Business Environment Report: Primark, Economic Systems, and Policies

This report provides a comprehensive analysis of Primark's business environment, examining its purpose, stakeholder objectives, and organizational responsibilities. It delves into the economic systems of Cuba, the United Kingdom, and China, assessing the impact of fiscal and monetary policies on farming and housing businesses. The report further explores competition and regulatory policies in the UK, the significance of international trade, and the influence of global factors on UK business organizations. It also evaluates the impact of European Union policies on UK businesses, offering a detailed overview of the company's strategies and responsibilities within a global context.

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Business Environment
Contents
Task1...........................................................................................................................................................3
1.1 Identification of organisation Primark and discussion of its purpose................................................3
1.2 Description of the extension to which Primark meets the objectives of its different stakeholders...5
1.3 Explanation of the responsibilities of Primark as an organisation and the strategies employed to
meet them...............................................................................................................................................6
Task2...........................................................................................................................................................8
2.1 Research and explanation of the type of economic system operated in the following countries.....8
2.2 Assessment of the impact of fiscal and monetary policy on the following type of businesses..........9
2.3 Competition policy and other Regulatory policies in the United Kingdom......................................10
Task 3 – Essay..........................................................................................................................................12
3.1 Explain how pricing and output decision of business is determined in the following market
structures..............................................................................................................................................12
3.2..........................................................................................................................................................13
3.3 judge how the business and cultural environment shape the behavior of a selected company.....15
Task4.........................................................................................................................................................18
4.1 The significance of international trade to UK business organizations..............................................18
4.2 Analysis of the impact of global factors on UK business organization.............................................18
4.3 evaluation of the impact of the policies of the European Union on UK business organization.......20
References.............................................................................................................................................23
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Task1
1.1 Identification of organisation Primark and discussion of its purpose
Primark is the company which is the supplementary company, linked with the Associated British
Foods Group or ABF Group. In the year of 1969, the company was established in Ireland which
was trading by the name Penny's. Primark which is an organisation of private sector trades on
general accessories(Berry, 2004). The company, Primark has been expanded itself today that by
the year of 2000, the company has enlarged its wings at Britain and Ireland over hundred stores.
By the year of 2012, the company has enlarged its branches all over Ireland, United Kingdom
and Europe; the number of branches they have got still is more than 238. The company does not
go through so much expense which returns to them as a portion of the profit. The offerings of
Primark become so evaluative that consumers of this company never lose such interests upon it.
Besides this, the company has the most inventive factors which may appreciate by the
consumers. As Primark has got its own retailing business, the company does not make their
production house. The company makes dealings with its suppliers and the productions of the
materials are named as the product of Primark, this is what the retailing business deal with. The
products supplied by the company are specifically coined as of Primark. By this total procedure,
Primark helps itself to work with proper goods at the right place at the market with proper prices.
The profitability of Primark enormously depends upon the sales' sheer volume. Beside all these
things Primark maintains is the value or price-oriented job by the term of very low cost so that
the company runs on profit; the costing price of production get lower so that lowering of price
does not get effective to the company as well(Bubonia et al., 2012). All these protocols and
decorum are followed to make a record upon the working rate, economic valuation of the
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company and the distribution which has done efficiently. Primark works internationally, its most
of the business lie upon Europe and Asia; the key resources of suppliers the company gets from
Turkey, China, Bangladesh and India. These are those main countries from Primark used to get
its suppliers and resources. For providing better quality products, Primark uses to consult with
worldwide international experts, international organisations and surrounded partners too. As the
company manufactures their products in these countries, the countries get the help of having the
job at these manufacturing sites(Carlsson, 2014). Thus Primark helps their consumers and
employees in many ways and ultimately gets maximum profits for itself though it never deprives
the customers of getting their benefits as well.
