Business Environment Report: PRIMARK Analysis and Evaluation

This report offers a comprehensive analysis of PRIMARK's business environment. It begins with an introduction to the business environment and its impact on organizational operations, followed by an examination of PRIMARK, a private sector organization operating in the retail industry. The report delves into different types and purposes of organizations, including public, private, and voluntary sectors, along with their legal structures, with a focus on PRIMARK's private limited company structure. It explores the size and scope of various organizations like PRIMARK and BBC. The report then investigates the relationship between organizational functions and objectives, followed by an identification of the macro environment's positive and negative impacts on PRIMARK, supported by specific examples. Internal and external analyses, including SWOT, VRIO, and TOWS analyses, are conducted to identify PRIMARK's strengths and weaknesses and how they relate to external macro factors. The report concludes with references to the sources used.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations; public, private and voluntary sectors and
legal structures........................................................................................................................1
Differences between organisations for profit and not for profit, and non-government
organisations (NGOs).............................................................................................................2
P2 Explain the size and scope of a range of different types of organisations........................3
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................7
TASK 3............................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................11
TASK 4..........................................................................................................................................13
P6 Explain how strengths and weaknesses interrelate with external macro factors.............13
VRIO of PRIMARK ............................................................................................................17
TOWS Analysis....................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Business environment acts as an most essentials element, as this include different types of
factors with the understanding of which organisation can effectively able to operate their
business functions (Hilton and Platt, 2013). Within business environment there are different
types of internal as well as external forces that further drive functioning of business in a negative
and positive manner. It is essential for business organisation to effectively understand these
factors in order to conduct business operations in a well defined manner. Present report has been
conducted on PRIMARK. Company was founded in the year 1969 and operate their functions in
retail industry. Clothing, Cosmetics and housewares are main products of company. Size as well
as scope of voluntary, public and private organisation has been covered in this report with
SWOT analysis. Lastly report include relationship among organisational functions within
organisational structure.
TASK 1
P1 Different types and purposes of organisations; public, private and voluntary sectors and legal
structures
There are numerous range of organisations those who perform their operations in best
effective manner with an aim to gain high rate of profitability. All these organisations operate
their functions with some certain roles and responsibilities as to offer qualitative products and
services to customers. Main motive behind this is to serve customers with best and earn adequate
profits. It has been determined that every organisation perform their operations in different legal
structures. There are classification of these organisations are defined below:
Private sector
Organisations those who perform their operation in private sector have main motive
which is to effectively gain large base of profitability. These organisations are duly managed by
firms, individuals and other legal authority. In addition with this, sole traders are also considered
as private sector organisations as they perform their business by own. Organisations within this
sector effectively conduct their functions with an aim to serve customers in best effective manner
and ensure high rate of profitability. Funds have been mainly gather by these private sector
organisations through business entities, investors, bank loan, financial institutions etc.
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For example PRIMARK operate their functioning in private sector as they conduct their
roles and responsibilities with having their own working structure.
Legal Structure: Legal Structure of private organisation includes:
Sole proprietorship:
In this a single individual undertake their business and are sole responsible for the loss
and profit. Hairdressers, Newsagents and market traders are some of the examples of sole
proprietorship.
Partnership:
Partnership is mainly defined as an association within which two or more than
individuals come together for a common purpose. In this an agreement is signed which is also
termed as deed of partnership.
Legal Structure of PRIMARK:
PRIMARK operate their functioning as private limited company. This significantly
indicates that shareholders of company is having limited liability. In addition to this, it has been
identified that entity incorporated under laws of Scotland, England and Wales.
Advantage of legal structure for company
This has been identified that one of the most prominent advantage of legal structure for
PRIMARK is that it allow entity to indulge in easy tax preparation. In addition to this, by
operating their functioning in private limited company, PRIMARK can significantly able to
enjoy utmost profit and benefits. It is a separate legal entity as a company is a juristic person
which is established under Act. It allows free& easy transferability of shares.
Disadvantage of legal structure for company
One of the major disadvantage of private limited company legal structure is that in this,
organisation can not sold their shares on a public stock exchange. In addition to this, they are
having disadvantage of limited growth as well as restricted number of shareholders.
Public sector
Public sector include those organisation who are fully controlled by public bodies,
government agencies and government bodies. These organisation operate their functions as to
serve customers in best effective manner and further provide welfare to individuals and society.
