Comprehensive Business Environment Analysis: Primark and UK Economy

This report provides a comprehensive analysis of Primark's business environment, examining its organizational structure, purpose, and how it meets its objectives through stakeholder management and various strategies. The report delves into contrasting economic systems, focusing on Cuba, the United Kingdom, and China, and analyzes the impact of fiscal and monetary policies on different types of businesses. Furthermore, it explores market structures, the importance of global commercialism to UK businesses, the impact of global factors, and the effects of European Union policies. The report also includes an overview of Primark's obligations to its stakeholders and the strategies employed to fulfill these responsibilities, concluding with a summary of the key findings and references.

Business Environment
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Contents
INTRODUCTION..........................................................................................................................................................4
TASK 1...........................................................................................................................................................................4
1.1 Discuss about the purpose of Primark and identify what type of organisation is Primark..................................4
1.2 what are the various factors which are help to Primark meets the objectives......................................................5
1.3 Explain the obligation of Primark and the discuss various strategies employed to meet them.........................7
Task 2..............................................................................................................................................................................9
2.1 Contrasting land run different economical systems to attempt to assign origin impressive. Explore and explain
the type of system run in the following administrative district and understanding why you think they follow these
systems.......................................................................................................................................................................9
2.2 Head of state in UK of the Monetary resource and the Bank of England plays a important duty in control
over the economy. The way in use by them are mention to as Commercial enterprise and Monetary system
policies respectively. You are mandatory to measure the outcome of fiscal and monetary policy on the following
type of business concern..........................................................................................................................................10
2.3 Rivalry is an indispensable component in the prompt business markets . All the same enterprise are of various
magnitude and that can create biased substance. In UK another European nations Rivalry policies are used to
inspire and modify the competitory process, and to secure consumers welfare of that process..............................11
TASK 3.........................................................................................................................................................................12
3.1 Justify how valuation and yield discovery of enterprise is resolute in the following market constitution........12
3.2 Instance the manner of market unit (demand and supply) share structural consequence using a scope of
illustration (diagrams are essential)..........................................................................................................................14
3.3 Evaluate how the business and social environments behaviour of the chosen administration.........................16
TASK 4.........................................................................................................................................................................17
4.1 Talk about the importance of global commercialism to UK business concern..................................................17
4.2 Analyse the impact of global factors on UK business organisations.................................................................19
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4.3 Measure the effect of European Union policies on UK business concern.......................................................20
CONCLUSION.............................................................................................................................................................21
Conclusion....................................................................................................................................................................22
References.....................................................................................................................................................................23
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INTRODUCTION
Business environment make inclusion of all the factors related to the business activities
whether it is internal or external factor that impact organisation along with their employees,
customers, management and many more. Organisational structure as well as their nature plays a
role in their respective success and their functionality get impacted with the effect of the
monetary and fiscal policies. European policies also put impact over the overall performance of
the business organisation. There is effective impact is put over the functionality of the business
organisation with the effect of BREXIT.
TASK 1
1.1 Discuss about the purpose of Primark and identify what type of organisation is Primark
Primark is a subsidiary firm of the British Foods, they exists from the year 1969 in Ireland and
performing their activities as Penny's. Till 2000 they spread their market with the help of 100
stores within Britain and Ireland. And as the time passes they also enhance their market share as
till 2012 they hold 238 branches across Europe, UK and Ireland. They provide better innovative
values and products, so that can be help in to attain competitive advantages. (Cheeseman, 2016).
They are not manufacturers but they understand the need of customers and work together with
suppliers in order to produce goods on behalf of Primark by following their specification. It helps
in getting right cost as well as setting right price according to the right place.
Cooperative: - These are such organisations that get owned and run by the customers, employees
or residents and all of these get equal share within their earned profits. They are businesses and
perform trade activities in successful manner and doesn't work as not for profit organisation or
charities. They earn profits with their activities and share them in effective manner. In UK there
are numerous cooperative organisations are performing their activities in different retail business
over more than 4,500 locations and it engage around 4.5 million individuals in it (Cheeseman,
2016). The purpose of cooperative organisations get discussed below such as: -
 Promote the small scale business
 To make available every product to everyone.
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 To strengthen their local communities as it helps in getting connected with them.
 It helps in enhancing the customer relationships
 It enhance adequate customer services
 They work over business ethics and follow them in effective manner.
 They work together for the purpose of the betterment of the society.
 The business is performing to make mutual benefit for all (Banica & Hagiu, 2015).
1.2 what are the various factors which are help to Primark meets the objectives.
Stakeholders: Masses shows their interest in the organisational action termed as stakeholders.
All the groups segregated into two parts internal stakeholders and external stakeholders. Internal
stakeholders are inner groups of the firm and it make inclusion of worker, director, capitalist,
Committee of Directors. Whereas, Outer stakeholders are those groups that related to the
enterprise externally and it includes customers, suppliers, government authorities and so on.
(Wetherly & Otter, 2011).
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(Source: Wetherly & Otter, 2011)
It become very necessary for Primark to meet out the verifiable of their various stakeholders.
