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Type of Organisation and Its Purpose Assignment
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Added on 2020-01-07
Type of Organisation and Its Purpose Assignment
Added on 2020-01-07
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Business EnvironmentS t u d e n t N a m e : C a t a l i n P r e d e s cuS t u d e n t I D : 1 3 1 4 8 - RBL e c t u r e r N a m e : A d e b o y e A d e n i yiN o v e m b e r 2 0 16
TABLE OF CONTENTIntroduction................................................................................................................................3Task 1.........................................................................................................................................3Introduction...........................................................................................................................................31.1 Identify the type of organisation Primark is and discuss its purpose. Also discuss the purpose of one of these types of organisation with an example: public sector, charity, cooperative ....................31.2 Describe the extent to which Primark meets the objectives of its stakeholders.............................51.3 Explain the responsibilities of Primark as an organisation and the strategies employed to meet them......................................................................................................................................................62.1 Different countries have different economic systems. Identify and comment on the economic systems of the following countries........................................................................................................72.2 The impact of fiscal and monetary policies on the following type of businesses.............................82.3 Identify the competition policy and other regulatory mechanism that affect business organisation...............................................................................................................................................................93.1 Explain how market structures determine output decisions and pricing strategy of business in different economic systems.................................................................................................................113.2 Discuss the ways in which market forces of demand and supply shape organisational responses..............................................................................................................................................................133.3 Judge how cultural and business environment shape the organisational responses.....................144.1 Discuss the significance of international trade to UK business organisations................................154.2 Discuss the impact of global factors on UK business organisations...............................................164.3 How do EU policies affect UK companies...................................................................................18Conclusion...........................................................................................................................................19References...........................................................................................................................................202
IntroductionIn this report the external and internal factors in the business environment would beinvestigated in detail against the economic conditions surroundings inside the country andalso internationally influences for any business company which is carrying out businessoperations. The different responsibilities of the organisations and the strategies employed tomeet them would also be studied in detail. Aspects of global trade and commerce and theirsignificance would also be looked into in detail.Task 11.1 Identify the type of organisation Primark is and discuss its purpose. Also discuss the purpose of one of these types of organisation with an example: public sector, charity, cooperativePrimark is part of Associated British Foods and it was first open in 1969 in Irelandcity of Dublin, it was established by Arthur Ryan. Back then Primark was a small businessand it has only few shops in Ireland under the name of Penny’s. After the initial success inIreland the firm first opened its retail outlet in the United Kingdom in 1971. Primark has thencollaborated with Selfridges departmental stores in Manchester. In 1973 it first opened itsEnglish store in Derby and it could not use the name Penney’s as it coincided with J C Penny,so the name Primark was given. Now Primark is a big chance of shops across the Ireland, UKand Europe.Primark is a for profit organization, it has limited liability; the decision making isdivided between more people. As a limited liability organisation protection is granted to itsowners in case the business fails and they do not have full liability of the losses. As a result ifthe business is sued the plaintiff cannot attach the assets of its owners.Primark is a private sector commercial company that is in the retail business selling awide range of products from foods, to clothes, footwear and also electronic goods of dailyuse. It does not manufacture these goods but retails them to customers worldwide especiallyIreland, UK and Europe. As private sector organisation the company aims to achieve highrate of growth and profitability over a period of time and being able to grab a largersignificant portion of the market in the retail industry than its immediate competitors at home3
and abroad (Cherunilam, 2010). It undertakes all its business activities keeping in mind thismission and vision. Primark has the aims and objectives for a company to provide highquality goods and services to the customer at affordable prices to ensure a high degree ofcustomer satisfaction. It streamlines its operation in such a way that costs benefits are dulyachieved which could be passed onto customers in the form of cheaper prices than itscompetitors in the same business.Apart from that, Primark purpose in not only related to profit, but with a responsibilityto all its stakeholders which is called corporate responsibility. This greater than economicaspect of the business because it’s taking care of the people life’s, it’s about offering to thepeople something in return for their effort in every day job. For example, Primark hasdeveloped a project in Bangladesh called HER Project, through which is offering training andguidance, knowledge in many aspects of life like health or family life. Public Sector: The UK Postal Service is