It has been analysed that public sector organisations operate their functions in a democratic way
as in this every person who is entitled can undertake their own decision. Public sector
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organisation have authorisation by government entities. Further it has been determined that
organisation in this sector that different size, shape and structure as compared to legal bodies.
For example BBC conduct their operations as public sector entity and they are mainly
managed and controlled by government bodies.
Legal Structure: BBC operate their services in private sector are are mainly controlled by
governmental authorities. Mentioned below legal structure of company:
State Government:
In this form of legal structure sharing of political as well as legal rights mainly
undertakes among national and sate authorities. Within this state government mainly enjoy
formal decision-making rights without concerning to central government prior permission.
Local Government:
Within this, diverse range of local governing authorities operate their functioning in
regional as well as local level.
Central Government:
This is a supreme authority. It has been identified that within UK central government
hold rights to undertake decisions that are mainly related to securing people form terrorism,
nation security and distribution of national treasury budget.
Advantage of legal structure for company
Most important advantage of legal structure of public limited company is that it allows
companies to raise capital via public issue of shares. In addition to this, organisations involved in
public sector is also having different form of finance opportunities.
Disadvantage of legal structure for company
Disadvantage that is entitled with potential for loss of control, stock market vulnerability
and increased legal implications. This somehow affect entities within public legal structure to
fulfil their organisation aim.
Voluntary organisation
Entities those who conduct their functions in Voluntary sector have an aim which is to
effectively satisfy needs and wants of society (Boons and Lüdeke-Freund, 2013). These
organisations allocate funds from large private sector organisations and other organisational
units. They donate their funds as to gain goodwill. Volunteers offer their contribution willingly
in order to effectively serve individuals.
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For example Oxfam conduct their functions and activities voluntary sector as to offer
welfare services of needy individual from drought prone and other affected areas. This
organisation have an aim which is to effectively increase society and individual standard of
living.
Legal Structure:
Trust: Trust is mainly developed in order to effectively manage money and property in order to
fulfil a defined purpose. Within this legal structure of voluntary organisation a formative
formative relationship undertakes among donor of property and donor of money. In addition to
this, a trust duly ensure confidentiality as well as continuity.
Company limited by Guarantee: It is mainly considered as a separate set of legal entity that are
formulate by Memorandum of Association as well as Article of Association. In this members
are duly protected and have limited set of liability.
Associations: This is a unincorporated structure. It is a community of small set of group in which
individuals come together for a common purpose.
Advantage of legal structure for company
Main advantage of voluntary sector legal structure is that it having eternal life and have
protection from personal liability. Further it has been evaluated that organisations those who
operate under this legal structure is exempted from tax on their net income.
Disadvantage of legal structure for company
Major disadvantage of voluntary legal structure is that all the entities those who perform
their operations in non-profits legal structure is that there are required to submit annual filings
and are essential to comply with laws of incorporation.
Differences between organisations for profit and not for profit, and non-government
organisations (NGOs)
Organisations for profit Organisations not for profit Non – government
organisations
Organisations within this
segment have profit motive
and mainly conduct their
functioning to effectively
Organisations in this sector do
not have profit motive. Apart
from that they are mainly
focused upon satisfying needs
There are number of
organisations those who work
for offering humanitarian
benefits to society in order to
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maximize their earning as well
as probability in best effective
manner.
as well as demand of society
and individuals in best
effective manner.
increase living standards of
individuals in best effective
manner.
Companies are required to pay
taxes.
These organisations are not
required to pay taxes.
Organisations within this
segment does not have
requirement to pay taxes.
Difference between small, micro and SME's
Micro Small SME's
Micro scale organisation
mainly have employees with
less than 10 employees.
In this organisation mainly
have less than 50 employees.
Small scale organisations have
250 less than number of
employees.
Micro level organisation
mainly conduct their
operations at small scale thus
contribution within economy is
very less.
It has been signified that
growth of small scale
organisation significantly
impacts in promoting talent
among individuals.
Government are focused upon
increase number of SME as to
make significant growth in
economy.
