Business Analysis of Primark

This report provides a comprehensive analysis of Primark, focusing on its organizational structure, stakeholder objectives, market strategies, and the impact of global economic factors. It discusses various market structures, competition policies, and the significance of international trade for UK businesses. The report also evaluates how Primark meets stakeholder objectives and the responsibilities it holds towards the community and environment. Through detailed research and examples, the report highlights the complexities of operating in a global market and the importance of adapting to changing economic conditions.

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Assignment
Student Name
Student Number
Submission Date
Professor’s Name

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Table of Contents
Introduction......................................................................................................................................2
1.1 Primark organization’s type and purpose..................................................................................2
1.2 How Primark meets the objectives of its stakeholders:.............................................................3
1.3 Responsibilities of Primark and the strategies employed to achieve them:...............................3
2.1 Research and explain the type of system operated in countries and its reasons:.......................4
2.2 Impact of fiscal and monetary policy on businesses.................................................................5
2.3 Identify five competition policy and other regulatory mechanisms in the UK and evaluate
their impact selected organization:..................................................................................................5
3.1 Explain how market structures determine the pricing and output decisions of businesses.......6
3.2 Illustrate the way in which market forces shape organizational responses using a range of
examples..........................................................................................................................................8
3.3 Judge how the business and cultural environments shape the behavior of a selected
organization.....................................................................................................................................8
4.1 Significance of international trade to UK business organizations...........................................10
4.2 Analyze the impact of global factors on UK business organizations......................................12
4.3 Impact of policies of the European Union on UK business organizations..............................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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Introduction
Discussion is performed over different forms and market structure. It starts with the types of
business like private, public and voluntary companies. Organizations aligned with their goals,
objectives, mission and vision and strategies are adopted to meet those objectives. Discussion is
proceeded further to know how stakeholders’ interests are accomplished. It will also discuss
economic systems of different countries along with different market structure in which
organizations perform their activities. How global factors impact organizational structure and
business functionalities is discussed in the last section of the assignment. Positive and negative
impacts of global factors are also evaluated. To have in depth understanding of these concepts
examples of different organizations and case study of Primark is incorporated.
1.1 Primark organization’s type and purpose
Primark is a subsidiary organization of Associated British Food (ABF) group and it is private
sector organization. The company has around 238 branches in three countries, the UK, Europe
and Ireland. The organization working with the objective of increasing profit for its shareholders
and satisfy needs of its customers by providing quality and lower cost products. Company’s
operations are managed by the group of shareholders. As Primark is a private organization,
government interference is less.
Purpose of the company is to determine need of its customers and accomplish it in the best
possible way (Algesheimer and Andreas, 2005). It also intends to increase the exporting of
product in companies based on Asia and Europe. Aim of the company is to achieve economy of
scale through increase exporting. Primark is working to enhance its number of branches and
consumer base to achieve high revenue. Main base of Primark is its garment business and it
enhances the sale by providing high quality, affordable prices and on time delivery on products.
There are three different types of business on which company runs and that are public, private
and voluntary sector. Public sector business will be discussed here.

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Public Sector: The public sector organizations are worked under the control of country
government. All its operations and activities are managed by government authorities and it aimed
to serve country’s population. Main source of funding to such organization is taxes paid by
people. One of the example of public sector firm is UK’s HSBC Bank. It is public limited firm
and operates number of branches across the world. It is leading banking and financial service
organization in the UK. Public sector business has two significant part one is run under local
government and another one is under control of central government.
1.2 How Primark meets the objectives of its stakeholders:
The different stakeholders work with Primark are finance group, government, owner, employees,
suppliers and customers. Primark is bound to serve benefits to all its stakeholders and meet their
objectives. Objectives of finance group are accomplished with the help of on time payment of
debt and interest over debts. While government get benefit and fulfill its objective through tax
paid by the company which help to serve country’s population. Owner would get benefited
through increased revenue of company which can be achieved by increasing economy of scale
(Berry and Leonard, 2003). Customers are satisfied through good quality of work. Employees
objectives are accomplished through providing good salaries, rewards, incentives and good work
environment. Standard of suppliers are increased which meets their objectives by working with
company.
1.3 Responsibilities of Primark and the strategies employed to achieve
them:
Primark establishes and operates different programs and strategies to accomplish it
responsibilities towards community, environment, government, employees and customers. The
strategies employed by Primark to achieve their responsibilities are corporate social
responsibility, customer safety policy, fair reporting trend, employee safety and incorporation of
government regulation to complete company’s activities.

