Business Environment Analysis: Primark, M&S, and Economic Factors

This report provides a comprehensive analysis of the business environment, focusing on Primark and Mark & Spencer. It begins with an introduction to the business environment and its components, including stakeholders such as customers, employees, suppliers, and government. The report then delves into the types of businesses, specifically examining Primark and Mark & Spencer, and describes their respective missions and organizational structures. It explores how these structures help the businesses fulfill their purposes. The report further investigates the influence of contrasting economic environments, such as stability and recession, on business activities. Finally, it examines the impact of political, legal, and social factors on the business activities of the selected organizations and their stakeholders, utilizing a PESTEL analysis to assess these external factors. The report concludes with a list of references used in the analysis.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Description about the types of business ................................................................................1
P2 Description about the different stakeholders.........................................................................2
TASK 2............................................................................................................................................2
P3 Describe how two businesses are organised in terms of their structures and functioning.....2
P4 Explain how the style of organisation of your chosen businesses helps them to fulfil their
purposes. ....................................................................................................................................3
Task 3...............................................................................................................................................3
P5 Describe the influence of two contrasting economic environments on business activities
within a selected organisation.....................................................................................................3
TASK 4............................................................................................................................................3
P6 Describe how political, legal and social factors are impacting upon the business activities
of your selected organisations and their stakeholders.................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Business environment consist with the internal and external components which influence
business activities and functions directly or indirectly. It can be said that it is the sum total of all
external and internal factors that largely affects business operations. Company should keep in
mind when it operates business in the existing or new market. Stakeholders are the important
component of business environment which includes customers, employees, suppliers,
management, investors, business regulations, government etc (Alshamaila, Papagiannidis, and
Li, 2013). All these mentioned factors are dynamic in nature which can change a period of time.
It can be said that business environment can be encompasses a set of conditions, situations,
economics, political, social , or institutional in which directly affect to the business operation. In
this project report, Primark business environment has been addressed. Further how company deal
with its stakeholder also studied in this report. Stakeholders are the important components of
business environment which includes customers, employees, management, business regulations,
competitors, suppliers, government, etc.
TASK 1
P1 Description about the types of business
Primark- In the context of Primark, its business opertioon can highly affected by the business
environ mental factor. Primark is an Irish clothing retailer operation in Austria, Belgium, France,
Germany, Ireland, Portugal, Spain, the Netherlands, the United kingdom, the united states and
Italy. Company is dealing with the clothing housewares cosmetics product. Further it have over
57000 employees and more than 325 physical stores across the world (Bartolomei and et.al.,
2012). Primark vision is to be the most widely spread neighbourhood centre covering the entire
country, offering retail facilities that cater to the most immediate and basic needs of its
customers, at the most cost effective price possible, in a safe comfortable and pleasant
environment manned by very professional, properly trained and friendly staff and retailer sellers.
Mark & Spencer- Mark &Spencer Plc is a major British multinational retailer headquartered in
the city of Westminster London. It is listed on the London stock exchange and is a constituent of
the FTSE 100 Index. Mark &Spencer have 852 store through out the UK as well as many
international stores 52 in India, 48 stores in Turkey, 37 in Russia, 27 in Greece,17 in Ireland.
Mark &Specer have mission is to provide new quality products in the area of cloths, food, home
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and financial services. Further it want to develop such innovative and excellent quality products
through which it can deliver effective and full satisfaction to its customers. It mission is to offer
affordable price to its customers.
P2 Description about the different stakeholders
Stakeholders are largely influenced internal and external functioning of company. These are that
bodies who has directly or indirectly influenced by corporation’s policies, practices, growth and
decline. Employees- These are people who want to interested in the company financial position.
Company should maintain effective relationship with the personnels because the entire
activities and functions of business are depends upon the employees performance.
Corporation have responsibility to disclose each and every practices, policies and other
information related to the business with employees. Customers- They are another important stakeholder for company. Primark have to
maintain effective relationship with customers by provide them effective and excellent
quality of goods and services (Butler and et.al., 2013). Company have to render effective
quality goods and services and produce such products which can provide effective
satisfaction to them. Suppliers-Suppler are those people who supply raw materials and semi finished good to
corporation. They are interested to know the financial condition of the company. Further
they also required that firm paid to them in accordance with the terms and condition of
contract.