P2 Explain the size and scope of a range of different types of organisations
There are numerous range of organisations who conduct their operations as to effectively
fulfil their predetermined goals as well as objectives. All these entities have distinguished set of
size, structure and scope. It has been analysed that public, voluntary and private sector
organisations conduct their operation with having their own size and scope. Organisations with
their size, scope and structure is being defined below:
PRIMARK
PRIMARK conduct their services in retailing industry and was established in 1969.
company headquartered in Dublin, Ireland and serve in more than 372 locations all around their
world. PRIMARK contribute their contribution in fast fashion trend with amazingly low prices.
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Main motive of company is to effectively serve their customers in best effective manner as to
gain high rate of profitability. Organisation is having their own culture and environment and
further treat their customers with best and qualitative products as well as services.
Vision and Mission PRIMARK a private sector organisation perform their activities with
a formative vision which is to effectively serve their customers and expand their services in those
areas where they still untouched. Further it has been analysed that PRIMARK main mission is
become “ Consumer first priority”. With Vision and Mission objectives company lead towards
more directional growth and opportunities.
Size and scope PRIMARK serves in more than 372 locations with having 70,000 and
more employees. Key areas where company offer their services include Austria, Netherlands,
France, Italy, Germany, United Kingdom and more. In addition with this, PRIMAK is planning
to make an expansion of their services in Europe region in order to effectively serve European
consumers with their best services.
Organisation structure:
Illustration 1: Structure of the PRIMARK
Sources: Structure of the PRIMARK, 2018
BBC
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BBC conduct their functions as one of the leading broadcasting firm. Company also offer
their services as Financial Institutions as they offer services like TV views to consumers,
investment generation in well defined manner. In addition with this, organisation also provide
best effective services as Consultancy Service.
Vision and Mission Organisation vision statement is to make “ “People thought to be
broadcast”. In addition with this, it has been determined that Mission statement of company is to
effectively increase overall organisational profitability by 20% with coming next financial years.
Size and scope
BBC offer their services as one of the largest and leading broadcasting entity and conduct their
operations in different nation with 1200 and more than employees. It has been determined that
organisation is having flat organisational structure in which they have diverse range of business
functions.
Organisational structure:
Illustration 2: Organisation structure of the BBC
Oxfam
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Oxfam operate their operations as charitable organisation. It is a combination of 20 other
entities and further offer welfare to society in best effective manner. This entity offer their
contribution in drought prone, famine prone etc. areas in order to effectively increase individuals
living standard.
Vision and Mission Oxfam a voluntary charitable organisation conduct their operations
with a mission which is to effectively serve society and offer them welfare and humanitarian
services. Vision of entity is to enhance living standards of individuals.
Size and scope Oxfam does not have any particular form of structure as their services are
operated with the help of volunteers . Scope of entity is to increase individual living standard and
offer humanitarian services world wide.
Organisational structure:
Figure 1 Oxfam's organisational structure
Sources: Organisation structure of Oxfam, 2019
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TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure
In an organisation there are different types of departments those who operate their
functions in coordinating manner (Bocken and et.al., 2013). Organisations are required to
conduct their operations in best effective manner thus, for this it is essential for all departments
to have formative set of relationship with each other in order to goals and objectives in well
defined manner. PRIMARK conduct their operations in retailing segment. This industrial sector
measure a lot competition. Thus, it is essential for them to effectively interrelated their functions
as to gain more competitive advancements as compared to their rivals. Mentioned below
interrelationship among PRIMARK department is being defined:
Finance with human resource department:
PRIMARK human resource department effectively perform their operations with finance
department in best effective manner. As they operate their functions in an interlinked manner.
Human resource department provide talented candidates to finance department. This benefits
them to effectively conduct their financial operations. While finance department of company
offer adequate and required sum of funds to human resources department that aid them to
conduct their operations related to recruitment, training and other. This lead towards effective
accomplishment of organisational goals and objectives.
Marketing with finance department:
Both of the marketing as well finance department are key pillars of PRIMARK. Thus, it
is essential for these department to operate their operations in a combined manner. As with the
help of this they can effectively able to increase organisation profitability and well as
productivity. Marketing department aid finance department by increasing organisational sales
and fund reserves while finance department offer financial aid to marketing department in order
to effectively conduct their operations. With the help of this both departments can effectively
able to accomplish goals and objectives of organisation in best effective manner.
