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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