Different stakeholders having different set of objectives that need to be fulfilled by them in order
to make them satisfy. There are some of stakeholders get discussed below: -
Debtor: - Primark meet their subjective goals in impressive manner as they bring down the
tenure of profitable their debts due to which they become contented (Wetherly & Otter, 2011).
Shareholders: - Primark share adequate amount of their profits in the form of dividend with their
shareholders. With this effect their shareholders become satisfied in effective manner.
Customers: - It is very difficult for Primark to understand the need of their respective customers
but with the help of their expertise they understand it in effective manner and render them
products as per their requirement (Wetherly & Otter, 2011).
Employees: Primark gives salary hike along with bonus to their respective employees which
effectively satisfy them and motivate them in order to increase their overall performance
(whether it is in the form of production or quality or both).
Government bodies: - Primark provide various information in detail so that help them in
answering their questions or doubts in impressive way. (Gupta, 2013).
Suppliers: - Primark arrange effective level of meeting with their suppliers for the purpose of
knowing the status of their orders and help them in meeting their set objectives.
By making their stakeholders satisfy they effectively attain their market share and become
successful as there is nothing left in order to satisfy (Gupta, 2013).
1.3 Explain the obligation of Primark and the discuss various strategies employed to meet them.
As an organisation Primark attain various obligation through different segments and they need to
meet out them in effective manner. It become very important for them to perform their
responsibilities as it is essentially needed in order to attain success (Pandey, 2013). Different
segments having different responsibilities and need to be focused such as: -
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For employees their responsibilities are as follows: -
 They want to render them equal growth opportunities.
 They demand to render them adequate motivation
 They essential to make fair evaluation of the overall performance of their respective
employees.
 They necessity to render them adequate appraisal to them (Pandey, 2013).
For customers their responsibilities are as follows: -
 They need to enhance the quality of their customer services
 They need to render adequate products after understanding their respective needs.
 They need to resolve customer queries on timely basis (Pandey, 2013).
For society their responsibilities are: -
 They need to take care of their environment (they promote car pooling activities)
 They need to made charities.
 They took active participation in "Go Green" activities such as plantation, etc.
For Government their responsibilities are: -
 To pay regular taxes
 To follow all the policies implemented by government.
 To share the information related to their activities.
 Follow their rules and regulation in effective manner (Pandey, 2013).
Strategies followed by the Primark in order to meet out their responsibilities such as: -
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Pricing strategy: - Primark make use of effective pricing strategy as with the help of it they take
care of their customers need by setting adequate set of prices. For this purpose they make use
cost plus pricing method in order to set adequate selling prices.
Product strategy: - Primark make use of the adequate product that helps in meeting the demand
of their respective customers because they provide adequate quality products with low costs.
Their strategy is to focus over women wears in order to expand their market share and with the
help of their adequate feature they satisfy their made-to-order. (Pandey, 2013).
Psychological feature program: - Primark effectively implement motivational program in order
to motivate their respective employees and help them out in satisfying them in effective manner.
TASK 2
2.1 Contrasting land run different economical systems to attempt to assign origin impressive.
Explore and explain the type of system run in the following administrative district and
understanding why you think they follow these systems.
Economic system: - It is an effective scheme that utilised by government in order to allocate the
resources or goods and services. There are various factors of production get controlled under this
system such as resources, labour, capital, entrepreneurs and information resources. There are
four contrastive kind of profitable systems such as tralatitious economic system (where economy
is based over their traditions and customers in order to produce products and services),
Command Economical System, Market social science system and miscellaneous economic
system (Jacob, 2013).
Different nations have different economic system in order to allocate their overall resources in
adequate manner such as: -
a) Cuba
The Cuba Government follow Command economic system and most of their organisation owned
and run by their government. Their financial system is owned and control by the open sector and
cooperative organisation. West Indian production system follows usage value for the purpose of
meeting their societal needs and efficient enough in reducing the chances of under as well as
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over manufacture and highly intensity over producing capable amount (Mawejje & Okumu,
2016).
b) United Kingdom
UK follows the miscellaneous economic system (market and command economy) and this effect
it become one of largest and influencing economy in the whole world. They attain fast growing
economy because their majority of the functionality is controlled by the government as well as
private sector organisations also. UK attain feature of mixed economy that helps in enhancing
their overall performance related to the allocation of their available resources. Their authorities
as well as their backstage sector companies perform in collaboration in order to run the market in
impressive way and helps in go one of the directing economy in the worldwide (Mawejje &
Okumu, 2016).
c) China
China's economic system is world's 2nd big economy in entire universe and the reason behind
this is they creating from raw materials goods effectively as they are largest commodity. China's
social science system make inclusion of elements such as political orientation and capitalist
economy and their economy is founded over socialist market economy. They make optimum
utilisation of their available resources as they are the largest manufacturer as well as exporter of
different products that help in strengthening their overall economy. Most of their economy is
dominated by their state owned sectors (Mawejje & Okumu, 2016).