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Illustration 3: Organisational Structure
(Source: Organisational Structure, 2019)
Human resource with sales department:
Human resource department and sales department of Primark are interrelated with one
another. It has been identified that company deals in retail sector thus it requires a highly skilled
staff who can perform all organisational activities in effective manner that also supports them in
gaining competitive advantages. Here, it can be said that HR manager of the company tries hard
to select effective and skilled workforce for sales department who could easily examine
requirement of market and according to that only they develops their sales activity which leads
to improvement in sales performance of the company in rightful manner. This shows
interrelationship between both the department. Along with this, sales department of this company
also convey required number of skills in workforce that makes it easier for them to finalise right
candidate according to the requirement. The main advantage and disadvantage of this are
described as below:
Advantages: Strong relationship between both the department will allow them in
bringing best talent in the company so that organisational goals and objectives as well as their
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personal goals can be attained in quicker manner. Right selection of employees will also lead to
reduction in employee turnover with in Primark. Along with this, another advantage of this for
the company is that sales performance of company will be raised as effective staff will provide
better output to the company.
Disadvantage: Excessive link among two or more department could affect organisation
in negative manner as they might get confused and could also forget their core motive. Along
with this, higher influence of one department on another could also create conflicts at workplace
which directly affects their working capability and might also reduce their productivity of
department at individual level.
TASK 3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
Organisation is required to effectively evaluate macro environment impact on
organisation functions in order to conduct operations in smooth and effective manner. It has been
analysed that macro environment include different types of elements that impacts on an
organisation in a negative manner. Thus, it become essential for PRIMARK to effectively
evaluate political, economical, environmental, legal and social factors as to increase
effectiveness of operations. PESTEL analysis has been in context with PRIMARK is being
conducted below:
Political factor:
Political factor include laws, legislations and rules of government which is required to be
undertaken by organisations in order to abide by them as to conduct their operations in best
effective manner. This factor mainly determines government interference. Thus, PRIMARK is
required to ensure that they implement all government trade policies, pricing policies and more.
Positive – PRIMARK also operate their services in UK which is having stable market
stability. In addition with this, UK government is also taking many welfare decisions for
organisation that will benefit company to grow their opportunities.
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Negative -Strict regulations of government on trade may turn out as an negative factor for
PRIMARK as this will affect their import as well as export of products.
Economical factor:
Economical factor is related to inflation, economic condition of country, economic
growth, exchange rates, inflation and more. These factor affect organisation activities as well as
consumer purchasing power.
Positive – UK economic conditions continuously measure steady growth and it is
included in world leading economies. This will benefit PRIMARK to gain many developing
opportunities and growth for this region and increase their profitability.
Negative – Government of United Kingdom increased interest rates relating to products
and services. This will impact on sales of PRIMARK products as well as services that later
impact on their profitability.
Social factor:
Social factor covers different types of factors such as attitude, culture and believes,
education level, population class structure, leisure interests and more (Aithal, 2016). It is
essential for PRIMARK to effectively undertake proper understanding of all these factors in
order to effectively operate organisational operations.
Positive -It has been analysed that culture and consumer lifestyle of UK society match
with PRIMARK products as well as services. This will benefit company to increase their overall
sales ratio in best effective manner.
Negative -Due to change in consumer needs and wants in continuous manner affect
PRIMARK in negative way. This will affect organisation functioning in many different ways.
Technological factor:
Technology include factors relating to innovation and development. This impacts on
PRIMARK operations in many ways. As in this company is required to keeps on updating their
software, and other technological aspects as to effectively operate their operations.
Positive – UK is technologically advanced which will impact on PRIMARK in positive
ways. Thus, company can undertake the use of new as well as updated technology in order to
effectively increase organisational productivity.
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Negative -In order to compete with other organisational units company require huge
amount of fund. In addition with this, company is required to provide training to their employees
in order to use implemented techniques that also require funds.
Environmental factor:
Environmental factor include elements related to laws relating of pollution,
environmental laws, weather condition, waste management and climate change. All these factors
impact on organisation in negative as well as positive way. Thus it is essential for PRIMARK to
implement all environmental laws and regulations in best effective manner in their
organisational structure.
Positive – PRIMARK can lower down their operational waste and can take use of
recycling process in order to create strong brand image. In addition with this, company can also
take advantage of corporate social welfare in order to effectively contribute towards environment
and society.
