technological factors: These are the most effecting the factors which have an influence
the business strategies as this factor provides the chance to develop and build the up-gradations
in the working and the processes.
4.3 Impact of policies of the European Union
The policies which have been build and imposed by the governing bodies have directly
impact on the business activities and also influence their operations. The money supply will be
infected by the monetary policies which also effects the interest rates, cash reserve ratio etc. And
whereas the fiscal policy refers to the collection of the revenue and spending by the governing
bodies and also the tax rates are also influenced which are in the economy. The above stated
policies have a great impact on the functioning of the businesses. If there is an increase in the tax
rates then the business corporations will be paying more as compared to earlier.
The below mentioned are some of the policies which are interrelated with EU:-
KOYOTO protocol: It has to be considered as the prime policy which has been adopted
by the EU and in this an agreement the companies have to follow the trade activities as per

mentioned (Moutinho, 2011). The main focus of this concept is on the health and safety of the
employees within the organization. There should be necessary implementations of the rules and
policies and also safety measures for the workforce within the working environment so as to
ensure a safe and secure working,. The organization should ensure a comfortable environment
for the employees so as they feel safe and gets motivated to work in the organization. And also
the focus is given on the protection of the climate from the adverse effects which can be caused
by the business corporations.
Global financial stability: The main purpose of the policy is to manage and maintain the
financial stability in the various economies in which the business corporations is operating its
business activities. And by this there will be a reduction in the problem of financial crisis in the
country.
Inflation policy: There are a number of adverse impacts of the inflation policy and which
has to be compulsory adopted by the by each and every organization in the economy.
Environmental policies: There has been implementation of various policies fo the
protection of the environment and these are to be followed by the by each and every business
organizations of EU. But these policies have some adverse effects over the growth of the busines
organizations (Dollinger, 2008).
CONCLUSION
From the above carried out analysis it has been concluded that business environment is
very much essential for every organization. It has been further described that there are many
policies present and implemented by the government for business organization for regulation in a
careful manner for instance a brief description of fiscal and monetary policy is being portrayed in
the above description. It has been further explained in the project that the competition is the key
element doe any business organization for constituting an environment having various buying
and selling activities. The project has made remarkable representation in explaining various
aspects of business environment and the importance of the same.

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