Identification and discussion of the purpose of the following categories:
a) The public sector
Public sector organisations help the customers and consumers by the devotion of working
towards them. These organisations must have to follow specific rules, legislation of
government as well as some other code of conducts. The organisations have got so many
differentiated sectors where are different managements to follow up. Such sectors are
differentiated as Human Resource Management, Market Development wing, Market
Research management, production development sectors and much more(King and
Cruickshank, 2010). Such organisations are mean to serve the people by many says;
public sector organisation may be a part of the government which means the public sector
organisations are here to serve the public which may sometimes without benefits and
profits.
b) Charity
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The organisations which work over charitable programs such as the child labour
movement or some orphanage are meant to say as a Charity organisation. Charitable
organisations are more similar to the non-profitable sectors; in most of the cases, these
organisations do not follow with the workings upon profitability only. Some
nongovernmental organisations also work with these kinds of job specifications. A
charitable organisation is more over a non-profitable organisation or in some cases
government organisations too. The charity institutes are based on the educational sectors,
public welfares, religious, and it may work in different sectors, or it may be a total
foundation of a charitable organisation(Kramar, 2013).
c) Cooperative
Cooperative organisations are something different where the people work for their
organisation as well for themselves. At these kinds of a company, the amount of profit
which may gain through heavy work is distributed among the employees rather the
employees run the organisation. Cooperative units are a different kind of business
organisation which makes money using their services, gain profit up to a specified
saturation level and earn profits. There are neither such authorities nor the organisations
work for some other foundations. There are such basic points at these types of sectors that
the employees work here for themselves and gain the profit on their own(Meijerink,
Bondarouk and Lepak, 2015).
1.2 Description of the extension to which Primark meets the objectives of its different
stakeholders
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The most important thing for the Primark at their business is that the company runs the business
in a proper ethical way so that there are different stakeholders and suppliers of the organisation
through the whole world(Tinari and Betz, 2013). There are many more stakeholders, and Primark
follows a definite way to continue the business with them; thus Primark uses a Community
Engagement of program at India. Primark uses different channels to communicate with their
various stakeholders. As the ethical business runs the company smoothly also follow some other
criteria to maintain the business relationships with their stakeholders. This initiative has taken by
the organisation since 2006. It is a long chain of the non-governmental organisation, trade
unions, and over 60 organisations. Primark visited the movement regarding Better Work
Partnership since 2010, and it has made the organisation with a new banner. Use of civil society
for evaluating the work functioning. Maintaining a trade union which always helps the
organisation to be beneficial for the company. Primark works with their stakeholders in different
ways so that it maintains the reputation of the company and serves it by its way(Vuorinen, 2009).
1.3 Explanation of the responsibilities of Primark as an organisation and the strategies employed
to meet them
The reputation of the organisation, Primark comes by the way it serves its customers and
consumers by its way, but it has to be accepted that the company maintains the quality of its
products and also with that maintain a good relationship with its consumers as well. Primark is
always supplied high quality of materials as well it always makes an observation over its
factories that these factories should have to be eco-friendly so that the production of the
company also becomes of high and good qualities. The costing prices of the products’ raw
materials are lowered by Primark so that they can offer products to its customers at a very low
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price. The organisation puts an effort to set a low price at an exchange of their products, but it is
not that they leave low wages to their employers' pocket. Primark does not ignore their workers
as they are the ultimate provider of the products which make business internationally so that they
take an enormous care of their employers. As well as these the organisation also have made
perfect relations with its workers and get them proper allowances, their children proper
educations, health issues are also be solved by Primark. For the sake of strategy, Primark always
follows the term of the good relationship that may be with the employees or the stakeholders.
Thus all these stuff help the company to reach up to a level of high reputation in the market by its
evaluating strategies and responsibilities(Yaffe, 2015).
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Task2
2.1 Research and explanation of the type of economic system operated in the following countries
a) Cuba
The economy of Cuba is something which is a very orthodox kind of economy. It
follows the communal economy to run their financial strategies. Corruption has got a
serious problem here. There is no movement occurs freedom, it is completely
prohibited. Private sectors are limited at Cuba, efficiency here still poor. The
economy of Cuba is highly contacted towards and elite or high-level politics or
military economy so that it can be said the economy is not so much dynamic as well.