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The company aligns program like charity and helping minority groups etc to contribute towards
the community needs and it worked under the Corporate Social Responsibility (CSR) strategy
(Golden and Veiga, 2005). Customer Safety policy of company ensure that customers should not
get any harm due to products and services of the company. To provide health and safety to its
employees is responsibility of company and it is taken care under Health & Safety policy.
Company performs fair reporting by providing honest information about company’s current
position to its stakeholders (Huff & Kelley, 2003). Government regulations are followed by
avoiding any type of misconduct or illegal act.
2.1 Research and explain the type of system operated in countries and its
reasons:
There are different types of economic system and this section discuss incorporation of those
system in Cuba, United Kingdom and China and its reasons:
Command Economic system is operated in Cuba. The reason behind this is command of most
of the companies in Cuba is under government control. Recession and unemployment was main
problem in past due to monopolistic organizations. And hence, after that Central government
took over the command of companies after economic revolution.
Mix Economic System is adopted by the United Kingdom. In this economy government have
significant interference in company’s operations but companies have their own command and
operations. Lot of international companies and direct foreign investment is performed in UK and
hence government interference and mix economy adoption is significant (Barker, 1992).
Mix Economic System is adopted by the China. It is a fastest developing country and many
organizations and businesses are welcomed in the country and hence, to control its flow and limit
the misconduct Government interference and restrictions are crucial (Blewitt, 1992).

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2.2 Impact of fiscal and monetary policy on businesses.
Farming business is well developing and finding its foot hold in the UK. With the increase of
country’s population the problem of satisfying food needs is emerging. But, due to the less
awareness and less income in the farming business and does not having own lands discouraging
the people who want to enter in the business (Bayer, 2010). The monetary and fiscal policies
adopted by UK intend to provide benefits to the people entering into farming business through
subsidiaries, Annual investment allowance and providing relief in Agriculture property funds.
Housing business management is getting little bit tougher with the increase of population for UK
government. But, the investment and constructions of homes can be increased with the help of
builders, investors and local councils. The housing loan policies are introduced by government.
The fiscal policies introduced by government like housing loan, reducing unnecessary regulation
constructions of home and providing reasonable finances (Deming, 2010). Government aimed to
provide helping hand to people who are not able to buy home. The property tax of UK is similar
to the percentage of rent and mortgage value.
2.3 Identify five competition policy and other regulatory mechanisms in
the UK and evaluate their impact selected organization:
Fair competition is essential and it helps to increase country’s economy. The competitive
policies and regulations are developed by government to control and enhance fair competition
within country. The five policies are discussed in this section.
First competitive policy is the office of fair trading (OFT) which is intended to ensure about fair
trading in the market. This policy is aimed to prevent any type of misconduct and uncompetitive
trade (Reinartz, Werner, Jacquelyn and Kumar, 2005). The OFT competitive policy determines
the business practices working against the consumer interest.