 Government- This is the major stakeholder which primark have to considered. Company
can maintain effective relationship with government buy paying tax time to time. Further
company have to follow the rules and regulation of business operation ion the market.
Firm should obey the legislation and code of conduct which has govern by the
government.
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TASK 2
P3 Describe how two businesses are organised in terms of their structures and functioning
Organizational structure refers to the method that an organization arranges employee to increase
the productivity and achieve the organization goals. It defines the task, responsibilities, work
roles and relationship, and channel of communication. An organization structure can be plan in
many different ways depend on the organization objective, the modes in operation and business
types.
A proper organization is important to an organization. It will affect the effective of the
management. The first point is work specialization. The employee will work accordingly to their
specialization, they do not do different task in order to increase the company productivities.
Besides, the organization structure is important to evaluating employee performance.
Organization structure clear list out the responsible of the employee. In addition it is important in
achieving goals and objectives(Hamilton and Webster, 2015). Organizational structure allows for
the chain of command. Leaders are in charge of delegating tasks and projects to subordinates so
the department can achieve their goals. It also important in solve problem and implement new
strategy.
P4 Explain how the style of organisation of your chosen businesses helps them to fulfil their
purposes.
The aims of organisations depend on the type of business they are. For example, the aims of a
charity organisation will be quite different from those of a for-profit global business. A business
needs to have a clear sense of direction, which must be clearly communicated to all stakeholders.
This is the aim of the business which can then be broken down into smaller aims and
objectives(Johanson and Vahlne, 2009). Mission and values. Tesco’s talk about ‘Every Little
Helps’ a lot, but it's not just a catchphrase or marketing slogan, it represents the company as a
whole and what they stand for. For the people and their customers, it's how they run our
businesses from all over.
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Task 3
P5 Describe the influence of two contrasting economic environments on business activities
within a selected organisation.
The
economic environment is the totality of economic factors, such as employment, income, inflation
, interest rates, productivity, and wealth, that influence the buying behaviour of consumers and in
stitutions. Company faces two contrasting economic environment:
Stability: In the economy is forever changing again for good and bad and it all depends o
n if we have changed are buying habits, if we spend more we will have a strong and stable econo
my and it’s the opposite for a bad and unstable economy, if people spend less and save more the
economy will begin to full because the money is not being spent.
Recession: It is when there is a decrease in growth and this can be because of two reason
s, the first is that the consumer is cutting back on the amount on which they are spending (they m
ay be saving more instead of spending) and this will lead to the manufactures to cut back on how
much they order from suppliers and then this will result in cut backs and this will then lead to bu
siness making people redundant because they cannot afford to hire them.
TASK 4
P6 Describe how political, legal and social factors are impacting upon the business activities of
your selected organisations and their stakeholders.
The effect of global factors on UK business organisations are able to understands by using
PESTEL analysis:-
Political factors:- Primark and UK business organisations should focus on political factors like;
the level of buereacracy affairs, tariffs between UK and other countries etc. By balancing on
these factors, there is possibility for stability and growth of organisation politically.
Economical factors:- This case's situation will create high impact on UK business organisation
economically. Effect of stock market's flexibilities, World bank and WTO will also be effected
for organisation's growth.So, Primark should try to balance its business in economic way on
behalf of these factors.
4

Social factors:- It will effect on Primark's business and UK business organisation at large scale
in terms of social enviornment of business. Social factors of environment for business will be as;
increasing popularity of immigration and transferring practices and also greater concern for
minorities in societies.
Technological factors:- Due to situation, technological factors will effect on UK business
organisations as in continuous emergence of new communication technologies. There would be
innovative techniques occurs and level of global technological infrastructure will also be
effected. So, Primark and UK organisations will have to focus on these factors for expansion of
business.
Ecological factors:- These factors are related to increasing levels of air and pollution and impact
of global warming tendencies. These factors plays great role to impact on UK business
organisations during the case. Ecology of business will effect globally.
Legal factors:- Global data protection laws will effect due to case's circumstances. Thus,
organisation should increase its level of legal globalisation and accept changes in cross country
employment and health and safety laws (Caiazza and Audretsch, 2015).
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