a good example of public sectororganisation. A public sector organisation is one which is partially funded and operated bythe central or regional government and in such organisation the government is usually thesingle largest body of shareholder. The main aim and objective of a public sector organisationis to render an essential service that is of day to day use of the public (Björklund, 2011).Hence public sector organisations are sometimes called public utility services like oil and gasand electricity. The salaries of the staff members are paid by the government and theirposition is permanent irrespective of the market conditions. The salary structure of theemployees is predetermined by the government and approved by the cabinet ministers. Theheads of such organisations are selected with the approval of the government and they areaccountable to the public for the service that they give them.Charity: The UNICEF is the children’s charity arm of the United Nations. It sellsitems like cards and gifts to support the care of underprivileged children. The proceeds fromthe sale of the goods and services are used for the education and uplift of poor children acrossthe world. It is a non profit organisation and does not consider profit making as its mission.The employees of such organisation are mainly volunteers apart from some paid officers inits rolls (Cherunilam, 2010). The main goal of such organisation is to provide humanitarianand social service to the poor and the needy.Cooperative: A cooperative is an organisation that has been established by a group ofpeople having some common interest which may be a consortium of sporting enthusiasts or a4
house owners association that serve the common interest and the purpose of its members. Forexample, the Liverpool Old Age Home is an example of a cooperative (Klapper et al.2007). Itis run by its members with the help of paid officials who are entrusted to do their service tothe organisation.1.2 Describe the extent to which Primark meets the objectives of its stakeholdersThe stakeholders of Primark are those individuals or group of individuals who havesome sort of interest or connection with the organisation. There are two types of stakeholders:internal and external. The internal stakeholders are the employees and the suppliers while the externalstakeholders are the customers, the banks and other financial institutions, the government andthe shareholders. To run the company in a satisfactory manner Primark has to meet theobjectives and mission of its various stakeholders and to keep them satisfied so that they donot disrupt the operations of businesses (Lall & Mengistae, 2005). The stakeholders aremanaged according to their power and the level of interest they hold in the company. Forexample the employees have low power and high interest simply because their livelihood isdependent on the salaries given by the company and the lower level employees do not wieldtoo much power since they are not a part of the decision making body and are not privy to thesecret information that only the top level executives and the managers know of. For thisreason the company keeps them informed about the various events happening within thecompany.The government on the other hand has low interest and high powers simply becausethe companies have to follow the law and the rules and regulations of the land if they were tooperate (Craig & Campbell, 2012). Thus the company keeps them happy by following itsinjunctions. The shareholders have high interest and high powers as the company runs ontheir money and hence they are monitored more closely.In terms of stakeholders it is very necessary for the business such as Primark to fulfiltheir objectives and expectations towards the firm. Various types of stakeholders are such ascustomers, government, employees, investors, shareholders, local community etc. Thecustomers are always tends towards the organisation that it provide high quality of goods and5
services. Further, investors expect that it gives higher return of potential investment etc.Hence, the company provides better products as well as return to them which lead to meetwith various objectives of potential stakeholders of the firm.1.3 Explain the responsibilities of Primark as an organisation and the strategiesemployed to meet them.As an organisation the company has its responsibilities towards each of itsstakeholders and the society and the community at large. For example the company isresponsible to the community where it operates and towards the citizens of thatneighbourhood. It is their duty to keep the area clean and safe and see to it that the businessprocess do not harm the environment in any manner whatsoever like over consumption ofenergy and cutting down of trees and natural habitats of wild animals (Welford, 2013).Towards the employees it has the responsibility of providing a safe and healthy workingenvironment granted to them as per the labour laws of UK and to ensure that they are paidtheir salary on time and along with all the benefits like medical leave, travel allowance andpension fund. The strategy used to meet these objectives differs depending on the type of theobjective. For example to ensure a clean environment the company must employ the latesttechnology machines and work flows which produce the least amount of pollution andprevents the wastage of energy resources like electricity and heat.It also has responsibilities towards the shareholders who must be paid dividendsaccording to the profits of the company as they have invested their money in the organisation.It is also responsible towards the government in that it follows its rules and regulations. Thestrategies employed to meet these responsibilities includes compliance to the rules andregulations of the government and ensuring that its products are safe to use by the public. Itmust also set aside a portion of its profits to pay dividends to its shareholders.The Primark Plc has different responsibilities in the organisation in order to meet withrequirements of stakeholders as well as achieve its goals and objectives. In terms of this verymain responsibility of the management is to allocate adequate resources to production processas well as allocate duties and responsibilities to every organisational member. Apart from thisto establish effective employee relation also requires at the workplace which lead to providebetter services to the customers. Hence, it can be said that when the management takesdifferent responsibilities then it will lead to meet with objectives of the Primark Plc.6
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