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Another is Competition Act 1998 which prevent companies from building and operating under
any kind of illegal activities and from misusing the position in market (Delaney & Huselid,
1998). It is also formed to avoid any kind of conflicts among organizations.
The competition commission checks the impact of alliance on competition. Granting or
restricting alliance is under the control of this commission.
Next is the Enterprise Act 2002 was enacted to identify any kind of market dominance and take
action regarding the misconduct (Deming, 2010). Under this act a company director can be fired
from his or her position if found guilty of breaching competition rules.
Enterprise and regulatory reform act 2013 was enacted to enhance the use of advanced
technology which promote market efficiency and maintain effective price competition among
suppliers.
3.1 Explain how market structures determine the pricing and output
decisions of businesses
It is significant for any company to define its output and pricing decision but before that
company needs to consider its market structure. To make decision about the pricing and output
first company need to determine current position of its products and services in target market.
These decisions are relied upon the demand and supply of company’s product. Demand and
supply is obviously depends upon ability of product to satisfy customers. Market structure
incorporate the target customers, company’s ability to influence product demand, number of
industry in market and there sizes. The following are the market structure in which company
operates its business-
a) Perfect competition: In this market structure, command is in the hand of purchasers and
company has to shift the price and output of product according to its demand in the
market (Matthews and Katel, 1990). Demand will increase only when customer needs are
accomplished. In perfect competition large number of products with similar functioning
is available and hence, reducing price with same quality is essential to gain competitive
advantage. For example, the garment business like Primark, competition is high and

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hence, company has to focus on reducing price, high quality and on time delivery these
functions to get competitive advantage.
b) Monopoly: in this market structure, single trader has the capacity to control whole
market and there is no control of customer over price of its product (Blinder,
Alan,William and Gale, Colton, 2001). The company only has the pressure of providing
increased output to satisfy consumer needs and demands. Government introduces policies
to restrict monopoly of company to secure consumer interest. For example; Microsoft is
dominating the market through the services and products because there are various
services of company like Microsoft office software which are not provided by any other
company.
c) Oligopoly: In this type of market structure both company and consumers have equal
influence on pricing (Vives, 1998). Certain company has the influence to affect the price
and output decision in market. This is because no good substitute of a product or service
is available in market. It is difficult for new entrant into this market type because large
capital is required to enter plus it is difficult to match the standard of competitors. For
example, Television manufacturing company. In this case competitors cannot match each
other’s product and cannot product substitute also. The only way to achieve competitive
advantage in this market structure is to develop and implement innovative technologies.
d) Duopoly: It is kind of similar behavior and structure with monopoly market where
control of pricing is in the hands of manufacturer or seller. Prices are under the control of
seller. For example, oil and gas companies have complete control over the prices and
customers cannot control or boycott these products. Only government regulation can
control trading of such products and services. Company is mainly focused on producing
output to meet customer demands. New entry is difficult because market is already
dominated by couple of companies.

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3.2 Illustrate the way in which market forces shape organizational
responses using a range of examples
Demand and supply forces in UK: These market forces are essential to decide prices of
commodities. Demand and supply is served as economic model leading organizations to
determine prices of products and services (Morquardt and Engel, 1993). Demand is nothing but
the willingness of buyer to purchase the product and supply refer to the quantity of products
manufactured and available to enter into market with decided price. Supply can also be referred
as total output of the organizations. Sudden increase or decrease in supply and demand gives
shape to organizational responses (Gibson, 1992).
Demand and change in demand forces: Product’s utilities have an impact on the demand of
commodity. Utility refers to the usefulness of products or services and satisfactions gained after
using the products. There are various reasons contributes towards the change in demand and that
are change in commodity prices, change in customer base, changing demographics of consumers
like income level, changing taste and preferences of customers or emerging good substitute in
market (Myers and Ashkenas, 1993). Demand and supply is obviously depends upon ability of
product to satisfy customers.
3.3 Judge how the business and cultural environments shape the
behavior of a selected organization
In order to enhance the profit and growth of an organization two aspects are important and that
are cultural environment and business strategy of that organization. The organizational strategies,
policies and cultural factors differ according to the organization which has strong influence on
profitability. Values, beliefs, ethics and principles all these things are amalgamated in the
organizational culture and it’s important to run business effectively and ethically (Delaney &
Huselid, 2008). Organizational workforce and organizational structure reflect culture of
particular organization. Culture also plays important role while defining organizational mission,
vision and objectives. Organizational behavior gets shape through its culture.
This concept is evaluated by taking example of one company and it is Microsoft. The company
is getting nominated with good ranking in fortunes list of companies having healthy