2.2 Head of state in UK of the Monetary resource and the Bank of England plays a important
duty in control over the economy. The way in use by them are mention to as Commercial
enterprise and Monetary system policies respectively. You are mandatory to measure the
outcome of fiscal and monetary policy on the following type of business concern.
Fiscal policy: - In this policy that followed away government for the purpose of adjusting their
expenditures as well as tax rates in order to monitor as well as control their nation's economy.
Impact of fiscal policy over: -
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Farming: - Farming contribute major part in the nation economy for its development. With the
change in the fiscal policy there is adequate impact put over the practicality of the workplace.
Majority of the rural human activity are influence direct authorities borrowings and other factors
an in this case if tax rates get increased then they have to pay high taxes over their earnings
which create adequate impact over their overall performance (Clark, 2014).
Housing: - Housing activities make inclusion of the construction of new houses, etc. for the
purpose of sales or lease or something else. With the change in the fiscal policy there are
adequate changes are noted down in their overall performance. For example fiscal policy get
changed and with this tax rates get increased so with the individual need to pay higher taxes over
the amount earned with the sale of the house. It put adverse impact over individuals performance
if tax rates get increased and vice versa (Clark, 2014).
Monetary policy: - It is that policy that followed by the monetary authority in order to put
control over their monetary supply and target over interest rate for ensuring price stability.
Impact of Monetary Policy over: -
Farming: - With the change in the monetary policy there are adequate changes are noted down
within farming activities. Government render effective grants and subsidies to their respective
individuals in order to promote farming activities. With the effect of change in monetary policy
there is effective changes in the interest rates that increase in their interest amount payment
which affect them adversely (Jurigová, 2016).
Housing: - Monetary policy put adequate impact over the housing activities as individuals
borrow funds from the bank in order to perform the activities related to housing and with the
change in the monetary policy there is effective change in interest rates. Due to increase in rates
their interest payment also get increased which impact adversely over housing activities as there
is fall in these kinds of activities (Jurigová, 2016).
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2.3 Rivalry is an indispensable component in the prompt business markets . All the same
enterprise are of various magnitude and that can create biased substance. In UK another
European nations Rivalry policies are used to inspire and modify the competitory process,
and to secure consumers welfare of that process.
Competition policy: -
These plan of action engaged in order to promote competition within the marketplace in
command to enhance the activity and brand endeavor in order to improve the efficiency. The
competition policy aim towards promoting impulsive skillfulness with the help of technical
invention among various marketplace and physique effectual cooperation among provider on the
base of their value and much more. (Dănăiaţă, et. al., 2014).
In UK and European Union here are four key pillars in context to competition policy and these
get discussed below such as: -
Antitrust and cartels: - With the effect of this pillar agreements get eliminated related to the
price-fixing and other abuses by such organisation who attain dominant market position
(Dănăiaţă, et. al., 2014).
Market liberalisation: - This pillar results into increase in competition level within private sector
for the purpose of increasing free trade practices and enhance competition level.
State aid control: - As per this pillar their respective government focused over maintaining
satisfactory level of contention inside their respective market and doesn't let out the rivalry
through marketplace (Andrejovská & Bánociová, 2014).
Merger control: - Government put adequate control over the activities including mergers and
acquisitions.
There are numerous laws are implemented over the organisations in the form of Competition Act
1998, Enterprise Act 1992, etc (Andrejovská & Bánociová, 2014).
Competition policy put adequate impact over Primark functioning as they need to render
competitive prices along with better quality products. They need to provide innovative and
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fashionable products in order to satisfy the need and demand of their respective customers. They
also enhance their customer services and quickly resolve customer queries. It is essential to
supply wide orbit of commodity as compare to the respective rival in command to modification
their marketplace assets along with number of custom-made. (Blass, 2014).
TASK 3
3.1 Justify how valuation and yield discovery of enterprise is resolute in the following market
constitution.
Marketplace is place there organisations and customers fitting in magnitude to sale & purchase
of the products. Organisation sold the products demanded by the customers and customers pay
the adequate amount demanded by the organisation against their product. now various types of
industry are there such as cold contention, monopolistic, oligopoly and duopoly (Curtis & Samy,
2014).
Perfect competition: -
Perfect competition market is that effective market type where large number of buyers and large
number of seller are present. There is no such restriction over the new entry as well as no
restriction will be put over their exit. Due to the presence of number of sellers with the same
product create a perfect competition situation where they maintain same level of prices. Market
price of the product become the major factor in order to create perfect competition situation as
none of the company increase or decrease their product prices. Demand is the desired volume of
the customers which is meet by the sellers by making adequate supply of that product. Under this
market type when the prices of product are low then it create higher demands whereas if the
prices are high then there is fall is noted down in the demand of the product. There is
unfavorable kinship between the demand and price subordinate in the industry. (Curtis & Samy,
2014). The demand line shows downward trend. On the other hand supply of the product get
decreased with the fall in the price and get increased with the increase in prices of product. There
is positive relationship between supply and price and the supply curve under this market shows
upward trend. In this market the situation where supply curve and demand curve intersects each
other that component is mention as the situational point and at that elements measure needs is
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