Type of Organisation and Its Purpose Report - Primark

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The type of organisation and its purpose..............................................................................1
1.2 Extent to which Primark meets the objectives of its different stakeholders ........................2
1.3 The responsibilities of Primark as an organization and the strategies employed to meet
them ............................................................................................................................................3
TASK 2............................................................................................................................................4
2.1 Different economic systems and their allocation of resources..............................................4
2.2 Impact of Fiscal and Monetary Policy.................................................................................5
2.3 Competition policy and its impact........................................................................................5
TASK 3............................................................................................................................................6
3.1 Pricing and output decisions of businesses...........................................................................6
3.2 Market forces (demand and supply) shape organisational responses...................................7
3.3 Business and cultural environment.......................................................................................8
TASK 4............................................................................................................................................9
4.1 International trade to UK business organisations..................................................................9
4.2 Impact of global factors on UK business organisations......................................................10
4.3 impact of policies of the European union...........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment refers to the combination of all external and internal factors that
affects the operating situation of an organisation. It consists of various factors – suppliers,
customers, competitors, change in technology, government and statutory regulations, social and
economic trends. This report is on Primark which is a subsidiary of ABF (Associated British
Food) Groups launched in 1969 in Ireland. By 2012, it had 238 branches across UK, Ireland and
Europe. The company has become distinctive for offering unbeatable value due to its innovation
and fashion-driven edge. It does not produce goods itself, it understands the customers and then,
work with suppliers to produce goods as per specification (Portugal-Perez and Wilson, 2012).
The high volume of sales which is achieved through economies of scale and efficient distribution
of its products is the basis of profitability of Primark. The report focuses on identification of
different types of organisation. Further, it assesses the impact of monetary and fiscal policies on
farming and housing sector. Lastly, it explains different market structures and their impact on
determination of the pricing and output decisions of an organisation.
TASK 1
1.1 The type of organisation and its purpose
Primark is a private company engaged in the business of fashion industry which offers a
wide range of products, including clothing for newborns and children, men and women wears,
home ware, accessories, footwear, beauty products and confectionery. The company's strategyto
sell clothes at low cost end of market. It provides trendy outfits at amazingly lower prices which
attracts many customers. It owns over 290 stores (Gaskill, Van Auken and Kim, 2015). Primark
focuses to provide good quality services to its customer so as to maintain goodwill and ensure
long-term customer loyalty. The main objectives of the company are :
 To satisfy customer needs and providing quality services to them.
 To offer products and services at a comparatively lower rate to attract more customers.
 To establish healthy relationship with customers to ensure their long term loyalty.
 To adopt strategies that can maximize their profits and wealth, so it can offer high
dividends to its shareholders.
 To achieve economies of scale and efficient distribution of its products to survive in
different market conditions.
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a) Public sector : Public sector organisation are owned and operated by government to provide
services to its citizens. For example – Tesco which is a public company and is engaged in retail
business. It has diversified geographically into areas such as retailing of books, clothing,
electronics, toys, furniture, petrol and software, financial services, telecom and internet services.
The basic purpose of the organisation is to expand both its food and non-food sectors (Cavusgil,
Rammal and Rose, 2014). It aims at providing excellent services to its customers and to carry out
all the activities within and outside an organisation in a professional manner.
b) Charity : It is a type of non-profit organisation and focuses on philanthropic goals and social
well-being. For example – Cancer charity UK is a cancer research and awareness charity in the
UK. Its aim is to reduce number of deaths caused due to cancer. It conducts research into
prevention, diagnosis and treatment of the disease and also provides information and runs
campaigns to raise awareness about the disease and influencing public policy.
c) Co-operative : It is an autonomous association of people who voluntarily unite to meet their
common economic, social and cultural needs through a jointly owned and democratically
controlled organisation. One of its example is Cooperatives UK which is a network of thousands
of cooperatives with a aim to promote, develop and unite cooperatives across all sectors.
1.2 Extent to which Primark meets the objectives of its different stakeholders
Primark is a leading organisation in the fashion industry. Business depends upon a variety
of stakeholders which can be both internal like employees and external such as customers and
suppliers. Stakeholders are the people who have interest and concern in the organisation. It is the
basic duty of the company to meet the needs of its customers and other stakeholders to ensure a
good image of the organisation in their minds (Budhwar, and Debrah, 2013). The different
stakeholders of the company are as follows : Employees : Employees are the persons who are engaged by the company and who work
for the company to achieve its objectives. The employees of an organisation should feel
motivated and work effectively and efficiently towards accomplishment of organisational
goals. Primark seeks to take care of its employees and their concerns. The company
fulfils all the obligations towards its employees. It provides various benefits both
monetary as well as monetary such as incentives, job security etc. so that they feel
motivated and work effectively. It ensures to maintain healthy relationship with the
employees and provide them a good working environment. The company provides
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