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organizational culture. The company is known for supporting its developer and staff for creative
thinkings and promotes their ideas through strategies like patenting ideas with the name of
developer (Juran, 2013). New development and creative idea get appreciations from various
levels of company. It is recognized within events, programs and business magazines and
employee also get rewards and bonus for their new innovations. These strategies and incentives
help company to gain motivation and satisfaction of employees and enhance commitments
towards organization. The values of company are well communicated and adopted through
different departments. Organization takes good care of values, beliefs and diversities of their
staff and provide environment so that they could adopt and follow organizational culture.
Analysis of culture is crucial has strong impact on the working and its corporate image.
The strategies adopted by Microsoft makes it leading technology player in the industry. The
organizational culture plays important role in gaining competitive advantage over competitors.
The company is come under the monopoly market structure and hence, has good dominance over
product prices and market demands. It has the capacity to control its target market and there is
no control of customer over price of its product. The company only has the pressure of
providing increased output to satisfy consumer needs and demands. The services provided by
Microsoft like Microsoft Office versions does not have any alternative or substitute product in
market and hence, prices of the patent is under control of Microsoft. It is ruling the business and
also extending its own limit by introducing new versions of Microsoft offices.
Good culture also enhances good communication at workplace and good communication and
friendly environment guarantees good performance at workplace. It helps to enhance
communication skills of employees. In multinational organization it is important to manage
diversity and hence, it’s vital to consider national culture in human resource practices (Delery, J.
& Doty, 1996). The positive, safe and enthusiastic environment of organization encourages staff
performance and growth and profitability of the organization. The organization following its
culture, value and belief will likely to achieve its goals and objectives.

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4.1 Significance of international trade to UK business organizations
International trade referred as doing business internationally with the help of exchanging
products, services and capital globally. It enhances competition in market and enables
organizations to set competitive prices for their products and services in target market to provide
product at reasonable price to the customers. International trading opens large market for traders
as well as for customers and hence, customers can get products and services that are not
available in domestic market. It also help to acquire new and potential markets, increases
profitability and competition among organization which result in the betterment of companies
products and services (Stenzel, 2013). International trades help to generate innovative and
creative ideas which are further incorporated into the manufacturing process of companies.
UK’s business has great influence of international trading. Many companies are doing business
and initiating foreign direct investment in the country. It leads company to adopt mix economic
approach where government has equal interference on the activities of companies. The
comparative advantage concepts is emerged through international trade within UK. Companies
in the UK are also getting international platform to explore their business activities which in turn
increase profit and growth of UK’s organizations. If international trading is not available then
organizations only have the option of their local market.
It is obvious that organizations have to face intense competition in international market as
compare to their local market. Rather, there products could get large platform to explore its
quality and effectives and gain profit. International platform also introduces new innovative
strategies for companies and innovative products for consumers. Foreign country can provide
best business opportunities to multinational organization or vice versa could be true also.
Business organizations could get potential investors and partners in foreign country. UK
companies also have changes to perform alliances and mergers across the national boarder.
International trading can also enable the transfer of culture, values, belief, technology,
innovations and strategies.
Most of the companies in the world are depending on each other for resources in order to run
their business and economy. International trading is enabling companies to conduct their
business from any part of the world. Availability of huge market is generating new opportunities

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for UK companies. This is allowing the UK companies to acquire large and international market
for their innovative and new technology products and services. Most of the time company has to
depend for raw material or other resources on other country because they are not available
locally. International trade is advantageous for customers because they would get product and
services which are not available in domestic market. The current negotiation performed within
EU and US is opening free trading area for both the countries which is a big opportunity for
business organization of both countries.
Figure: Top 10 biggest importing countries
Importing and exporting both are part of international trade and it helps companies to diversify
their international links. Figure top importing countries around the world where the UK’s import
constitute around 3.7%.