Negative -Critical inspection and observation lead towards adding additional cost in
PRIMARK operations. This affect organisation in many different ways.
Legal factor:
There are different types of rules, laws and legislations which are required to be
undertaken by PRIMARK as to conduct their operations without being engaged in any other
legal penalties. With the help of this they can overcome legal challenges in best effective
manner. There are some negative as well as positive impact of legal factors on organisation is
being discussed
Positive - This factor provide legal protection to products and services of company. Legal
protection of intellectual property can be consider as a positive factor for PRIMARK
organisation. This factor provides patents and copyrights as well as other IPR right to products.
Negative -Increase in minimum wages have negative impact on business. This factor
leads to increase in wages provides to employees and high wages paid to workers it will directly
affect the overall profitability of organisation.
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.
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Internal and external environment play a crucial role is identified strengths and weakness
of an organisation. There are various factor of macro and micro environment which is important
for business as it has major impact on business operations. Changes in internal and external
environment can lead to effect the efficiency of Primark organisation. This company is dealing in
retailing sector so understanding all the factor as well as evaluating them effectively will lead to
success of an organisation. By analysing and evaluating SWOT analysis company can identify
internal and external environment. This is concept which help in determining the strength,
weaknesses as well as opportunities and threats for respective organisation. Strengths and
weaknesses are included in internal environment where as opportunities and threat factor consist
of external environment.
Strengths: Primark is a well known company which is dealing in retailing industry. This
company is providing effective and efficient services to customers as well as its products are able
to meet with customers requirement. This company is one of the largest supermarket in the world
and it is capturing huge market share. Its strengths includes the diversified investment as well as
its high quality IT infrastructure. This is very helpful in reaching to wider market share with
more affordable and wide platforms of internet. Employees working in this organisation can be
consider as it biggest strengths as they are using their full potential to achieve goals and objective
of organisation.
Weaknesses: . This company has major issues with their inventory management as well
as supply management. Respective company is not able to meet with the requirement and not
able to manage its inventory system in correct manner. Its low margins and growing of cost can
be considered as it biggest weakness which is affect the organisation.
Opportunities: There are various opportunities for Primark organisation to grow and
develop its business. This company should focus on develop and creating new marketing
strategies in order to attract more and more customers. By promoting and advertising product
and services, respective company will be able to enhance its sales as well as probability. Market
expansion at global level is a great opportunities for this organisation. Company can also grow
and increase its business by providing its product through online market. Primark organisation
should develop an attractive online groceries and convenience store website in order to increase
customer bases and earn more profits.
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Threat: Retail sector is highly competitive and therefore Primark has to face excessive
competition in the market. UK government imposes strict rules and regulations which are to be
followed by all the organisations which influence their performance and efficiency in the market.
Brexit might negatively affect the prices of raw materials (Kolk, A., 2016). Changes in prices by
government and implementation high interest rates have a negative impact on sales of products
and services. Choice of customers are continuously changing which leads to change in company
policies frequently so as to provide goods and services to customers according to their needs and
wants that affects profitability and efficiency of organisation.
TASK 4
P6 Explain how strengths and weaknesses interrelate with external macro factors
There is direct relationship between strengths and weaknesses of Primark and the macro
environmental factors as they affect business decisions and strategies.
Political factor: These factors are related to policies and administrative practices of the
government which affects businesses existing in that country. Primark's strengths is that it is
following all rules and regulation of government which ensures minimum intervention and
interference from government enabling Primark to smoothly operate its functions. This factor
helps it to grow and increase its market share. Primark deals in retail sector and government of
UK is implementing various policies for the welfare of retail industry. This will bring new
opportunities to Primark which will help it in growing business and its operations. Brexit on the
other hand might have a negative impact on the growth of retail sector as the raw materials that
are imported from the EU will become more expensive that might discourage the customers to
purchase their products.
Economical factor: Economical factor includes different factors such as growth rate of
country, economic condition, interest rate, inflation, tax rate, unemployment etc. The economy of
UK is strong which gives the advantage to the company to offer high quality products and
services to customers. The purchasing power of the people is high which helps them in
purchasing expensive products. Brexit might increase the interest rates that will affect the
purchasing power of the consumers and thereby decrease the profitability of the company.