As it has been said that the economy of Cuba is also stated as Communist Economy,
the reserved strategies are also followed there; such as foreign trade investment is
totally suppressed here.
b) United Kingdom
The United Kingdom has got one of the largest economies around the world. It
follows much disciplined and much dynamic strategies for its financial stability. By
the time of 2015, the United Kingdom has ranked in between one to ten for exporting
and importing in both ways. The economy of United Kingdom gets the tag of Mixed
Economy; it is followed by this way. It is moving to the upward path which goes for
the United Kingdom. They have a strong administration towards its economy, rules
and regulations, law and orders are very disciplined and maintained. The United
Kingdom gets its work upon Fiscal and Regulatory methods of continuing its
economical strength. The regulatory frameworks follow the business with the basis of
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proper legislation as well as Fiscal performs here too. The business of housing and
farming get the high rising at their business by the mean of these different strategies
of an economy.
c) China
China has got the second largest economy around the world so that it has been
developed with many ways through the years. It is run through the strategy of social
market economy. At a certain period, China had got the fastest growing economy.
China's historical factors had given it this vulnerable financial system. China exports
its products all over the world so that it has a big market all over it. The economy of
China is Orthodox too, but it is maintained in a disciplined way. The type that is
named as Transaction Economy defines the economy of China in a whole. As it has
got one of the largest economies in the earth, the economy of China is much
expanded and involved in variant trades.
2.2 Assessment of the impact of fiscal and monetary policy on the following type of businesses
a) Farming
The farming or the agriculture technology at the United Kingdom is much advanced
as well as it is also following much-upgraded technology. Fiscal policy is nothing but
the sister policy of Monitory policy; what monetary policy do is supplying the fund
through the influence of banks and the policy of fiscal is to maintain the taxation
rates and other decorum for put a stability upon the economy of United Kingdom. By
the case of farming, the government supplies a lot of expenses through the monitory
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policy and to support the farmers they use the fiscal policy as they can serve them too
by returning the benefits of the job they work on.
b) Housing
As the fiscal and monetary policies are much stronger by the economical balance of
United Kingdom, the housing or constructions' business get a huge benefit by this. As
here have so many trade units, financial growth of Britain is much stronger. In
housing sector, the United Kingdom puts have played with its ultimate and lasting
effort to make it more resulting and financial support as well. The government has set
for the monitory policy by the funding from some banks, and the business of housing
serves the government as well. By this procedure of fiscal policy, it also gets a strong
benefit by the business of housing.
2.3 Competition policy and other Regulatory policies in the United Kingdom
Five competition policy in the United Kingdom
1. The United Kingdom has got the project of Merger Control aim which also protects to
combine diminutive organisations as the competition there at rest leftovers.
2. There is a procedure of market investigating which was established after Second World
War and follows up to spot ended the market that happens like an unethical integration of
companies.
3. The United Kingdom which has been included to the Economical Regulatory systems
which arise at the corresponding path or more particularly, an alternative level of policy
where Monopolistic business is also run through its way.
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4. It is totally illegal of having predation and price discrimination in the business strategies
at the United Kingdom; complexities should be avoided.
5. Finally, the rules of Competition may not be distorted, warped, customised, and it is
tightly offensive.
Other Regulatory policies in the United Kingdom
There are many other Regulatory policies which run the financial stability of United Kingdom
and put a huge growth to its economic condition. Craving up at the market is termed as it
signifies that companies can split up at market and will not compete at variant sections in there.
Thus the United Kingdom gets a strong condition upon the economic state which has turned to a
smooth uprising for its country.
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Task 3 – Essay
3.1 Explain how pricing and output decision of business is determined in the following market
structures
The market structure is consists of different types of elements, inter-connected with the
behavioral approach of individuals. Many more renowned companies are already ruling the
contemporary market. On the other side, each business sector like retail industry includes
demand and supply chain management. Management of an organization is concerned with the
requirements of their customers. In others words organization meets the customers’ needs and all
the demands. Supply chain management helps the organization (retail industry) to fulfill the
essential needs of a customer. The price estimation and decision making process of an
organization are able to influence the different types of market structure. Those types are-
Perfect competition: lots of reports suggested that the comparative products are offered by the
market through the sellers. All the association do the same. There are no idea of strength is
considerable. For an example- in the horticulture firms products are difficult to be separated. The
opportunities of the organization are free.
Monopoly: this is a type of market where the single dealer has an extensive number of
purchasers. Passages of the different organization confined by the beat players. Beat players
influence the industry by separating products. These organization cope different strategies to beat
their rivals.
Oligopoly: this type of market is made up of few organizations, rule the industry. Tesco, Marks
& spencer, ASDA, Sainsbury gives same type of products in the retail industry.
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