Social factor: It includes factors such as population of the country, attitude and belief of
people towards products and services offered by organisations, age, demographics etc (Hillary,
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R., 2017). UK has a huge consumer market who are motivated towards building a good lifestyle
for themselves. Primark has been able to maintain strong relationship with its customers by
fulfilling their demands and requirements. Though the demands of customers change constantly
which requires the company to spend a huge amount in research and development so as to be
able to meet the changing demands of the customers. This affects the profit of organisation as
expenses of market research increases.
Technological: UK is a technologically advanced country where new and advanced
technologies keep on developing rapidly. Technology plays an important role in an organisation
to help it grow in the market by bringing new and innovative ideas in their processes, products or
services. Primark can take the advantage of advanced technology that is available in the UK to
build innovative products so as to be the first one in the industry to bring such innovations
(Savrul, Incekara and Sener, 2014). Employees of Primark are highly qualified and efficient who
can easily adapt to new technology in the processes in a cost effective manner which will help
the organisation in achieving its objectives.
Thus it can be seen that strengths and weaknesses of Primark interrelates to the macro
environment which influences various policies, decisions and strategies of the company.
Porters five force analysis:
It is important for an organisation to undertake different types of competitive forces
within marketplace as to frame best effective strategies. It will effectively aid company to gain
more economic advancements and market share holding. In order to accomplish this manager of
PRIMARK undertake advantage of Porter Five Force analysis:
Rivalry among the existing competitors:
In relation with retailing segment, it is identified that there is very high competition
among existing rivals. Within retailing sector main key players are ALDI, TESCO, John Lewis,
M&S that also consider as primary rivals for PRIMARK that also offer qualitative products as
well as services to customer's at affordable price range. In order to challenge this PRIMARK can
undertake use of diversification strategy as to satisfy needs of customers in best effective manner
and gain more competitive advancements as per compared to other rivals.
Bargaining power of suppliers:
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It has been determined that, retailing sector have less bargaining power of suppliers of
PRIMARK because company operate their functions at large scale that allow them to have
contact with large number of vendors. This effectively allow organisation to have capabilities to
negotiate price range and can further make decision to switch vendors.
Bargaining power of buyers:
In retailing organisational sector, bargaining power of buyers is comparatively high as
consumers have significant opportunities to get qualitative products as well as services along
with long term durability with enterprises. This acts as threat for PRIMARK as with retailing
segment there are number of organisation who hold strong market share holding within
marketplace and satisfy customers with their products and services. Thus, in order to overcome
this threat, it is essential for PRIMARK to offer their offerings at combatively affordable range
as to effectively satisfy customers in best effective manner and gain more economic
advancements.
Threat of substitution:
It has been determined that, in retailing segment threat of substitutes is significantly high
as there are different types of already existing organisations that mainly operate their operations
while offering same products and services as PRIMARK. In addition with this, organisations like
TESCO, Sainsbury's, ASDA etc. pose threat as they have potential to attract significant attention
of customer base towards qualitative and affordable products and services of organisation. Thus,
it is essential for PRIMARK to effectively focus on preferences as well as demand of customers
in order to offer customers with satisfactory offerings.
Threat of New Entrants:
It has been identified that, within retailing segment there is low level of threat as in order
to enter into this market segment new entrants is required to have large base of capital. This
proves to be beneficial for already existing organisation in order to effectively ensure their
sustainable growth in marketplace. In addition with this, it has been signified that there are
different types of retailing laws that retain new organisation to enter into this market segment.
PRIMARK can take use of this opportunities to make effective increase in their sales as well as
profitability.
Value Chain
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Value chain acts as a significant tool that aid organisation to identify their internal
activities in order to successfully accomplish organisation goals as well as objectives in best
effective manner. It also allow PRIMARK to have long term sustainability within marketplace.
Mentioned below value chain analysis of PRIMARK is conducted:
Primary Activities
Inbound logistics
It has been identified that PRIMARK logistic operations are highly complex. In addition
with this, it has been signified that company operate their service in more than 372 locations.
This acts as economies of scale for company as they have large scope to conduct their operations
in order to get more source of value creation.
Operations
PRIMARK conduct their operations into three different segment namely clothing,
housewares and cosmetics. Through these segment company effectively serve their customers in
best effective manner.
Outbound logistics
It has been signified that cost-effectiveness and flexibility acts as a major source for vale
creation for PRIMARK outbound logistics. In addition with this, organisation allowed their
customers to have home delivery options by purchasing products from physical stores of
PRIMARK within some particular locations.
Marketing and sales
Organisation marketing strategies mainly focus in offering customers with best and
qualitative products and services while maintaining affordable price range along with wide
selection of goods. In addition with this organisation offer their offerings by online and offline
channels which is major source of PRIMARK revenue.
Service
Owing to cost leadership strategy of PRIMARK, it become bit hard for organisation to
offer services at higher standards. Due to the fact that organisation business strategy mainly
stressed upon cost reduction while in order to satisfy customers with excellent services there is
need of additional costs.
Secondary Activities
Procurement
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PRIMARK effectively maintain formative relationship with their suppliers in order to get
raw material in best effective manner as to engage in the process of manufacturing process in
well defined manner all across the globe.
Technology development
PRIMARK make effective investments in their research and development segment as to
increase knowldege realted to latest technologies as well as trends that are pertaining in
marketplace. And further satisfy them with effective products as well as services.
Human resource management
PRIMARK continuously engage in providing regular training session and programmes to
rheir worlforce in order to increase their skill and knowledge and further equip them with
information related to product design and etc.
Firm infrastructure
PRIMARK possesses excellent quality-control mechanisms as well as makes use of
balanced scorecard as a technique to ensure orderly conduct while introducing new
infrastructure.
VRIO of PRIMARK
With the help of VRIO analysis PRIMARK can effectively able to access strength as well
as weaknesses of company in best effective manner that are based on premier concepts. This will
significantly aid organisation to gain more competitive advancements in best effective manner.
Mentioned below VRIO analysis is being done in relation with PRIMARK:
Valuable-
PRIMARK workforce acts as major strength and resource for organisation that aid
organisation to accomplish their task in accurate time frame. In addition with this, with
significant global presence organisation can effectively explore more attractive opportunities.
Further, it has been identified that company take advantage of cost strategy as to make
significant place within marketplace. Along with this, organisation take use of numerous form of
strategy as to make significant increase in customer satisfaction.
Rare-
Business organisation take significant advantage of expanding their business at
international scale from one country thus, it is not rare. Apart from that differentiation strategy is
rare as well as different comparable to PRIMARK competitors. In addition with this, it has been
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identified that human resource hold creative and innovative nature that are mainly shown in
order to carry out their business while operating their business operations in unique manner.
Imitable-
It has been signified that human resource as well as global presence acts as two of the
resource that are also seen in other organisation. But differentiation strategy is hard to imitate
because it mainly depend upon organisation. It is mainly developed by organisation management
by taking consideration of present prevailing situations as well as position within marketplace.
Organisation-
Main focus of organisation is to effectively manage resources like cost strategy, human
capital and global presence in best effective manner with the help of which they can effectively
able to gain more competitive advancements. It is useful to effectively undertake resources and
utilize them in best effective manner as to gain maximum output from limited resources.
SWOT
STRENGTH WEAKNESSES
PRIMARK has comparative and strong
presence at international platform. In addition
with this, organisation undertake use of cost
strategy with the help of which they remain as
market leader.
It has been identified that organisation is does
not have effective digital market holding that
significantly impacts upon business
productivity and profitability and further
restrict them to attract large base of customers
from many different locations.
THREATS OPPORTUNITIES
There is significant rise in online business
competition that acts as major threat for
PRIMARK as they will loose their existing
customer base.
By conducting business via online medium
PRIMARK can gain more advancements in
their profitability as well as productivity. In
addition with this, they cab also gain more
business opportunities with the help of which
they can increase their competitive image on
international platform.
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TOWS Analysis
SAINSBURY'S
STRENGTHS (S) WEAKNESSES (W)
 Telling Automation
 Diversification
 Skilful Workforce
 Powerful Brand Image
 Rise in Selling Price
OPPORTUNITIES (O)  Technological Progress  High Inflation rate
THREATS (T)  Unsuitability in
Political Environment
 Decrease in Economic
State
 High increase in
government rules and
regulations
CONCLUSION
From the above report it can be concluded analysing and identifying business
environment is very important for successful running of an organisation. There are various factor
of internal and external environment which have major impact of effective and efficient
functioning of organisation. This will influence the decision making and help in improve
productivity as well as profitability of organisation.
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